Customer financial wellbeing deteriorates while trust in banks rises

  • Around half of women and two fifths of men say that their wellbeing has been negatively affected due to their financial situation;
  • More than three fifths of customers are pleased with their bank’s response to COVID-19;
  • Customers switching are choosing providers which have a better impact on society.

Over a third (34%) of UK consumers trust their bank more since the onset of COVID-19, a new survey from Deloitte has revealed, whilst just over half (52%) would like their bank to do even more to help society as a result of the pandemic.

Deloitte’s Better Banking Survey sought the views of over 1,000 UK banking customers during the COVID-19 pandemic to understand their awareness of their banks’ impact on society.

It found that around two thirds (68%) of respondents are pleased with their bank’s response to the COVID-19 pandemic and a similar proportion (66%) think that their bank is currently focussed on helping those in need as a result of COVID-19.

How banks have responded has also influenced those who switched banking providers. The biggest motivator for those opening or switching accounts as a result of COVID-19 – for more than a third (36%) of those who did so – was that their new banking provider has a better impact on society.

Richard Kibble, UK head of banking at Deloitte, said: “The COVID-19 pandemic has challenged all businesses like never before. At the heart of the Government’s response have been the banks which together have authorised payment holidays and issued various support packages worth over £57 billion. This hasn’t gone unnoticed by customers with more than three fifths of customers saying they were pleased with their banks response to the crisis. Moreover, customers are voting with their feet, with more than a third of those who switched or opened bank accounts as a result of the pandemic saying they were motivated by their new bank’s societal impact.”

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Human impact

Unsurprisingly, the survey shows that respondents’ financial and emotional wellbeing has been harmed by the pandemic, with women bearing more of the brunt of both than men.

Just under half of women (49%) and over two fifths of men (41%) said that their wellbeing has been negatively affected due to their financial situation, as a result of COVID-19. This figure worsens when considering people who either have less disposable income, have taken out additional loans or had a mortgage holiday, as three fifths (60%) of these said their wellbeing had been negatively affected.

More than two fifths (44%) of women either have less disposable income, have borrowed money, taken out additional credit or taken a payment holiday since the onset of COVID-19. This compares to just under two fifths (39%) of men.

This financial hit has left women financially vulnerable: while a third (33%) of men had a total of £100 or less left at the end of the month two fifths (40%) of women are in this precarious position

Margaret Doyle, financial services partner at Deloitte said: “When the pandemic hit, the financial health of customers and businesses were pushed to their limits. The financial services industry will need to redouble their efforts on financial inclusion to help protect customers against the economic challenges ahead. This is an opportunity for firms to support customers in managing their finances – through education and innovation – and to play a crucial role in the UK’s economic recovery.”

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Notes to editors

About the research

The survey was conducted by Pollfish on behalf of Deloitte between 4th and 5th August 2020. A total of 1,250 UK banking customers took part in the online survey. Customers from all major UK banks took part with an equal split between gender and 20% split across all five age groups: 18-24, 25-34, 35-44, 45-54, 55+.

About Deloitte
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity.

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Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK’s leading professional services firms.

The information contained in this press release is correct at the time of going to press.

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