This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Consumer Surveys Tell Big Banks: You Need To Do Better

Stocks in this article: GDOT

"The big banks' multibillion-dollar campaigns aren't moving the needle on the favorability meter because they continue to stick consumers and Main Street businesses with unfair, hidden fees," says Doug Kantor, a lawyer with the MPC. "With good reason, Americans still do not trust big banks."

The coalition cites data from its own survey in 2010, when retailers as well as consumers viewed credit card fees as onerous. The group also notes that U.S. banking consumers pay eight times more than their European counterparts.

Then there's a GoBank survey released last week that shows Americans are clearly growing frustrated with large financial institutions:

  • 64% of consumers surveyed say they do not fully trust big banks.
  • 87% of bank customers say they do not feel their bank is transparent, and 68% do not perceive their bank as being "on their side."
  • 30% say they are surprised by unexpected bank fees, and 31% claim their bank's fees are simply unfair.
  • 40% say that dealing with their bank or finances stresses them out sometimes.

Banks may have a bigger problem on their hands.

When asked who could build a better banking model, survey respondents said Silicon Valley would do a better job than Wall Street.

"Historically, traditional bank accounts have complex fees that favor the institutions, not their customers," says Lewis Goodwin, CEO of Green Dot Bank (GDOT), the parent company of GoBank). "We believe people are hungry for more transparency and innovative features from their bank ... the kind they often get from tech companies."

Throw into the mix that Americans' trust in American banks stands at a paltry 21%, and it's apparent the traditional banking model is in big trouble.

Since it's not obvious what banks are doing to win back that trust, time will only tell if the "trust" issue is resolvable for big financial institutions. But the snapshots taken by the coalition and Go Bank show the industry has a long road ahead, with no guarantees consumers will be along for the ride.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs