This Day On The Street
Continue to site
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

Consumer Surveys Tell Big Banks: You Need To Do Better

"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 - Get Report), 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GDOT $18.71 3.90%
AAPL $93.79 0.10%
FB $101.98 0.07%
GOOG $682.32 -0.12%
TSLA $150.99 0.35%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,863.14 +34.06 1.86%
NASDAQ 4,336.5450 +69.7080 1.63%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs