Lack of customer confidence is biggest challenge facing banking sector, says CISI survey
A lack of customer confidence is the biggest challenge facing the banking sector, according to a survey carried out by the CISI, five years after the collapse of Lehman Brothers.
Of nearly 650 respondents to the survey, 52 per cent pointed to a low level of confidence in banks being the number one stumbling block to their continued recovery.
A further 24 per cent of those taking part said over regulation was the key issue for the industry followed by insufficient controls (13 per cent) and shortage of capital (11 per cent).
“Trust is the principal challenge”, remarked one contributor. Another said: “Banks are still looking for ways to profit at the expense of people who use their services and then complain when what should be classed as malpractice is restricted.”
But others argued that banks were too constrained in the post-crisis era.
“After Lehman’s collapse, all regulation bodies have been more tough on banks, which is getting in the way of trading,” claimed a respondent.
Other comments included that banks were deterred from offering new products as they were “too scared of the potential damage” that may result “rightly or wrongly” from regulatory intervention.
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