Retail Bank Execs Say Consumer Trust Has Weakened In Last Half-Year

Forty-three percent of retail bank executives feel consumer trust in banks has eroded over the last six months, according to the BAI & Finacle Bank Executive Index.

Financial services information provider BAI compiled the index through a national, online survey of bank executives across 100 U.S. financial institutions. The index tracks bankers' views on the overall economy, the banking industry specifically, and the perceptions, performance and priorities of financial institutions.

‘Our aim with this latest research is to give bankers a benchmark by which to measure themselves, the industry and their respective institutions,’ explains Debbie Bianucci, president and CEO of BAI.

Seventy-five percent of respondents feel the overall employment situation in the country is worse now than it was half a year ago, the index shows; 30% see the economic situation being worse in 2010 than it is now.

Eleven percent of bankers feel their banks have a better understanding of consumers' financial needs than six months ago, while one in four bankers believe banks will have a greater understanding by next year. The remaining percentage of respondents feel banks will have the same understanding of consumers' financial goals as they currently have, BAI says.

Only 12% of respondents believe the Troubled Asset Relief Program has had a positive impact on their bank. Most bankers took a dim view of increased government regulation, BAI says, though 87% of those surveyed said the government's action to raise Federal Deposit Insurance Corp. insurance to $250,000 had a positive impact on consumer bank deposits.



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