Ahead of the 10th anniversary of the big bank bailout on 13th October, new consumer research published today reveals that the country predicts the next financial crash is likely to happen within four years.
Suggesting that confidence in financial institutions is still shaky at best, the new report from the price comparison site looks at how consumer behaviour and attitudes have changed following the 2008 crash and subsequent bailout of Lloyds TSB, HBOS and RBS by the UK government.
The research shows that over a third of 18 to 24-year-olds are less likely to save money as a direct result of interest rates falling so low. Even those in older age brackets typically feel the same way – at least 25 per cent in each category.
Additionally, over one-fifth (21 per cent) of British adults are now more likely to avoid putting all their income into a bank account – with the figure nearly doubling to 41 per cent of Londoners. Five per cent of Brits now believe that hiding cash in a safe is the securest way of storing money.
That said, the majority of the country (51 per cent) are still either likely or very likely to take out a loan with a bank, though only one per cent would ever do so through a pay-day lender.
When asked how they felt about the changes banks and building societies have made in response to the financial crash of 2008, Brits drew the following conclusions:
- Over one in five (22 per cent) did not notice any changes that were implemented
- Nearly half, 45 per cent, felt positively about changes the banks have made
- Those over 55were most negative about the changes made (13 per cent)
Sally Francis-Miles, money spokesperson at MoneySuperMarket, commented: “Many people will remember or were even directly affected by the financial crash of 2008. On the tenth anniversary of one of the most significant events of the crash, it’s important to reflect on the lessons learned to ensure they are applied if another crash and subsequent recession hits.
“While Brits are clearly more conscious and even sceptical of the way banks manage their money, our new report suggests that 10 per cent of the nation don’t even know what the banks do with their hard-earned cash. However, the important thing to remember is that money saved with a financial institution covered by the Financial Services Compensation Scheme is protected up to £85,000. If you have more than that, it’s wise to spread it across different accounts so all your savings are protected.
“British financial institutions must continue in their efforts to ensure the public that they are doing their part in preventing another crash.”