Half of Americans Have Lost Trust in Big Banks

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Trust is important when it comes to choosing an institution to bank your money.

A recent survey from Harris Poll reveals that Americans have lost trust in big banks. Half of adults said their trust in banks has dropped over the past few years. Wall Street and mortgage lenders fared even worse, with 57 percent of people reporting that they’ve lost faith in those financial institutions.

Credit unions earned favorable ratings, with only 18 percent saying they’ve lost trust in these member-owned institutions.

Consumers’ sentiments about banks prove that bigger isn’t always better. According to Forbes:

Local banks and credit unions with a smaller area of influence have higher trust levels than nationwide financial institutions. Over three-quarters of those surveyed reported a great deal of trust for local credit unions, while 70 percent said the same for local branches of a regional bank.

The least trusted financial institution is an online-only bank. Not surprisingly, the millennial crowd and Gen Xers are more likely to trust online banks.

Most Americans (66 percent) said personal experience is the most influential factor when it comes to trusting financial institutions. “The quality of products and services, quality of customer care, and amount charged in fees all tie for next most influential, with 56 percent saying each of these have a great deal of influence,” Harris Poll said.

Although big banks are the second-least-trusted financial institution, they have the most customers. Forty-five percent of Americans are big-bank customers.

I’ve only banked with small, regional banks or credit unions. I’ve always been happy with the service.

Who do you bank with? What is your level of trust in financial institutions? Share your comments below or on our Facebook page.

And if you want to beat the high fees charged by banks, check out the following video.