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Part 1 of our new 'Shopping for Legitimate Banking Alternatives' series
We recently asked a group of people in the UK* about their feelings towards banks. It turns out that most people see their banks as a ‘frenemy’. It’s a love-hate relationship, you know? “We can’t live with them, but we can also not live without them.”
*500 UK residents, 18-65 years of age, 45% Male / 55% Female.
Here’s what they had to say:
Almost a third of people surveyed don't trust, or are unsure if they trust, banking institutions
Over 60% of people surveyed don't think banks have their customers best interest at the heart of what they do
Despite this, nearly 78% of people surveyed believe that banks are the safest place for their money! (“We don’t have any alternatives!”)
It also turned out that folks are keen enough to explore newer banking options, like banking apps. Nearly half are unconvinced that legacy banks are better than newer banks.
What’s your take? Share and comment on social media to let us know! Remember to tag us in your posts!
For me, the world of new banking solutions feels like the fresh breeze of freedom. And yet, I also feel my gut churn. Let’s say that, when it comes to my money, I have trust issues.
And, given the track record of financial service providers around the world, it would be reckless not to think twice (even 10 times) about where you put your money.
Barclays came in first as the most popular bank among the people who completed our survey. Perhaps one of the better of a bunch of bad options? Let’s see...
In a 5-minute web search, I compiled the following list of Barclays’ financial misconducts over the past 5 years:
In November 2015, the FCA fined Barclays (the most used bank of our respondents) a whopping £72million for arranging and executing financial crimes for ultra-high net worth clients between 2011 and 2012.
Also in 2016, the DFS (Department of Financial Services) in New York imposed a fine of 485 million dollars for manipulating the forex markets.
In 2017, a Barclays banker pleaded guilty to part in £16m money-laundering network.
In 2019, the SEC fined Barclays more than $6 million for illicit referral hires by trying to boost its investment banking business by hiring the friends and relatives of powerful foreign government officials.
Even the services that promote themselves as ALTERNATIVES to the shady world of legacy banking are proving themselves dodgy as hell...
For a start, let’s look at the latest dirt on the cryptocurrency industry. Over the past two weeks alone;
New Zealand Police seized $91 million from a Russian Bitcoin exchange operator accused of involvement with money laundering,
the U.S Securities and Exchanges Commission (SEC) has ordered an asset freeze on three digital currency investment funds for fraud,
while the Austrian regulator has blacklisted four unlicensed digital currency firms.
Whoever still believes that the crypto industry is above the law, must surely live in la-la land!
In summary, if you mistrust banking institutions (new and old), you are not the crazy one. At the same time, seeking an alternative is easier said than done. In our upcoming blog series, we’ll be covering some of the criteria you need to look out for to ensure that the banking app, alternative bank, or crypto exchange, is above board and good to be trusted with your moolah.
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