According to thinktank New City Agenda, the UK’s rotten banking system will take generations to change the behaviour of profiteering and scandalous selling methods. The “aggressive” market that manipulates different elements that safeguard the stability of the financial system became its bane.
Almost 50% of the profits made by banks in the last few decades all came from mis selling financial products. No, it’s not just payment protection insurance, but other financial products. Rate-rigging foreign exchanges and Libor had cost bank millions in fines, but it shows how untrustworthy their employees and services are.
Banks will still exist in the next 25 or 50 years and financial scandals like PPI wouldv’e withered away by then. But it remains to be seen the changes needed in banks to provide for the customer products they truly need without the intent of making profit or additional bonuses for themselves.
These bonuses are lucrative too.
A great deal of UK consumers now had lacking trust against their banks. Everyone has grown meticulous over the fine print. They question every aspect of their loan, mortgage or credit card. People are infuriated with a minor mistake a bank makes.
Of course, all of this is the fault of banks. Unless they want to shape up quickly, consumers, and the government, may intervene to ensure fairness in the financing service.