Complaints against banks on the rise, customers furious

Business banking news review: week ending 4 Sept 2014

The financial ombudsman released new figures concerning the worst banks in the UK in terms of number of complaints – and it’s clear customers have had enough.

Once again – and this will be no surprise to anyone – it was the largest personal and business bank account providers that have been found to be the ones with the most problems. Lloyds Banking Group in particular was the ‘big winner,’ with the most complaints recorded in the first half of 2014. How many is too many? Well how about more than 62,000 complaints, is that enough for you? Considering the total number of complaints was just over 190,000, this means Lloyds was responsible for nearly one out of every three.

Lloyds was also the biggest loser by a large margin as well. The next runner up, Barclays, had only around 27,00 complaints, and bailed-out banking giant RBS only recorded around 13,000. It’s obvious that people are just tired of dealing with these big-name banking institutions, but for the most part feel powerless in that there’s not too many alternatives to choose from.

Well, there may be some good news in that department coming to the UK sometime in the near future. New reports are emerging out of the Asia Pacific region that alternatives to traditional banking are gaining ground. China in particular, with its emergent economy, is the birthplace of online-only mobile banking arrangements that are spreading like wildfire.

There are two large firms in China that are specialising in providing ways to purchase everyday items without a debit card or anything like that. Instead it all lives online – no bank branches or anything like that – and works through your mobile phone. Want to buy something? Just check out with your smart phone and your funds are debited without any mess. If you ask me it’s a pretty solid system, but of course there are some possible problems such as banking fraud, hacking and other criminal activity that could be a possible spanner in the works.

Still, it can’t possibly be worse than having to deal with Barclays or Lloyds customer service every time something goes all pear-shaped with your bank account. I can only hope that similar systems make their way over the UK sooner or later so that we can see if they’re actually a viable alternative to High Street banks!

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