10 years on from the crash: are banks providing better value for money?

We’ve discussed progress in banking with fellow challenger banks

We’ve teamed up with Masthaven, OakNorth and Redwood Bank to discuss how much progress has been made in banking since the 2008 Global Financial Crash. On the 10-year anniversary of the Bear Stearns fire sale which marked the peak of the crisis, we debated these questions:

Challenger Bank Panel Discussion about what has changed in banking since the Global Financial Crisis

In general, the panellists agreed with CivilisedBank’s CEO Philip Acton that banking has become more resilient, better managed, and better regulated. However, more change is needed. The customer experience still needs to improve. Challenger banks aim to do just that.

According to CivilisedBank research, about a quarter of UK senior executives still think nothing has changed in banking since the crisis, while 3 in 10 are undecided as to whether behaviour has changed for the better. We still hear many of the familiar concerns: a focus on profit over integrity, branch closures, poor customer service, to name a few. Unfortunately, these results indicate that despite good work being done this has not resonated with the wider public.

At CivilisedBank we think banking culture needs to bring traditional banking values back to benefit the customer. We will introduce relationship banking with Local Bankers who bring the bank to customers, backed up by best of breed technology. There’s a big appetite for truly responsive, personal service in the market.

Damien Burke of 4most suggested that one of the biggest changes in the industry is the introduction of Open Banking, regulated through PSD2, which came into effect in 2018. Will it bring the much-hailed transparency of banking offers to customers?

Gary Wilkinson of Redwood Bank cautioned that Open Banking providing a straight comparison of pricing between banks neglects the service aspect which is especially important to businesses.

#OpenBanking’s challenge: A straight comparison of prices of #banking offers could crowd out the service aspect of banking, says Gary Wilkinson if @redwoodbank #GFC10

— CivilisedBank (@CivilisedBank) March 14, 2018

Graham Olive of OakNorth added to this that the one stop shop banking model is broken. The incumbent banks are struggling with their legacy systems. That’s why technology and bespoke service give challenger banks a huge advantage to serve customers better.

The one stop shop #banking model is broken, says Graham Olive of @oaknorth plus incumbents are struggling with their legacy systems. Technology and bespoke service give #challengerbanks a huge advantage to serve customers better. #GFC10

— CivilisedBank (@CivilisedBank) March 14, 2018

Jon Hall from Masthaven stressed that bad behaviour isn't exclusive to banking. We've seen it in the car industry with vehicle emissions etc. - and in all industries we need to ask why good people do bad things.

Jon Hall @MasthavenBank " bad behaviour isn't exclusive to banking - we've seen it in the car industry with vehicle emissions etc. - and in all industries we need to ask why good people do bad things" #gfc10

— Newgate Comms (@NewgateComms) March 14, 2018

CivilisedBank’s CEO Philip Acton concluded: "The next crisis won't be like the last, and we mustn't think that by fixing the problems of the past we fix the problems of the future."

Philip Acton @CivilisedBank "the next crisis won't be like the last, and we mustn't think that by fixing the problems of the past will fix the problems of the future" #gfc10

— Newgate Comms (@NewgateComms) March 14, 2018

In summary, recent scandals in various industries have shown that bad behaviour and corporate culture are not exclusive to banking. There's more work to be done before banks can regain trust and demonstrate value to society.

Keep updated about our progress towards launching CivilisedBank in 2018.