The Move Your Money Switching Scorecard compares just over 70 UK and global banking providers on five key categories – honesty, customer service, culture, supporting the economy and ethics. Each category is worth a fifth of the provider’s overall score, and is compiled using a number of indicators. These indicators have been designed to be proportionate, robust and comparable, and we have taken steps to avoid any undue bias in our comparisons.
In the honesty category, we used indicators for fines, use of tax havens, political lobbying and misleading advertising. In customer service, we looked at complaints, mis-selling PPI, referrals to the Financial Ombudsman and customer satisfaction. Culture looks at customer power, directors’ pay and bonuses, and the proportion of women on the board. Finally, we looked at whether the banks are too big to fail, work in risky ways, fail to support the real economy and have poor ethics.
The evidence base that supports the Move Your Money Switching Scorecard was compiled in July 2013 by Ethical Consumer, the UKs leading alternative consumer organisation. You can find the full scorecard and information on how we got the scores here.
Today Barclays is expected to announce a bonus pool of £1.852bn, despite pre-tax profits plummeting from £5.9 billion to £246 milllion.
The move will inevitably reignite public anger over excessive pay at Barclays after a year in which the bank was fined £290 million for rigging Libor and has been mired in a string of scandals, ranging from mis-selling to structuring aggressive tax avoidance schemes.
This bumper bonus pool is an outrageous reward for failure in a year that can only be described as the most shameful in Barclays’ 323 year history.
Antony Jenkins, the man charged with cleaning up the bank’s tarnished image after the resignation of disgraced former CEO Bob Diamond, will be laying out Barclays’ new strategy to create a “socially useful bank”, dubbed ‘Project Transform’.
However, many insiders say that the reforms will prove to be largely cosmetic, focusing on cutting costs and streamlining the more controversial units such as those involved in tax structuring and commodity markets. This contrasts sharply with the slash-and-burn reforms advocated by senior regulators, such as the former Governor of the Bank of England, Mervyn King.
How can customers have confidence in Jenkins’ claim to be building a ‘better bank for customers and Britain’ whilst he continues to sweep bad news under the carpet and refuses to implement the fundamental changes needed?