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.
Contender for the job of Governor of the Bank of England, Andy Haldane, last night said:
“If as bank customers we want to change the culture of banking, then we should start by supporting those banks who are delivering that change. Putting your money where your mouth is would deliver far greater and more durable change than any amount of banker-bashing.”
Haldane said that a corner is being turned in the UK’s banking sector, emphasising that change was coming both from regulators and ordinary people who are demanding better banks. He praised a model of banking where:
“All credit decisions are taken locally by people, not centrally by a computer. No bonuses are paid and no-one has a sales-target. When the whole firm out-performs, a contribution is made to a pooled fund which is invested on employees’ behalf. The fruits of success are distributed equally and gratification is deferred.”
Move Your Money believes we are at a tipping point. There is a real alternative to the big banks that is better for customers and better for the economy: building societies and the cooperative have seen a surge in new customers, as have smaller ethical banks and new peer to peer lending platforms.
Even the country’s most powerful regulators are waking up to the fact that top down reform can only take us so far. Ultimately, it is up to us as customers to move our money out of the big banks if we want to see lasting change.
If you want to put your money where your mouth is, (perhaps we should ask Andy where he keeps his?!), find out where you can move to now.