More choice for borrowers ‘is a good thing’

Consumers would benefit from a large number of alternatives to high street banks, it has been suggested.

Personal finance expert Rumina Hassam of uSwitch.com said that a wide choice gives people the ability to “vote with their feet”, which encourages banks to do more to attract and hold on to customers and increases competition.

Having more players in the market “is always of benefit to customers”, she added.

Ms Hassam made her comments following a new YouGov poll commissioned by Marketing Week, which indicated that high street banks are still the most popular choice among consumers looking for financial products.

Of those surveyed, 65.2 per cent said they would not consider obtaining credit cards, current accounts or similar services from supermarkets and other non-financial brands.

Another question found that 20.28 per cent would consider new facilities from Tesco Financial Services, making it the most popular alternative provider out of list including Sainsbury’s, M&S Money, O2 and Pizza Express.

By Chris Trimble