Britain’s top banks are “rigging the system” against consumers and the government must do more, a fintech chief executive has claimed.
Financial wellbeing platform Wagestream found 90 per cent of Brits believe they should be saving money but nearly half fear they won’t save a single penny in 2025.
The fintech’s ‘State of Financial Wellbeing Index’ exposed a fractured relationship between banks and their customers, who were plagued with a lack of financial education.
Indeed, 69 per cent of respondents believe their bank does not have their best interests or care about their financial and mental health.
Wagestream’s founder, Peter Briffett, told City AM: “The government’s response to this remains woefully inadequate.
“This lack of action, even with sustained public and media attention on the UK’s savings crisis, shows a concerning indifference to the financial wellbeing of working Brits.”
Chancellor Rachel Reeves met with executives of Britain’s top banks at the beginning of February to discuss the government’s economic growth agenda.
Since entering office, Reeves has spearheaded the mission to deregulate the UK in order to boost growth, but now is facing calls to balance this with protection of consumers.
Employers left to ‘plug the gap’
Briffett added: “It’s clear that acknowledging the problem isn’t enough; we need concrete measures to empower people to build secure financial futures.”
He said the responsibility was now with employers to “plug the gap” left by banks and the government through the likes of workplace saving schemes.
The research described Brits as trapped in a “Savings Stockholm Syndrome,” as respondents recorded “loyalty” to their provider, despite “knowing they aren’t giving them the best possible deal”.
However, 91 per cent said they still choose to stick with their bank and have no plans to switch accounts.
‘It won’t make much difference’ ranked the top reason for respondents not switching at 27 per cent.
Briffett said: “The working population is desperate to save, but the banks are doing the bare minimum to help.
“With millions of hard-working people unsure of their own saving rates, and the banks passing pitiful interest rates on their most popular and accessible accounts, the system isn’t just broken – it’s rigged against the customer.”