Banks Beware!

Once upon a time the high street banks could count on lifetime loyalty from many of their customers, but a Fool survey suggests that may be changing.

The high street banks need to be careful as a Fool.co.uk survey suggests that a growing number of customers are ready to jump ship.

The survey of more than a thousand Fools found that, on average, four out of five customers of the 'Big Five' banks are primed to switch to one of the smaller banks if they need to. That's not good news for the big bank players -- HSBC, Royal Bank of Scotland, Barclays, Lloyds TSB and HBOS.

One in six potential defectors has been with the same bank for between six and 10 years, while one in three has remained loyal for over 20 years!

The survey also shows that people who have switched banks in the past are more likely to do so again. Also, two out of five people who have switched banks say they are now ready to leave again.

I was initially surprised when I saw these results but given the recent bad publicity over bank charges and substantial profits, perhaps it's not so surprising after all.

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