Alternatives to high street banks 'good for consumers'

The emergence of more alternatives to high street banks is good news for consumers.

This is according to Rumina Hassam, personal finance expert at uSwitch.com, who suggested that the entrance of other financial service providers into the market means there is more competition.

She said: "It is definitely a good thing for consumers simply because they can vote with their feet and move away from places they may have banked with in the past."

In addition, as they fight to keep hold of business, the traditional lenders will offer better deals, she added.

Ms Hassam claimed that more people moved away from the major high street lenders last year as a result of the bank runs caused by the economic downturn.

This enabled smaller banking institutions such as the supermarket financial service providers to get a "foot in the door", the expert stated.

However, research commissioned by Marketing Week revealed that almost two-thirds of people recently polled would not consider taking out financial products, such as credit cards, from supermarkets and other non-financial services brands.
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11/08/2009 11:59

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