A lack of customer confidence is the biggest challenge facing the banking sector, according to a survey carried out by the Chartered Institute for Securities and Investment, five years after the collapse of Lehman Brothers, a U.S.-based global financial services firm.
Of nearly 650 respondents to the online survey, 52 percent pointed to a low level of confidence in banks being the No. 1 stumbling block to their continued recovery.
A further 24 percent of those taking part said over-regulation was the key issue for the industry, followed by insufficient controls (13 percent) and shortage of capital (11 percent).
“Trust is the principal challenge,” said one contributor to the survey. Another noted, “Banks are still looking for ways to profit at the expense of people who use their services and then complain when what should be classed as malpractice is restricted.”
However, others argued that banks are too constrained in the post-crisis era.
“After Lehman’s collapse, all regulation bodies have been more tough on banks, which is getting in the way of trading,” claimed a respondent.
Other comments included that banks are deterred from offering new products as they are “too scared of the potential damage” that may result “rightly or wrongly” from regulatory intervention.
The CISI is a professional body which sets examinations and offers qualifications for those working in the wealth management and capital markets industry. CISI has 40,000 members globally.