Half of new homeowners dissatisfied by their bank’s handling of Covid-19

A fifth (19%) of those surveyed said they have lost faith in their bank due to the poor support it has provided during Covid-19. This figure rises to 50% among those who have bought a property in 2020.

A quarter (25%) of current homeowners feel their banks have not been proactive in providing advice to help them manage their finances during the pandemic. A similar number (23%) plan to transfer some or all of their money to another bank or financial services firm in the coming 12 months.

31% of banking customers are frustrated by their bank’s reliance on chatbots and automated services and 36% of homeowners are worried their local bank branch could shut in the coming months.

Alpa Bhakta, CEO of Butterfield Mortgages, said: “Homeowners across the UK are clearly frustrated by the way they have been treated by their banks during the pandemic, and this has led to a confidence crisis.

“There’s no denying that Covid-19 has posed some significant challenges for banks, large and small. Nonetheless, today’s research shows that some firms have struggled when it comes to delivering the same level of customer service experienced before the pandemic.

“During these difficult times, banks cannot overlook the importance of delivering the same high standard of professional services. If they fail to adapt their services to cater for the 'new normal', there is a risk they could lose customers to rival firms.”