Member Article

No bonuses for "immoral and dishonourable" bankers says new survey

Banks are still regarded as “immoral and dishonourable” according to a survey by P2P lender ArchOver, and have not atoned for their sins.

As bank bonus season is upon us, an overwhelming majority (76%) of the 1,200 respondents to a survey by P2P lender ArchOver said that bankers should waive their bonuses.

The survey found that 67% of people feel banks have behaved immorally, 73% think senior bank executives should cut their salaries and 76% believe banks should pay more tax.

The top reasons cited for bankers’ unpopularity are mis-selling financial products and market manipulation (73%), followed closely by having caused the financial crisis through irresponsible lending (69%).

76% of respondents who say banks have a moral obligation to society also say they could fix their reputation by suspending big bonuses to staff and stopping tax avoidance measures. 73% say salaries to top executives need to be lowered.

Furthermore, 63% of respondents think that banks who have become reluctant to lend money should be more liberal towards SMEs with potential.

According to the research, bankers are not that much more popular than cold-call salespeople, traffic wardens, bailiffs, and politicians. They are even more unpopular than estate agents, journalists and reality TV stars.

63% of people also say banks should lend liberally to SMEs with potential.

Angus Dent, CEO of ArchOver said: “Almost six years after the financial crisis, we’re continuing to see a lot of intense public anger towards the banking industry.

“Taxpayer funded bailouts and a string of controversies from mis-selling scandals to Libor and Forex rigging have played their part in ruining the public perception of the big banks.

“The fact that pay for bankers has continued to be so generous while pay has stagnated elsewhere in the economy has only heightened the public’s anger.

“Small businesses have been the big losers because the banks have starved them of credit in the process of rebuilding their balance sheets after the financial crisis.

“Fortunately, businesses and consumers alike can now vote with their feet and avoid dealing with the banks by using peer-to-peer lending platforms instead, which enable businesses to borrow directly from savers who are looking for higher returns than those available from the banks.

“Marketplace Funders like ArchOver cut out the banks and enable those with capital to lend it for a healthy return to the businesses that need it to grow and create jobs.”

This was posted in Bdaily's Members' News section by Clare Burnett .