American bank customers are concerned that overregulation of the banking industry will lead to restricted access to credit.
A poll conducted earlier this month by Morning Consult for the American Bankers Association found a high level of satisfaction among the 4,423 adult participants with 87% satisfied or very satisfied with their primary bank and 96% rating its customer service as good or very good.
Around eight in ten respondents said they feel their money is safe with their bank, that the fees they are charged are transparent, and that the industry is highly competitive. Almost nine in ten believe their bank helps protect them from fraud and scams.
“This national survey demonstrates that banks across the country continue to meet their customers’ needs and exceed their expectations in today’s highly competitive financial services marketplace,” said Rob Nichols, ABA president and CEO.
Last month, the Consumer Financial Protection Bureau said that large banks are offering worse credit card terms and interest rates than small banks and credit unions, regardless of credit risk. This, it says can cost the average consumer $400-500 in additional annual interest.
“Our analysis found that the largest credit card companies are charging substantially higher interest rates than smaller banks and credit unions,” said CFPB director Rohit Chopra. “With over $1 trillion in credit card debt outstanding, the CFPB will be accelerating its efforts to ensure that consumers can access better rates that can save families billions of dollars per year.”
But the ABA’s chief executive hit back at the bureau’s statement.
“As the CFPB continues to make misleading statements about the competitiveness and fairness of our industry, this new data shows the disconnect between the Bureau and the consumers they supposedly represent.”
When asked about regulation of the U.S. banking industry, most indicated they do not want to lose access to credit card reward programs due to government regulatory changes, and 68% believe that given the economic challenges facing the country, including inflation and slowing growth, this is not the time to add additional regulatory requirements that will restrict bank lending.
Most respondents also feel that there should be assessment of the overall impact when several government agencies propose banking policy changes at the same time.
“The survey results should raise a red flag to regulators as they look to move forward with a tsunami of new rules for banks that will make it harder for institutions of all sizes to support their customers, clients and communities,” said Nichols. “Just as ABA has warned regulators, Americans understand and appreciate the risk of unintended consequences, and agree that the agencies should conduct a thorough cumulative impact analysis before moving forward with major rule changes.”
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