Newsflash: Consumers don’t trust large banks

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Consumers trust community or regional financial institutions more than large national banks – not surprising given the recent failure of several behemoth financial institutions.

The BAI & Finacle Banking Confidence Index surveyed 2,501 consumers across the nation – to measure consumer sentiment about retail banking.

Credit unions rated the highest in consumer trust, at 83 percent, with community banks next at 82 percent. Regional banks garnered a 63 percent trust rating, and large national banks were last with 53 percent.

When it comes to managing personal finances, although 65 percent of consumers surveyed say they trust their primary financial institution – only 33 percent felt that their primary financial institution understood their financial goals.

On a brighter note, 40 percent of those surveyed said the overall economy of the nation will improve in six months. Meanwhile, however, to weather the economic storm, 34 percent have postponed medical or dental care, 60 percent changed eating habits and 71 percent cut back on entertainment spending.