Unlike during the great recession over a decade ago, trust in banks has improved during the Covid-19 pandemic. In April 2020 the J.D. Power Trust Index (1,000 point scale) was at 821, up 14 points from January 2020 and 13 points higher from April 2019.
The J.D. Power Bank Trust index is based on ratings from over 20,000 bank customers each quarter. The index consists of 7 questions in which customers rate their primary:
During the pandemic, banks scored higher on all 7 questions, with the greatest increase in “puts the interest of customers first”. While many branches were closed or had limited availability, customers seem to have recognized the efforts of their bank and rated their banks higher on this metric as well. Ease of doing business during the pandemic was more dependent on digital than at any time before and customers also rated their bank higher “provides reliable technology”.
How will banks balance the growing adoption of Bitcoin with their net-zero climate pledges? The largest banks have announced they will target net-zero greenhouse gas emissions by 2050, while at the same time showing more acceptance of Bitcoin. With Bitcoins high energy consumption, this may be a difficult balancing act. Interesting article by Andrew Ross Sorkin on Bitcoin’s Climate Problem.
Several of the hottest financial trends are taking place at SoFi. What could be better than news with a SPAC and a FinTech? In January the online SoFi merged with Social Capital, a special purpose acquisition company (SPAC). Now in March, SoFi announced the acquisition of a small bank with 3 branches, Golden Pacific Bank, in pursuit of a national bank charter. FinTechs are intent on getting bank charters one way or another.
Monzo has landed in the U.S. I have never had to get on a wait list to open a bank account or been in a beta banking program, but here I go. In the U.S. Monzo is partnering with Sutton Bank.