The deficiency of assurance in financial institutions in Poland is becoming increasingly common. Although banks play a key function in the economy, and banking services are widely available, many inactive exhibit skepticism towards the industry. In 2023 Almost 40% of Poles declared that he did not trust the banks, and that the number grew year by year. It is worth considering what is behind this Common and why confidence in banks Poland is so low. What factors affect the negative perception of the banking sector by Poles?
Afflict of frank loans
One of the main reasons why Poles do not trust banks is accrual of franc creditswhich exploded in the early 21st century. In 2000-2010 many people took mortgage loans in Swiss francshoping for a favourable exchange rate. However, 2008, erstwhile the course of the franc increased significantly, many borrowers found themselves in financial difficulties. As a result, hundreds of thousands of Poles were burdened with loans, whose repayment became hard to lift. The bank's actions in this case were widely criticised, and deficiency of adequate protection for customers led to increased mistrust to financial institutions.
Data from the Financial Supervision Commission (KNF) show that the estimated value of the frank loans granted by Polish banks is about PLN 250 billion. As a consequence of the problems associated with these loans, any people lost their life savings and others had to borrow further to pay off their erstwhile liabilities. For many Poles it was a turning point that affected negative perception of banks.
Hidden fees and commissions
Hidden fees and high commissions This is another reason why Poles do not trust banks. Although banks offer a wide scope of services, including individual accounts, loans or deposits, customers frequently face additional costs that they are not sufficiently informed about. In studies performed by UOKiK (Office of Competition and Consumer Protection) in 2022 until 65% of consumers he complained about the deficiency of transparency regarding commissions and fees. The advanced cost of global transfers, account fees or hidden fees related to loans and loans are just any of the charges that frequently appear in the public opinion.
These ambiguities lead to the belief that banks only aim at maximizing your profits At the expense of customers, which leads to further erosion of trust. In particular, customers who are not full aware of all the costs of banking products may feel cheated.
Low savings interest rate
Low deposit interest and savings is another component that affects the perception of banks in Poland. Although interest rates have increased in fresh years, the interest rate on bank deposits is inactive very low, which results in the savings of Poles not making crucial profits. In 2023 the average interest rate on fixed-term deposits was 2.5-3% per year, as at inflation 5-6% means a real failure of savings. For many people who accumulate savings on bank deposits, low investment profitability is 1 of the reasons why they start looking for alternate forms of savings, specified as investment funds is real estate.
Complexity of bank products
The distrust of Poles to banks besides increases complexity of financial productswhich are offered by banking institutions. Mortgage loans, loans, investment products – all these instruments are complex and require in-depth cognition of the financial market. Many Poles do not full realize the terms of loans or loans, which leads to discontent erstwhile unexpected costs or problems arise with the regulation of liabilities. In addition, banks frequently offer products that do not meet the real needs of customers, which may consequence in erroneous financial decisions.
Customer service problems
Bad experience with customer service is another crucial component affecting the perception of banks. In studies performed by Financial Ombudsman in 2022, 35% of customers complained about mediocre service quality, long waiting times for answers and difficulties in solving problems. Many feel that banks treat them as just a origin of income, not as customers who deserve reliable aid and support.
The number of alternate financial solutions is increasing
New technologies have emerged on the financial marketplace in Poland, which are becoming an alternate to conventional banks. Fintechy, Internet banks and payment platforms frequently offer lower fees and simpler solutions, which attracts customers. With these alternatives, Poles start to avoid conventional banks, choosing more innovative solutionswhich offer better financial conditions and simpler procedures.
Continued here:
Why do Poles not trust banks? actual Reasons
