Customers trust financial services from supermarkets more, study indicates

Thu, 09 Aug 2007

Supermarkets could soon be attracting more and more customers through their financial services , it has emerged.

Research by Fool.co.uk has found consumers trust supermarkets to deliver them better value for money on finance products than banks.

A survey of Fool.co.uk readers found that 43 per cent believe supermarkets will deliver better financial services than other companies and 50 per cent of consumers want supermarkets to offer more financial services and products.

Head of personal finance at the website David Kuo noted that supermarkets began by offering store cards and quickly expanded into credit cards and personal loans .

"Supermarkets are as clever at marketing travel insurance policies as they are at selling travel sweets. Additionally, with their low running costs, supermarkets can easily undercut other providers. They are already pinching customers from banks and in time could steal even more," he added.

The findings estimate that as many as 17 million customers could "jump ship" to financial services offered by supermarkets.

Boasting two million members, Fool.co.uk is an independent financial website aiming to help people think and interact with money.

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