According to the Cass Business School and finance research company New City Agenda, the UK’s “toxic” and “aggressive” culture will take generations to change. Following the series of scandals involving the UK’s big four banks, the total cost of the UK industry’s misgivings have reached more than £38.5 billion in fines and redresses in 15 years.
Conservative MP and New City Agenda co-founder David Davis said “A toxic culture which was decades in the making will take a generation to turn around.”
Between 2008 and 2014, banks had received 21 million complaints. At least £27 billion of the total redress had been credited to PPI complaints alone.
Archbishop of Canterbury Justin Welby said “It is clear that much more needs to be done by all stakeholders for trust to be restored in our financial institutions.”
The Cass Business School and New City Agenda report indicates that banks have culture changes programmes under way. Cass Business School Professor and Report Author Andre Spicer said “Regulation has improved, and big banks have all implemented new programmes to improve their cultures,” he said.
“Smaller banks and challenger banks are beginning to offer the customer real choice, and often have healthier cultures.”
“Many culture-change initiatives are fragile, and their success is not ensured. It’s clear to us that much work still needs to be done,” he added.