In a bid to regain the public’s trust in the banking system, the government has announced details of a kite-mark system, which it hopes will deliver the transparency which has been missing.
In recent years, the banking and financial services sector has been rocked by a series of scandals including the mis-selling of PPI, which it is still compensating customers for. This has led to a sharp decline in trust amongst the public, made worse by PR disasters such as the LIBOR-fixing debacle which recently came to light.
To try and put a halt to the rapidly declining trust in the sector, the Treasury has released the details of the new kite-mark initiative, which will provide customers with a guarantee that the product can be trusted.
The kite-mark symbol will mean that the product has no hidden costs or charges, no nasty surprises in the small print and no bonuses which rapidly vanish after you sign up. Any financial product bearing the kite-mark will guarantee that customers will be able to trust the product on offer and rely on the information provided.
The government is keen for the public to be able to make their own financial arrangements to fulfil their basic needs, such as savings accounts and life insurance, without fearing the consequences on signing on the dotted line.
Complex savings products which incorporate tiered levels of interest, or those with introductory bonus offers will not be allowed to participate in the kite-mark scheme. Consumer champions Which? said it was essential that customers were able to easily compare different products in order to get a ‘fair deal’.