Savings industry 'suffering from loss of confidence'

The financial services industry must regain the trust of consumers if savings levels are to rebound, it has been claimed.

According to Tom Stevenson, investment director at Fidelity International, a lack of confidence in the sector following the banking crisis is partly to blame for historically low savings levels.

More needs to be done to ensure consumers' interests are at the forefront of future regulatory policy," he noted.

Mr Stevenson said there must also be fairer access to accounts, helping to encourage and facilitate a culture of long-term savings.

More transparent products and advice, and better choice and value, can stimulate an improvement in customer confidence, he added.

However, the low base rate may also have played a part in discouraging savings over the last year.

Since March 2009, the Bank of England has kept interest rates at 0.5 per cent in an attempt to encourage further consumer spending.

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2010-05-05 13:56:56 © Moneyextra.com