Would you trust banks that are 'new' and lack a reputation?

Jlawson118

I know as long as banks are backed up by the FSCS then they're pretty much secure, but I'm just curious as to what people think out there of these sorts of banks that are just cropping up out of nowhere, like M&S Bank or Metro Bank etc..?

I know M&S have had their credit card for many years and it's known as one of the most rewarding cards out there, and now their current accounts are becoming a big thing. I know M&S Bank has operated since the 80s but it's only really become a big thing recently and is linked with HSBC.

But the most recent and modern one I know of is Metro Bank, founded in 2010. But would you really trust a six year bank? The main ones are classed as HSBC, Lloyds and the others that have been around for a very long time, so it's shown they're reputable. Do they have the same reputation as the most recent ones?

And I apologise if I'm saying anything wrong here, but I'm curious as to people's opinions out there, and the way you look at a bank and their age and reputation?

Doctor_Duke

M&S Bank is actually a subsidiary of HSBC as for whether so called long history banks are more trustworthy. Lloyds and RBS NatWest have had significant bailouts..... As for HSBC suggest you google some of their fines...

Thrugelmir

Jlawson118 wrote: »

I know as long as banks are backed up by the FSCS then they're pretty much secure,

Opening a bank requires a licence and adherence to the strictest requirements. What more do you want to know? People don't open banks for fun. They've serious long term intent as takes time to build scale. .

Jlawson118

Doctor_Duke wrote: »

M&S Bank is actually a subsidiary of HSBC as for whether so called long history banks are more trustworthy. Lloyds and RBS NatWest have had significant bailouts..... As for HSBC suggest you google some of their fines...

I know M&S is a subsidiary of them, I'm with First Direct who are also a subsidiary of HSBC and so they're a little newer and I think they are an amazing bank.
But your answer couldn't be any more true, many of the banks have had bail outs and many of them probably will continue to

System

First Direct is a division of HSBC Bank not a subsidiary.
A little research into the difference between a division & subsidiary might help.

Jlawson118 wrote: »

I know M&S is a subsidiary of them, I'm with First Direct who are also a subsidiary of HSBC and so they're a little newer and I think they are an amazing bank.
But your answer couldn't be any more true, many of the banks have had bail outs and many of them probably will continue to

Anthorn

Jlawson118 wrote: »

I know as long as banks are backed up by the FSCS then they're pretty much secure, but I'm just curious as to what people think out there of these sorts of banks that are just cropping up out of nowhere, like M&S Bank or Metro Bank etc..?

I know M&S have had their credit card for many years and it's known as one of the most rewarding cards out there, and now their current accounts are becoming a big thing. I know M&S Bank has operated since the 80s but it's only really become a big thing recently and is linked with HSBC.

But the most recent and modern one I know of is Metro Bank, founded in 2010. But would you really trust a six year bank? The main ones are classed as HSBC, Lloyds and the others that have been around for a very long time, so it's shown they're reputable. Do they have the same reputation as the most recent ones?

And I apologise if I'm saying anything wrong here, but I'm curious as to people's opinions out there, and the way you look at a bank and their age and reputation?

There are a new breed of banks upcoming and that's the new Fintech banks which work in a mobile app and nothing more than that. At least that's the theory. We don't know about the practise yet because those which are up and running already such as Monzo don't yet offer a full banking service. Starling Bank looks to be the furthest ahead with FSCS protection and its everyday current account and loans while Tandem Bank which says it's building a "good bank" is keeping it's products pretty much a secret at the present time.

Will I trust them? Well, yes. But whether I trust them with my salary is another matter! If I did trust them that far and they messed up I'll untrust them pretty quickly.

https://www.starlingbank.com/
https://tandem.co.uk/
https://monzo.com/home/