This month saw the launch of Move Your Money UK, a national grassroots campaign to spread the message that we, as individuals, can help to build a better banking system through our buying power. The campaign follows a highly successful movement in the US which has led to over 10 million people moving their money into local financial institutions.
It is clear that the banks have failed us. The financial crisis of 2008 saw the biggest tax payer bailout in history, and since then the UK has experienced the worst recession in living memory. Instead of helping to build a productive and stable economy, the major high street banks have and continue to persistently use their enormous power to steer the economy through their lending decisions to the detriment of society.
Move Your Money UK believes that top down reform can only take us so far; the banks won’t change of their own accord and politicians and regulators are too narrowly focused on maintaining the status quo.
Banks rely on the deposits of ordinary savers, so when you choose where you keep your money, you are choosing between supporting business as usual or taking a simple but powerful step towards a better banking system and a better future. By moving your money you can directly support an ethical and socially useful bank, and send a message about the sort of society and economy you want to see. And one you’d rather not.
Though most people in the UK currently bank with the “Big 5” – Barclays, HSBC, Lloyds TSB, RBS and Santander (and their subsidiaries) – we aren’t reliant on them. There is a flourishing group of financial providers that offer a safe and credible alternative. These include credit unions, building societies, banks with strong ethical commitments and community development finance institutions. They have ownership structures and business strategies that are more geared towards benefiting people, communities and the environment.
Move Your Money UK aims to provide people with the information and confidence they need to make informed decisions regarding the types of financial institutions they want to support. We also hope to strengthen the ethical banking sector, and broaden and enhance the debate on financial reform.
The first Move Your Money UK event took place outside a Barclays branch in London on 10th February, the day that Barclays announced it’s annual results and a bonus pool of over £2bn. Members of the public turned up for the ‘Better Bail-out’ to close accounts, remove their money and write letters of complaint. Several more events will follow this month to coincide with the bonus announcements of the other major High St banks – RBS, HSBC and Lloyds TSB.
Bonuses might be down this year, but the sums being paid out are still multiple times the average wage, and they are symptomatic of a system that is acting in the interests of a few at the cost of wider society. Among the long list of damning findings, research by Ethical Consumer Magazine has uncovered evidence that, for years, the big banks have been paying excessive bonuses to executives, avoiding tax, investing unethically, and providing poor customer service. If your money is sitting with any of the major high street banks, then it’s helping to fund these practices.
Find out more about moving your money and how to get involved with events this month and during ‘Move Your Money Month’ in March by visiting our website www.moveyourmoney.org.uk, our Facebook page “Move Your Money UK” or follow us on Twitter @moveyourmoneyuk.
By Marloes Nicholls
