Just over a third of adults feel safer investing with a mutual, according to research by Foresters Friendly Society. However, about a third aged between 18 and 24 years old said they favoured banks.
The general secretary for the Association of Friendly Societies said mutuals therefore need to rethink the way they promote themselves and consider investing in activity that appeals to a younger audience, such as sponsorship.
Friendly societies offer financial products such as savings, pensions and insurance but the model relies on smaller, safer returns, rather than impressive profit margins, which friendly societies say makes them less vulnerable in a recession.
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