Table of Contents
Introduction
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- Abbreviations
Executive Summary
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- Putting the financial services industry in context
- Discouraging results for the financial services industry…
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- Figure 1: Extent to which consumers trust companies to treat them fairly, June 2014
- …but it’s not all bad news
- Scale and proximity matter
- Trust in different elements of the banking industry
- The closer you are, the more faith you have
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- Figure 2: Trust in different elements of the banking industry, June 2014
- Investigating different concepts of ‘trust’
- Few actively worry about the financial stability of their bank…
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- Figure 3: Investigating different concepts of trust, June 2014
- …as well as fraud and online systems’ insecurity
- Nearly two thirds trust their bank to get the basics right…
- …but only two in five trust their bank to have their best interest at heart
- Level of concern over the industry’s failings
- Bad publicity impacts consumer trust
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- Figure 4: Consumer concerns over various issues in the financial services industry, June 2014
- Effect of customer experiences on trust
- Interaction with the industry seems to generally increase trust
- Attitudes towards the financial services industry
- The issue of bankers’ pay strikes a chord with consumers
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- Figure 5: Attitudes towards the financial services industry, June 2014
- Consumers would like to see harsher punishment for financial misconduct
- Nearly 60% are unsure of whether they trust existing financial providers more than new entrants
- What we think
Issues and Insights
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- The generation gap in the financial services industry
- The facts
- The implications
- Greater interaction builds trust
- The facts
- The implications
- Consumers protest against introductory offers
- The facts
- The implications
Trend Application
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- Life Hacking
- Decline of Deference
- Mintel futures: Brand Intervention
Putting the Financial Services Industry in Context
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- Key points
- Survey background
- Discouraging results for the financial services industry …
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- Figure 6: Extent to which consumers trust companies to treat them fairly, June 2014
- …but it’s not all bad news
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- Figure 7: Extent to which consumers trust companies to treat them fairly, June 2014
- Scale and proximity matter…
- …but not all big companies are the same
- Mintel research shows that you don’t need a high street presence to be trusted
- Good customer service still goes a long way
- Young people are more likely to trust financial services…
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- Figure 8: Proportion of consumers who somewhat/strongly trust companies to treat them fairly, by age, June 2014
- …while people who are struggling financially are the least trusting
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- Figure 9: Proportion of consumers who somewhat/strongly trust companies to treat them fairly, by current financial situation, June 2014
Trust in Different Elements of the Banking Industry
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- Key points
- The financial services industry is not a homogenous whole
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- Figure 10: Trust in different elements of the banking industry, June 2014
- Proximity builds trust
- Trust in call centre staff seems variable
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- Figure 11: Trust in different aspects of the banking industry, June 2014
- Trust of the over-65s is strongly based on branch staff...
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- Figure 12: Trust in different aspects of the banking industry, by age, June 2014
- …while under-35s are likely to be more trusting of the regulators
- The impact of the financial crisis on trust
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- Figure 13: Trust in different aspects of the banking industry, by impact of the economic downturn on consumers, June 2014
Investigating Different Concepts of ‘Trust’
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- Key points
- ‘Trust’ can refer to different concepts
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- Figure 14: Investigating different concepts of trust, June 2014
- Few actively worry about the financial stability of their bank
- The majority trust their bank to protect them against fraud and keep their personal data safe
- Technology can be a double-edged sword
- Nearly two thirds trust their bank to get the basics right…
- …while only two in five trust their bank to have their best interest at heart
- Nationwide customers more likely to feel their bank will act in their best interests
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- Figure 15: Investigating different concepts of trust, by selected main bank account providers, June 2014
Level of Concern over the Industry’s Failings
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- Key points
- Excessive bank charges cause the greatest concern…
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- Figure 16: Consumer concerns over various issues in the financial services industry, June 2014
- …followed by the concern of theft or loss of personal data
- One in three are concerned over poor governance
- Mis-selling of PPI and other financial products still causes frustration
- Branch closures are a concern despite the rise of digital banking
- System failures are not far from people’s minds
- Media coverage on payday lenders is affecting the whole industry’s reputation
- The feeling of having no other choice but to trust prevails
Effect of Customer Experiences on Trust
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- Key points
- How much do customer experiences affect trust in the industry?
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- Figure 17: Consumer experiences with financial services, June 2014
- Interaction with the industry seems to generally increase trust
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- Figure 18: Extent to which consumers trust financial services companies to treat them fairly, by consumer experiences, June 2014
- Consumers affected by IT system failures are generally more distrustful
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- Figure 19: Investigating different concepts of trust, by consumer experiences, June 2014
- Victims of banking fraud are more likely to trust their bank to get the basics right
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- Figure 20: Consumer concerns over various issues in the financial services industry, by consumer experiences, June 2014
- More than 50% of people who have received financial advice from their bank trust it to have their best interest at heart
Attitudes towards the Financial Services Industry
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- Key points
- The issue of bankers’ pay strikes a chord with consumers
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- Figure 21: Attitudes towards the financial services industry, June 2014
- Consumers would like to see harsher punishment for financial misconduct
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- Figure 22: Attitudes towards the financial services industry, by age, June 2014
- Consumers continue to believe that retail banking should be ring-fenced
- Nearly three fifths consider bank charges unclear
- Nearly 60% are unsure of whether they trust existing financial providers more than new entrants
Appendix – Putting the Financial Services Industry in Context
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- Figure 23: Extent to which consumers trust companies to treat them fairly – Local shops, by demographics, June 2014
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- Figure 24: Extent to which consumers trust companies to treat them fairly – Supermarkets, by demographics, June 2014
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- Figure 25: Extent to which consumers trust companies to treat them fairly – Building societies, by demographics, June 2014
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- Figure 26: Extent to which consumers trust companies to treat them fairly – Travel companies, by demographics, June 2014
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- Figure 27: Extent to which consumers trust companies to treat them fairly – Banks, by demographics, June 2014
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- Figure 28: Extent to which consumers trust companies to treat them fairly – Solicitors, by demographics, June 2014
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- Figure 29: Extent to which consumers trust companies to treat them fairly – Mobile phone companies, by demographics, June 2014
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- Figure 30: Extent to which consumers trust companies to treat them fairly – Financial advisers, by demographics, June 2014
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- Figure 31: Extent to which consumers trust companies to treat them fairly – Insurers, by demographics, June 2014
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- Figure 32: Extent to which consumers trust companies to treat them fairly – Utility firms, by demographics, June 2014
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- Figure 33: Extent to which consumers trust companies to treat them fairly – Mortgage lenders, by demographics, June 2014
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- Figure 34: Extent to which consumers trust companies to treat them fairly – Investment firms, by demographics, June 2014
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- Figure 35: Extent to which consumers trust companies to treat them fairly – Estate agents, by demographics, June 2014
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Appendix – Trust in Different Elements of the Banking Industry
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- Figure 36: Trust in different elements of the banking industry – Staff at my local bank/building society branch, by demographics, June 2014
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- Figure 37: Trust in different elements of the banking industry – Call centre staff of my main bank/building society, by demographics, June 2014
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- Figure 38: Trust in different elements of the banking industry – My main bank/building society’s corporate culture and values, by demographics, June 2014
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- Figure 39: Trust in different elements of the banking industry – The people responsible for regulating the banking industry, by demographics, June 2014
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- Figure 40: Trust in different elements of the banking industry – Senior executives of my bank/building society, by demographics, June 2014
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- Figure 41: Trust in different elements of the banking industry – The way in which the overall banking industry operates, by demographics, June 2014
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Appendix – Investigating Different Concepts of ‘Trust’
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- Figure 42: Agreement with the statement ‘I trust that my bank will still be in business five years from now’, by demographics, June 2014
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- Figure 43: Agreement with the statement ‘I trust my bank to protect me against fraud’, by demographics, June 2014
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- Figure 44: Agreement with the statement ‘I trust that my bank’s online banking systems are secure’, by demographics, June 2014
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- Figure 45: Agreement with the statement ‘I trust that my bank keeps my personal information secure’, by demographics, June 2014
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- Figure 46: Agreement with the statement ‘If mistakes happen, I trust my bank to fix these quickly’, by demographics, June 2014
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- Figure 47: Agreement with the statement ‘I trust my bank not to make mistakes with my day-to-day banking transactions’, by demographics, June 2014
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- Figure 48: Agreement with the statement ‘I trust my bank to treat me fairly’, by demographics, June 2014
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- Figure 49: Agreement with the statement ‘I trust that my bank does not provide third parties with my personal information without my consent’, by demographics, June 2014
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- Figure 50: Agreement with the statement ‘I trust my bank to have my best interest at heart’, by demographics, June 2014
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- Figure 51: Agreement with the following statements, by current account providers – Main account, June 2014
- Figure 52: Agreement with the following statements, by current account providers – Main account, June 2014 (continued)
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Appendix – Level of Concern over the Industry’s Failings
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- Figure 53: Consumer concerns over various issues in the financial services industry, by demographics, June 2014
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- Figure 54: Consumer concerns over various issues in the financial services industry, by demographics, June 2014
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Appendix – Effect of Customer Experiences on Trust
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- Figure 55: Agreement with the following statements, by consumer experiences with financial services – Made a claim on an insurance policy, June 2014
- Figure 56: Agreement with the following statements, by consumer experiences with financial services – Applied for a loan or credit card, June 2014
- Figure 57: Agreement with the following statements, by consumer experiences with financial services – Applied for a mortgage, June 2014
- Figure 58: Agreement with the following statements, by consumer experiences with financial services – Got financial advice from my bank, June 2014
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- Figure 59: Agreement with the following statements, by consumer experiences with financial services – Got advice from a financial adviser, June 2014
- Figure 60: Agreement with the following statements, by consumer experiences with financial services – Paid bank charges for an overdraft, June 2014
- Figure 61: Agreement with the following statements, by consumer experiences with financial services – Paid charges for late payments, June 2014
- Figure 62: Agreement with the following statements, by consumer experiences with financial services – Switched my main bank/building society, June 2014
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- Figure 63: Agreement with the following statements, by consumer experiences with financial services – Switched my car/home insurance provider, June 2014
- Figure 64: Agreement with the following statements, by consumer experiences with financial services – Experienced fraud on a card/bank account, June 2014
- Figure 65: Agreement with the following statements, by consumer experiences with financial services – Lost a debit/credit card or had it stolen, June 2014
- Figure 66: Agreement with the following statements, by consumer experiences with financial services – Struggled to use my payment card or access my online/mobile banking services due to system problems, June 2014
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- Figure 67: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Made a claim on an insurance policy, June 2014
- Figure 68: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Applied for a loan or credit card, June 2014
- Figure 69: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Applied for a mortgage, June 2014
- Figure 70: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Got financial advice from my bank, June 2014
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- Figure 71: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Got advice from a financial adviser, June 2014
- Figure 72: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Paid bank charges for an overdraft, June 2014
- Figure 73: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Paid charges for late payments, June 2014
- Figure 74: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Switched my main bank/building society, June 2014
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- Figure 75: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Switched my car/home insurance provider, June 2014
- Figure 76: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Experienced fraud on a card/bank account, June 2014
- Figure 77: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Lost a debit/credit card or had it stolen, June 2014
- Figure 78: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Struggled to use my payment card or access my online/mobile banking services due to system problems, June 2014
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Appendix – Attitudes towards the Financial Services Industry
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- Figure 79: Agreement with the statement ‘I object to bonuses received by the senior executives in the banking sector’, by demographics, June 2014
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- Figure 80: Agreement with the statement ‘The punishment of individuals for financial misconduct is not severe enough’, by demographics, June 2014
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- Figure 81: Agreement with the statement ‘The punishment of financial institutions for financial misconduct is not severe enough’, by demographics, June 2014
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- Figure 82: Agreement with the statement ‘The trading/investment services of banks should be kept separate from their customer/retail banking services’, by demographics, June 2014
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- Figure 83: Agreement with the statement ‘Bank charges are not transparent enough’, by demographics, June 2014
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- Figure 84: Agreement with the statement ‘Building societies tend to be more trustworthy than banks’, by demographics, June 2014
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- Figure 85: Agreement with the statement ‘I trust existing companies in the financial services industry more than new entrants’, by demographics, June 2014
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