Table of Contents
Executive Summary
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- The market
- FCA aiming to transform culture and tackle data misuse
- Companies and brands
- Just 19% trust financial services brands
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- Figure 1: Agreement with ‘A brand that I trust’ for brands in the financial services, beauty and personal care, drink, retail and food sectors, November 2015-May 2018
- The Post Office is the most trusted financial services brand
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- Figure 2: Top ranking of brands in the financial services sector, by agreement with “A brand that I trust”, November 2015-May 2018
- The Consumer
- Building societies the most trusted financial services companies
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- Figure 3: Extent to which consumers trust companies to treat them fairly, August 2018
- Overcomplicated financial information the main factor causing distrust
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- Figure 4: Factors which contribute to a lack of trust, August 2018
- Customer service still plays a key role
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- Figure 5: Important features for building trust, August 2018
- Online-only banks behind tech firms in terms of trust and data security
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- Figure 6: Trust in financial services companies to hold personal and financial data securely, August 2018
- Consumers undecided on whether trust is improving
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- Figure 7: Attitudes towards trust and financial services providers, August 2018
- A quarter would trust alternative providers
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- Figure 8: Attitudes towards trust and financial services providers, August 2018
- What we think
Issues and Insights
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- Simplify financial information to increase trust
- The facts
- The implications
- Embracing Open Banking and newer challengers will drive greater trust
- The facts
- The implications
The Market – What You Need to Know
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- FCA looking to tackle both culture and data misuse
- ‘Unreadable’ financial content causes trust issues
Market Environment
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- Data misuse top of FCA agenda
- UK watchdog opening more cases than before…
- …and looking to address bank IT failures
- FCA looking to transform culture
- RBS Global Restructuring Group escapes punishment
- ‘Unreadable’ financial services websites contributing to lack of trust
- Amazon looking to increase its influence in financial services
Companies and Brands – What You Need to Know
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- Just 19% trust financial services brands
- The Post Office is the most trusted financial services brand
Trust and Financial Services Brands
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- Just 19% trust financial services brands
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- Figure 9: Agreement with ‘A brand that I trust’ for brands in the financial services, beauty and personal care, drink, retail and food sectors, November 2015-May 2018
- Post Office the only brand with greater than 50% trust
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- Figure 10: Top ranking of brands in the financial services sector, by agreement with “A brand that I trust”, November 2015-May 2018
- Non-traditional lenders dominate brands with the lowest trust
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- Figure 11: Bottom ranking of brands in the financial services sector, by agreement with “A brand that I trust”, November 2015-May 2018
The Consumer – What You Need to Know
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- Building societies and banks the most trusted financial services companies
- Ownership leads to increased levels of trust
- Overcomplicated financial information the main factor causing distrust
- Customer service still plays a key role
- Online-only banks behind tech firms in terms of trust and data security
- Consumers undecided on whether trust is improving
- A quarter would trust alternative providers
Financial Services Industry in Context
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- Building societies and banks lead the way for financial services companies
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- Figure 12: Extent to which consumers trust companies to treat them fairly, August 2018
- Investment firms have the lowest trust rating in financial services
- Younger generation more likely to trust financial services providers
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- Figure 13: Proportion of consumers who trust companies to treat them fairly, by age, August 2018
- Well-off consumers more likely to trust brands
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- Figure 14: Proportion of consumers who trust companies to treat them fairly, by financial situation, August 2018
Effect of Ownership on Trust
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- Ownership drives trust
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- Figure 15: Proportion of consumers who trust mortgage lenders and investment firms to treat them fairly, by product ownership, August 2018
- Increased product ownership leads to greater levels of trust
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- Figure 16: Proportion of consumers who trust financial services providers to treat them fairly, by number of financial products owned, August 2018
- More trust in insurers among owners of health and life insurance
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- Figure 17: Proportion of consumers who trust insurance companies to treat them fairly, by product ownership, August 2018
Factors Contributing towards Distrust
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- Half feel misleading terms and conditions have led to distrust
- 30% blame poor customer service and negative media coverage
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- Figure 18: Factors which contribute to a lack of trust, August 2018
Building Trust in Financial Services
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- Clear financial information the key
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- Figure 19: Important features for building trust, August 2018
- Customer service still a major factor
- Problem resolution is an opportunity to build trust
- Regular updates resonate with investors
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- Figure 20: Importance of regular product updates and reminders in building trust, by product ownership, August 2018
- A one-size-fits-all approach is insufficient
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- Figure 21: Repertoire of important features for building trust, August 2018
Trust and Data Security
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- Majority trust banks to look after their personal or financial data
- Only one in four would trust an online-only bank
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- Figure 22: Trust in financial services companies to hold personal and financial data securely, August 2018
- Younger Millennials place more faith in tech companies…
- …while older generations are more trusting of pension providers
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- Figure 23: Proportion of consumers who trust pension providers, technology firms and online-only banks to hold their personal and financial data securely, by generation, August 2018
Attitudes towards Financial Services Providers
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- One in four do not trust their financial services providers to be fair, open and honest
- Consumers split as to whether trust is improving
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- Figure 24: Attitudes towards trust and financial services providers, August 2018
- Increased faith among those with greater ownership
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- Figure 25: Agreement with statements about trust and financial providers, by number of financial products owned, August 2018
Trust in Alternative Providers
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- A quarter would trust an alternative financial services provider
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- Figure 26: Attitudes towards trust and financial services providers, August 2018
- Greater receptiveness among wealthier households
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- Figure 27: Agreement with statements about trust and financial providers, by household income, August 2018
- Comfortable 18-34-year-olds the most likely to trust a large tech firm
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- Figure 28: Trust in large tech firms to manage financial services – CHAID – Tree output, August 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- CHAID Methodology
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