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The Role of Trust in Financial Services - UK - November 2012

INTRODUCTION
EXECUTIVE SUMMARY
 TRUST ACROSS DIFFERENT INDUSTRY SECTORS
It’s easier for smaller businesses to build trust
Figure 1: Extent to which consumers trust companies to treat them fairly, August 2012
Sizeable gap in trust between banks, insurers and investment firms
People don’t always trust “banks”, but they do trust “my bank”
Figure 2: Trust in different aspects of the banking industry, August 2012
 UNDERSTANDING WHAT TRUST MEANS
People trust that their bank is financially secure…
Figure 3: Investigating different elements of trust, August 2012
…and NatWest customers show that people are prepared to forgive mistakes
Trust in the ‘softer’ elements of banking is much less robust
Figure 4: Trust in bank and building society staff, August 2012
 THE IMPACT OF BAD PUBLICITY ON CONSUMER TRUST
High awareness of past financial scandals…
…but the level of concern varies widely
Figure 5: Concern over various elements of the financial services industry, August 2012
 BUILDING SOCIETIES AND TRUST
Most people appreciate there is a difference between banks and building societies…
…and the building societies are seen as being much more trustworthy
Figure 6: Opinion on the relative qualities of banks and building societies, August 2012
 WHAT WE THINK
ISSUES IN THE MARKET
What does “trust” mean?
Is there a difference between “banks” and “my bank”
Is there a generation gap when it comes to trust in the financial services industry?
What impact does mis-selling have on levels of trust?
Does trust even matter in today’s market?
What impact does a high street network have on consumer trust?
TREND APPLICATION
Carnivore, Herbivore... Locavore
Moral Brands
2015 trend: Old Gold
PUTTING THE FINANCIAL SERVICES INDUSTRY IN CONTEXT
Key points
Small is beautiful?
Figure 7: Extent to which consumers trust companies to treat them fairly, August 2012
Naming the high achievers
Amazon proves it’s possible to trust someone you’ve never met
Not as bad as the banks might have expected…
Figure 8: Extent to which consumers trust companies to treat them fairly, August 2012
…but insurers and investment firms are viewed with deep suspicion
A lack of trust undermines the core appeal of insurance
The impact of the financial crisis on trust…
…and on the perception of competence
The impact of age on trust
People who are struggling are the least likely to trust the industry
TRUST IN DIFFERENT ELEMENTS OF THE BANKING INDUSTRY
Key points
‘The financial services industry’ isn’t a homogenous whole
Figure 9: Trust in different aspects of the banking industry, August 2012
The closer you are, the more faith you have
Building trust through a high street presence
The split between ‘banks’ and ‘my bank’ comes to the fore again
Figure 10: Trust in different aspects of the banking industry, August 2012
‘A fish rots from the head down’…
…but people don’t trust the regulators any more than the bankers
Older people’s trust is based on branch staff
Figure 11: Proportion who trust different elements of the banking industry, by age, August 2012
Further evidence that banks aren’t supporting struggling customers
Figure 12: Proportion who trust different elements of the banking industry, by income and financial situation, August 2012
WHAT DOES ‘TRUST’ MEAN?
Key points
Very few worry about the financial stability of their bank…
Figure 13: Investigating different elements of trust, August 2012
…and almost all trust their bank to get the basics right…
…but three in ten aren’t sure they can rely on their bank to treat them fairly
Nationwide strong on trust…
Figure 14: Investigating different elements of trust, by main bank account provider, August 2012
…while NatWest shows that people will forgive occasional lapses
TRUST IN BRANCH STAFF
Key points
Branch staff – the acceptable face of the financial services industry?
Figure 15: Trust in bank and building society staff, August 2012
Trust drops when it comes to advice and customer-centricity
Trust spans different social and economic groups
AWARENESS AND UNDERSTANDING OF INDUSTRY FAILINGS
Key points
Widespread awareness of industry issues…
Figure 16: Awareness of complaints about financial services industry practices, August 2012
…even if they’re not totally sure about the details
It’s pay, not ‘casino banking’ that really grates
Is ‘the current economic crisis’ the banks’ biggest failing?
But it’s not all bad
LEVEL OF CONCERN OVER INDUSTRY FAILINGS
Key points
Excessive bank charges are the greatest concern…
Figure 17: Concern over various elements of the financial services industry, August 2012
…but people do still pay attention to more abstract issues
Mis-selling and the concept of caveat emptor
DO PEOPLE DIFFERENTIATE BETWEEN BANKS AND MUTUALS?
Key points
Two thirds appreciate the difference between building societies and banks…
Figure 18: Awareness of the difference between banks and building societies, August 2012
…but the level of understanding varies widely
The legacy of demutualisation leaves some consumers confused
Older people much more aware of the difference between banks and building societies
Figure 19: Awareness of the difference between banks and building societies, by age, August 2012
MUTUALS AND BANKS – THE TRUST GAP
Key points
Charting the difference between banks and building societies
Figure 20: Opinion on the relative qualities of banks and building societies, August 2012
Among those  who care, building societies do have the edge on trust…
…but most people simply don’t see a difference
Figure 21: Opinion on the relative qualities of banks and building societies, August 2012
Younger people have greater faith in the banks
DOES TRUST EVEN MATTER?
Key points
Is trust a luxury or a necessity?
The link between trust and customer satisfaction
Figure 22: Key driver analysis of current account satisfaction, November 2012
You can bank with an organisation you don’t trust – but you won’t be happy
It’s the ability to say ‘sorry’ that really matters
Figure 23: Key driver analysis of current account satisfaction, November 2012
How does satisfaction differ from switching intentions?
Figure 24: Key driver analysis of current account switching intentions, November 2012
Figure 25: Key driver analysis of current account switching intentions, November 2012
Family…location…choosing a bank isn’t always about the bank
Key driver methodology
APPENDIX – PUTTING THE FINANCIAL SERVICES INDUSTRY IN CONTEXT
Figure 26: Extent to which consumers trust local shops to treat them fairly, by demographics, August 2012
Figure 27: Extent to which consumers trust supermarkets to treat them fairly, by demographics, August 2012
Figure 28: Extent to which consumers trust building societies to treat them fairly, by demographics, August 2012
Figure 29: Extent to which consumers trust banks to treat them fairly, by demographics, August 2012
Figure 30: Extent to which consumers trust solicitors to treat them fairly, by demographics, August 2012
Figure 31: Extent to which consumers trust travel companies to treat them fairly, by demographics, August 2012
Figure 32: Extent to which consumers trust mobile phone companies to treat them fairly, by demographics, August 2012
Figure 33: Extent to which consumers trust utility firms (electricity suppliers, gas suppliers etc) to treat them fairly, by demographics, August 2012
Figure 34: Extent to which consumers trust insurers to treat them fairly, by demographics, August 2012
Figure 35: Extent to which consumers trust mortgage lenders to treat them fairly, by demographics, August 2012
Figure 36: Extent to which consumers trust investment firms to treat them fairly, by demographics, August 2012
Figure 37: Extent to which consumers trust estate agents to treat them fairly, by demographics, August 2012
APPENDIX – TRUST IN DIFFERENT ELEMENTS OF THE BANKING SECTOR
Figure 38: Trust in staff at my local bank/building society, by demographics, August 2012
Figure 39: Trust in call centre staff of the banking industry, by demographics, August 2012
Figure 40: Trust in main bank/building society’s corporate culture and values of the banking industry, by demographics, August 2012
Figure 41: Trust in senior executives in the financial services industry of the banking industry, by demographics, August 2012
Figure 42: Trust in the way in which the financial services sector in general operates, by demographics, August 2012
Figure 43: Trust in the way in which the financial services sector in general is governed, by demographics, August 2012
APPENDIX – WHAT DOES ‘TRUST’ MEAN?
Figure 44: Agreement with the statements ‘I trust that my bank will still be in business a year from now’ and ‘I trust my bank to handle my day-to-day banking requirements (paying direct debits, running internet banking services, processing debit card payments etc)’, by demographics, August 2012
Figure 45: Agreement with the statement ‘I trust my bank to give me a fair deal’, by demographics, August 2012
APPENDIX – TRUST IN BRANCH STAFF
Figure 46: Trust in bank and building society staff being able to get the basics right (processing transactions, answering simple account queries, etc), by demographics, August 2012
Figure 47: Trust in bank and building society staff and their knowledge of the products offered by the bank/building society, by demographics, August 2012
Figure 48: Trust in bank and building society staff being able to resolve problems that you have encountered, by demographics, August 2012
Figure 49: Trust in bank and building society staff and their ability to give me relevant and useful advice on my financial requirements, by demographics, August 2012
Figure 50: Trust in bank and building society staff and their willingness to do what’s right for me, not what’s right for the bank, by demographics, August 2012
Figure 51: Trust in bank and building society staff, by demographics, August 2012
APPENDIX – AWARENESS AND UNDERSTANDING OF INDUSTRY FAILINGS
Figure 52: Awareness of complaints about payment protection insurance mis-selling, by demographics, August 2012
Figure 53: Awareness of complaints about excessive pay structure/bonuses in the banking sector, by demographics, August 2012
Figure 54: Awareness of complaints about problems with processing payments at RBS/NatWest, by demographics, August 2012
Figure 55: Awareness of complaints about excessive bank charges, by demographics, August 2012
Figure 56: Awareness of complaints about LIBOR fixing, by demographics, August 2012
Figure 57: Awareness of complaints about mis-selling of investment products, by demographics, August 2012
Figure 58: Awareness of complaints about mis-selling of pension products, by demographics, August 2012
Figure 59: Awareness of complaints about mis-selling of interest rate swaps for small businesses, by demographics, August 2012
Figure 60: Awareness of complaints about banks’ involvement in ‘casino banking’, by demographics, August 2012
APPENDIX – LEVEL OF CONCERN OVER INDUSTRY FAILINGS
Figure 61: Most popular concern over various elements of the financial services industry, by demographics, August 2012
Figure 62: Next most popular concern over various elements of the financial services industry, by demographics, August 2012
APPENDIX – DO PEOPLE DIFFERENTIATE BETWEEN BANKS AND MUTUALS?
Figure 63: Awareness of the difference between banks and building societies, by demographics, August 2012
APPENDIX – MUTUALS AND BANKS – THE TRUST GAP
Figure 64: Opinion on offering the best rates between banks and building societies, by demographics, August 2012
Figure 65: Opinion on the trustworthiness of banks and building societies, by demographics, August 2012
Figure 66: Opinion on showing a strong sense of morality of banks and building societies, by demographics, August 2012
Figure 67: Opinion on the customer service of banks and building societies, by demographics, August 2012
Figure 68: Opinion on the financial strength/stability of banks and building societies, by demographics, August 2012
Figure 69: Opinion on supporting the UK economy of banks and building societies, by demographics, August 2012
Figure 70: Opinion on offering innovative new ways to bank by banks and building societies, by demographics, August 2012
Figure 71: Opinion on offering the widest range of products by banks and building societies, by demographics, August 2012
Figure 72: Opinion on the convenience of banks and building societies, by demographics, August 2012

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