Author: Mintel Group Ltd.
Last saved by: HTTP server

The Role of Trust in Financial Services - UK - October 2018

OVERVIEW
What you need to know
EXECUTIVE SUMMARY
The market
FCA aiming to transform culture and tackle data misuse
Companies and brands
Just 19% trust financial services brands
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
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
Figure 3: Extent to which consumers trust companies to treat them fairly, August 2018
Overcomplicated financial information the main factor causing distrust
Figure 4: Factors which contribute to a lack of trust, August 2018
Customer service still plays a key role
Figure 5: Important features for building trust, August 2018
Online-only banks behind tech firms in terms of trust and data security
Figure 6: Trust in financial services companies to hold personal and financial data securely, August 2018
Consumers undecided on whether trust is improving
Figure 7: Attitudes towards trust and financial services providers, August 2018
A quarter would trust alternative providers
Figure 8: Attitudes towards trust and financial services providers, August 2018
What we think
ISSUES AND INSIGHTS
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
FCA looking to tackle both culture and data misuse
‘Unreadable’ financial content causes trust issues
MARKET ENVIRONMENT
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
Just 19% trust financial services brands
The Post Office is the most trusted financial services brand
TRUST AND FINANCIAL SERVICES BRANDS
Just 19% trust financial services brands
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
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
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
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
Building societies and banks lead the way for financial services companies
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
Figure 13: Proportion of consumers who trust companies to treat them fairly, by age, August 2018
Well-off consumers more likely to trust brands
Figure 14: Proportion of consumers who trust companies to treat them fairly, by financial situation, August 2018
EFFECT OF OWNERSHIP ON TRUST
Ownership drives trust
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
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
Figure 17: Proportion of consumers who trust insurance companies to treat them fairly, by product ownership, August 2018
FACTORS CONTRIBUTING TOWARDS DISTRUST
Half feel misleading terms and conditions have led to distrust
30% blame poor customer service and negative media coverage
Figure 18: Factors which contribute to a lack of trust, August 2018
BUILDING TRUST IN FINANCIAL SERVICES
Clear financial information the key
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
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
Figure 21: Repertoire of important features for building trust, August 2018
TRUST AND DATA SECURITY
Majority trust banks to look after their personal or financial data
Only one in four would trust an online-only bank
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
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
One in four do not trust their financial services providers to be fair, open and honest
Consumers split as to whether trust is improving
Figure 24: Attitudes towards trust and financial services providers, August 2018
Increased faith among those with greater ownership
Figure 25: Agreement with statements about trust and financial providers, by number of financial products owned, August 2018
TRUST IN ALTERNATIVE PROVIDERS
A quarter would trust an alternative financial services provider
Figure 26: Attitudes towards trust and financial services providers, August 2018
Greater receptiveness among wealthier households
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
Figure 28: Trust in large tech firms to manage financial services – CHAID – Tree output, August 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
CHAID Methodology

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.