866-997-4948(US-Canada Toll Free)

The Role of Trust in Financial Services - UK - September 2014

Published By :

Mintel

Published Date : Sep 2014

Category :

Banking

No. of Pages : 287 Pages

Greater consumer interaction with financial services firms can slowly build trust, while negative media coverage and word of mouth on the industry’s failings have the power to destroy this trust almost immediately. While companies need to find ways to engage more effectively with their customers, they also face the challenge of dealing with the impact that bad customer experiences can have on their reputation and consumer trust.
Table of Content

Introduction

Abbreviations

Executive Summary

Putting the financial services industry in context
Discouraging results for the financial services industry…
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
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…
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
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
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

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

Life Hacking
Decline of Deference
Mintel futures: Brand Intervention

Putting the Financial Services Industry in Context

Key points
Survey background
Discouraging results for the financial services industry …
Figure 6: Extent to which consumers trust companies to treat them fairly, June 2014
…but it’s not all bad news
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…
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
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

Key points
The financial services industry is not a homogenous whole
Figure 10: Trust in different elements of the banking industry, June 2014
Proximity builds trust
Trust in call centre staff seems variable
Figure 11: Trust in different aspects of the banking industry, June 2014
Trust of the over-65s is strongly based on branch staff...
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
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’

Key points
‘Trust’ can refer to different concepts
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
Figure 15: Investigating different concepts of trust, by selected main bank account providers, June 2014

Level of Concern over the Industry’s Failings

Key points
Excessive bank charges cause the greatest concern…
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

Key points
How much do customer experiences affect trust in the industry?
Figure 17: Consumer experiences with financial services, June 2014
Interaction with the industry seems to generally increase trust
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
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
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

Key points
The issue of bankers’ pay strikes a chord with consumers
Figure 21: Attitudes towards the financial services industry, June 2014
Consumers would like to see harsher punishment for financial misconduct
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

Figure 23: Extent to which consumers trust companies to treat them fairly – Local shops, by demographics, June 2014
Figure 24: Extent to which consumers trust companies to treat them fairly – Supermarkets, by demographics, June 2014
Figure 25: Extent to which consumers trust companies to treat them fairly – Building societies, by demographics, June 2014
Figure 26: Extent to which consumers trust companies to treat them fairly – Travel companies, by demographics, June 2014
Figure 27: Extent to which consumers trust companies to treat them fairly – Banks, by demographics, June 2014
Figure 28: Extent to which consumers trust companies to treat them fairly – Solicitors, by demographics, June 2014
Figure 29: Extent to which consumers trust companies to treat them fairly – Mobile phone companies, by demographics, June 2014
Figure 30: Extent to which consumers trust companies to treat them fairly – Financial advisers, by demographics, June 2014
Figure 31: Extent to which consumers trust companies to treat them fairly – Insurers, by demographics, June 2014
Figure 32: Extent to which consumers trust companies to treat them fairly – Utility firms, by demographics, June 2014
Figure 33: Extent to which consumers trust companies to treat them fairly – Mortgage lenders, by demographics, June 2014
Figure 34: Extent to which consumers trust companies to treat them fairly – Investment firms, by demographics, June 2014
Figure 35: Extent to which consumers trust companies to treat them fairly – Estate agents, by demographics, June 2014

Appendix – Trust in Different Elements of the Banking Industry

Figure 36: Trust in different elements of the banking industry – Staff at my local bank/building society branch, by demographics, June 2014
Figure 37: Trust in different elements of the banking industry – Call centre staff of my main bank/building society, by demographics, June 2014
Figure 38: Trust in different elements of the banking industry – My main bank/building society’s corporate culture and values, by demographics, June 2014
Figure 39: Trust in different elements of the banking industry – The people responsible for regulating the banking industry, by demographics, June 2014
Figure 40: Trust in different elements of the banking industry – Senior executives of my bank/building society, by demographics, June 2014
Figure 41: Trust in different elements of the banking industry – The way in which the overall banking industry operates, by demographics, June 2014

Appendix – Investigating Different Concepts of ‘Trust’

Figure 42: Agreement with the statement ‘I trust that my bank will still be in business five years from now’, by demographics, June 2014
Figure 43: Agreement with the statement ‘I trust my bank to protect me against fraud’, by demographics, June 2014
Figure 44: Agreement with the statement ‘I trust that my bank’s online banking systems are secure’, by demographics, June 2014
Figure 45: Agreement with the statement ‘I trust that my bank keeps my personal information secure’, by demographics, June 2014
Figure 46: Agreement with the statement ‘If mistakes happen, I trust my bank to fix these quickly’, by demographics, June 2014
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
Figure 48: Agreement with the statement ‘I trust my bank to treat me fairly’, by demographics, June 2014
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
Figure 50: Agreement with the statement ‘I trust my bank to have my best interest at heart’, by demographics, June 2014
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)
Figure 53: Agreement with the following statements, by current account providers – Main account, June 2014 (continued)
Figure 54: Agreement with the following statements, by current account providers – Main account, June 2014 (continued)

Appendix – Level of Concern over the Industry’s Failings

Figure 55: Consumer concerns over various issues in the financial services industry, by demographics, June 2014
Figure 56: Consumer concerns over various issues in the financial services industry, by demographics, June 2014

Appendix – Effect of Customer Experiences on Trust

Figure 57: Agreement with the following statements, by consumer experiences with financial services – Made a claim on an insurance policy, June 2014
Figure 58: Agreement with the following statements, by consumer experiences with financial services – Applied for a loan or credit card, June 2014
Figure 59: Agreement with the following statements, by consumer experiences with financial services – Applied for a mortgage, June 2014
Figure 60: Agreement with the following statements, by consumer experiences with financial services – Got financial advice from my bank, June 2014
Figure 61: Agreement with the following statements, by consumer experiences with financial services – Got advice from a financial adviser, June 2014
Figure 62: Agreement with the following statements, by consumer experiences with financial services – Paid bank charges for an overdraft, June 2014
Figure 63: Agreement with the following statements, by consumer experiences with financial services – Paid charges for late payments, June 2014
Figure 64: Agreement with the following statements, by consumer experiences with financial services – Switched my main bank/building society, June 2014
Figure 65: Agreement with the following statements, by consumer experiences with financial services – Switched my car/home insurance provider, June 2014
Figure 66: Agreement with the following statements, by consumer experiences with financial services – Experienced fraud on a card/bank account, June 2014
Figure 67: Agreement with the following statements, by consumer experiences with financial services – Lost a debit/credit card or had it stolen, June 2014
Figure 68: 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
Figure 69: 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 70: 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 71: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Applied for a mortgage, June 2014
Figure 72: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Got financial advice from my bank, June 2014
Figure 73: 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 74: 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 75: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Paid charges for late payments, June 2014
Figure 76: Consumer concerns over various issues in the financial services industry, by consumer experiences with financial services – Switched my main bank/building society, June 2014
Figure 77: 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 78: 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 79: 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 80: 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

Appendix – Attitudes towards the Financial Services Industry

Figure 81: Agreement with the statement ‘I object to bonuses received by the senior executives in the banking sector’, by demographics, June 2014
Figure 82: Agreement with the statement ‘The punishment of individuals for financial misconduct is not severe enough’, by demographics, June 2014
Figure 83: Agreement with the statement ‘The punishment of financial institutions for financial misconduct is not severe enough’, by demographics, June 2014
Figure 84: Agreement with the statement ‘The trading/investment services of banks should be kept separate from their customer/retail banking services’, by demographics, June 2014
Figure 85: Agreement with the statement ‘Bank charges are not transparent enough’, by demographics, June 2014
Figure 86: Agreement with the statement ‘Building societies tend to be more trustworthy than banks’, by demographics, June 2014
Figure 87: Agreement with the statement ‘I trust existing companies in the financial services industry more than new entrants’, by demographics, June 2014

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *

Upcoming Reports

  • Sugar and Gum Confectionery - UK - January 2015

    Rising dental health concerns can create an opportunity for chewing gum brands. Currently much of the marketing for sugar-free gums centres around fresh breath, however, the dental health benefits, particularly for children, could warrant more focus. Though explored internationally, tooth-friendly gums tailored for children remain rare in the UK market....