Consumer Confidence in Financial Services Reaches New Low

LONDON - Marketing Executives face an enormous challenge to rebuild consumer trust in the financial services industry, according to the findings of the Direct Marketing Association’s latest Financial Services Tracking Study, produced in conjunction with fast.map.

71 per cent of the 1,600 consumers polled for the study expressed distrust in the finance industry. This is an increase of five per cent since 2008.

Consumer trust in financial services is now lower than in the media, with 36 per cent stating their confidence in the industry. Only the Government, which registered a trust level of just 19 per cent, was lower. This survey compared eight industries, including utilities, the automotive sector and mobile phone companies.

The study also highlights financial services companies’ marketing materials as a source of distrust. One in 10 consumers polled, stated that they ‘completely distrust’ the information provided by high street banks in their marketing material, and four in 10 do not trust the information conveyed in insurance companies’ marketing literature.

Produced on a half-yearly basis, the DMA Financial Services Tracking Study charts the changes in consumer attitudes towards the financial services industry. Commenting on the findings of the study, Robert Keitch, chief of Membership & Brand, DMA, said:

“Our findings show that consumers today have less trust in business than at any time in living memory. If consumer financial services providers do not address this critical issue, then they will pay a heavy price. Demonstrating trust as a core corporate value is what will give institutions a competitive edge over their rivals.”

The tracking study also includes a customer service league table of the UK’s 12 top high street financial services brands. Nationwide Building Society, Lloyds TSB and Barclays continue to occupy the top three slots for companies with the best customer services reputations. At the foot of the table, HBOS, Royal Bank of Scotland and Britannia Building Society once again received the least number of commendations.

For further information: Rachel Aldighieri DMA PR Manager Tel: +44(0)20-7291-3334 +44(0)7801-573324 Email: rachel@dma.org.uk

Source: DMA

For further information: Rachel Aldighieri, DMA PR Manager, Tel: +44(0)20-7291-3334, +44(0)7801-573324, Email: rachel at dma.org.uk.