After years of skepticism in the wake of the 2008 financial crisis, the global banking industry has clawed its way back and regained the trust of customers and employees.
That is one of the main conclusions from the 2024 Edelman Trust Barometer: Financial Services Edition. The report conducts a deep dive into the financial services sector, examining what people think about the companies they rely on, work for, and entrust with their money and financial future. The report surveyed more than 32,000 people in 28 countries. The findings provide financial services companies with valuable information on the perceptions of the broad population. Although there are certainly bright spots, findings also indicate that the industry can do more to communicate its value as a trusted adviser.
Trust in Financial Services Is Rising
Global trust in financial services is up four percentage points from last year to 62%, and the industry sits solidly in the “trusted” category for the first time since the Global Financial Crisis. Attitudes toward financial services also improved due to the industry’s performance during the pandemic, when people turned to financial providers for emergency loans and witnessed the sector stepping up with relief programs and propping up global economies.
High-income individuals are the most trusting of financial services, perhaps due to greater exposure and interaction than other income groups. Low-income respondents and those over 55 years old are among the least trusting cohorts.
Around the world, the financial services industry now ranks at an all-time high for trust in half of the countries surveyed. Nigeria, Saudi Arabia, and Colombia saw double-digit growth in trust. U.S. trust in the sector dipped two percentage points to 55%, which may be the result of overhang from last year’s regional banking crisis. Nine countries, including the UK, Japan, and Argentina, distrust financial services.
In the banking sector, two-thirds of survey respondents said they trust financial institutions. This represents a 12-point increase over the past decade and is reflected in all genders, ages, and income levels.
How To Win Trust
It isn’t easy to win the trust of skeptical constituencies, many of whom base their perceptions of the financial industry on their own personal experiences. Still, financial services firms can pursue several strategies to win trust:
- Showcase the data: Financial services companies sit on enormous stockpiles of data that can be used to provide real-time knowledge about the economy, sustainability, and personal wealth. Use that data to back up your unique point of view. Such data are often confined to individual silos within an organization, inhibiting their value.
- Provide trustworthy content: Owned content and social content currently sit in the “distrusted” category for respondents. That sentiment changes, however, when respondents are asked about the owned and social media from companies and individuals they trust. With financial services now sitting in the “trusted” category, this is an opportunity for companies to advance their content strategies.
- Look to your workforce: The survey found that employees of financial services companies are among the most trusting of their employers, so why not use them as your brand ambassadors? Fresh buzz about the company from the people who work there can also help attract the best talent.
- Lead your way to change: The Trust Barometer broadly found that business overall maintained its position as the only trusted institution in the survey at 63%, ranking 52 percentage points higher than government when it comes to competence. As the most trusted segment, business has the power and responsibility to lead. That means leaders can take a stand on issues that are important to their company and workforce. By partnering with institutions that currently aren’t trusted – such as government – CEOs can drive global change.
See the full report here.
--Deidre Campbell, Managing Director of Financial Services, Edelman Smithfield