The full scale of UK consumers’ anger with financial institutions has been revealed for the first time in a new survey released by communications consultants Cohn & Wolfe.
UK consumers perceive their banks to be ‘greedy’ and ‘impersonal’, according to the Cohn & Wolfe Financial Confidence Survey, which polled 852 consumers in January. The study also revealed that 60% of consumers don’t believe that their bank is looking after their best interests.
When asked which words best describe the perception of their financial institution, consumers identified ‘greedy’ (49%), ‘impersonal’ (36%) and distant (34%). Positive and desired descriptions including ‘ethical’ (2%), ‘trustworthy’ (4%) and ‘transparent’ (5%) were among the least common terms used by consumers to describe their financial institutions.
Furthermore, the survey shows that financial providers are neglecting consumers in these testing times. Almost three quarters (74%) of consumers have not been contacted by their financial providers with advice on financial planning.
“Given the broader economic climate and the crisis which has hit this sector, we anticipated seeing consumers report deterioration in trust,” says Ros Hunt, head of financial services at Cohn & Wolfe. “However, the depth of resentment surprised us, demonstrating how badly customers perceive financial organisations.
“We are also surprised that financial services businesses have not made more effort to engage with consumers. People need and appreciate guidance and offering it in difficult times will help win customer loyalty. We would urge banks to consider how they can use their expertise to help consumers manage their finances in these conditions.”
Almost two thirds (64%) of respondents’ trust in financial institutions had weakened over the last 18 months. A lack of confidence in banks was further emphasised, with 74% of consumers saying that they do not believe that their bank would help them recover any money they had lost in 2008.
Respondents also identified the financial services they trusted most. Retail banks were comfortably (59%) the most trusted type of financial service. At the other end of the scale, investment brokers (2%), insurance providers (5%), online financial service providers and supermarket retailers (both 6%) come off worst.
Consumers said that measures such as banks putting an end to excessive bonuses (48%) and showing a greater willingness to pass on interest rate cuts (47%) would help renew trust in banks. Greater transparency in how banks operate and communicate (27%) was the third most common measure identified by respondents.
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