2024
9
UK Trust in Financial Services Market Report 2024
2024-05-15T09:02:43+01:00
REPA1AD1B8A_2CE5_4541_B533_160CD4ECC1F5
2195
172995
[{"name":"Financial Services","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services"}]
Report
en_GB
Trust in financial services has risen in recent years, but challenges still persist. Increased transparency will be key to further improvements.Saltanat Kuermannal, Financial Services Analyst…

UK Trust in Financial Services Market Report 2024

£ 2,195 (Excl.Tax)

Report Summary

Trust in financial services has risen in recent years, but challenges still persist. Increased transparency will be key to further improvements.

Saltanat Kuermannal, Financial Services Analyst

Table of Contents

  1. Executive Summary

    • Opportunities
    • Maintain support for those experiencing financial difficulties amid the cost of living crisis
    • Understand consumers' desires to offer more relevant advice and guidance
    • Transparency is key to trust
    • What consumers want and why
    • Trust is on the rise…
    • Graph 1: proportion of adults who trust companies to treat their customers fairly, 2020, 2024
    • …with the highest trust in building societies and high street banks
    • Graph 2: proportion of adults who trust companies to treat their customers fairly, 2024
    • Transparency is the most important factor influencing trust
    • Half of Brits have contacted a bank with a problem in the last three years
    • Graph 3: reasons consumers have contacted a bank in the last three years, 2024
    • Key areas for enhancing consumer trust
    • Brits are broadly accustomed to sharing data with financial services providers
    • Consumers are looking for a range of benefits in exchange for personal or financial data
    • Concerns about misuse or scams are the main barriers to personalised financial services
    • Graph 4: attitudes towards trust in financial services, 2024
    • Innovation and marketing
    • HSBC pioneers quantum security in banking, forging trust through transparency
    • Nationwide boosts charity donations to £9.6 million, reinforcing consumer trust amid cost of living crisis
  2. Market Dynamics

    • Macro-economic factors
    • Easing inflation gave greater cause for optimism at the start of 2024…
    • Graph 5: CPI inflation rate, 2021-24
    • …but high interest rates remain a concern for many
    • Consumer sentiment: the recovery is continuing…
    • Graph 6: the financial wellbeing index, 2016-24
    • …and people feel more confident about their financial prospects
    • Graph 7: the financial confidence index, 2016-24
    • Regulatory and legislative changes
    • FSMA 2023 aiming for a Smarter Regulatory Framework for the UK
    • New Consumer Duty places an increased emphasis on trust
  3. What Consumers Want and Why

    • Current level of trust towards financial services providers
    • Trust is on the rise…
    • Graph 8: proportion of adults who trust companies to treat their customers fairly, 2020, 2024
    • … reflecting both the actions taken by brands and structural changes in the sector
    • Trust tends to decline with age…
    • Graph 9: proportion of adults who trust companies to treat their customers fairly, by age, 2024
    • … and increase with household income
    • Graph 10: proportion of adults who trust companies to treat their customers fairly, by household income, 2024
    • Mobile-only banks need to address the trust factor among older adults
    • Graph 11: trust or distrust in mobile-only banks* to treat their customers fairly, by age, 2024
    • Factors influencing trust
    • Transparency is the most important factor influencing trust…
    • Graph 12: factors that are most important for consumers to trust a financial service provider, 2024
    • … particularly among those aged 55+
    • Graph 13: factors most important for consumers to trust a financial service provider, by age, 2024
    • Building trust beyond branches
    • Graph 14: factors most important for consumers to trust a financial service provider, by age, 2024
    • Develop exclusive experiences and leverage brand reputation among higher-value consumers
    • Graph 15: factors most important for consumers to trust a financial service provider, by total value of savings and investments, 2024
    • Share positive reviews and testimonials on social media platforms
    • Cost-effective security innovations
    • Customer contact with banks
    • Half of Brits have contacted a bank with a problem in the last three years…
    • Graph 16: reasons consumers have contacted a bank in the last three years, 2024
    • …primarily to report a lost or stolen card
    • Graph 17: reasons for contacting a bank in the last three years, by age, 2024
    • Increase awareness of help with financial difficulty among lower-income households
    • Influence of contact with banks on trust
    • Contact with banks is much more likely to improve trust than erode it
    • Graph 18: how much people trust their bank to look out for their best interests after contacting them, by type of issue most recently resolved, 2024
    • Key areas for enhancing customer trust
    • Complaints offer an opportunity to prove banks are on their customers' side
    • Personalisation and data sharing
    • Brits are broadly accustomed to sharing data with financial services providers
    • Graph 19: types of personal/financial information consumers would be willing to share with a financial services provider, 2024
    • Higher-earners are much more willing to share their financial transaction data
    • Graph 20: proportion of consumers willing to share their financial transaction data with a financial services provider, by household income, 2024
    • General reluctance to share social media data
    • Graph 21: proportion of consumers willing to share their social media data with a financial services provider, by generation, 2024
    • Consumers are looking for a range of benefits in exchange for personal or financial data
    • Graph 22: personalised services people would be willing to share personal/financial data with financial services companies to access, 2024
    • Understand consumers' desires to offer more relevant advice and guidance
    • Insurance set for innovation as smart devices become more common
    • Attitudes towards trust in financial services
    • Concerns about misuse or scams are the main barriers to personalised financial services
    • Graph 23: attitudes towards trust in financial services, 2024
    • Brands are yet to prove the benefits of data sharing to older groups
    • Graph 24: 'I think that sharing personal/financial information can make financial services more efficient', by age, 2024
    • Trust in fair pricing policies is weakest among middle-aged Brits
    • Support for those experiencing financial difficulties amid the cost of living crisis
    • Digital communications are most valued by young parents
  4. Innovation and Marketing Trends

    • Competitive landscape
    • Nationwide launches a new Home Energy Efficiency Tool for sustainable living and zero-interest eco-upgrades
    • Sibstar partners with Alzheimer’s Society and Mastercard to launch new debit card & app for people with dementia
    • HSBC pioneers quantum security in banking, forging trust through transparency
    • Nationwide boosts charity donations to £9.6 million, reinforcing consumer trust amid cost of living crisis
    • Revolut launches AI feature to shield customers from scams
    • Trust in financial brands
    • Increased trust in PayPal Credit and Compare the Market
    • Graph 25: most trusted brands in financial services*, 2023-24
    • Challenger brands struggle to convince
    • Graph 26: least trusted brands in financial services*, 2023-24
    • A lesson from the Post Office scandal
  5. Appendix

    • Report scope and definitions
    • Market definition
    • Abbreviations and terms
    • Methodology
    • Consumer research methodology
    • CHAID analysis – methodology data

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch