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The Role of Trust in Financial Services - US - December 2018

"The financial services sector has been hard hit by reputation-damaging events. Consumer trust is built on personal interaction with their preferred brand, but tangible features like low fees are still most important for FSI (financial services institution) selection."

– Jennifer White Boehm, Associate Director - Financial Services

This report examines the following issues:

  • Trust is a baseline for all other financial 
  • History matters
  • Add a personal touch 
  • Employee involvement breeds trust

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Trust is a baseline for all other financial attributes
          • Figure 1: Necessity of trust, October 2018
        • History matters
          • Figure 2: Bank brand trustworthiness, October 2018
        • Add a personal touch
          • Figure 3: Trust in industry vs trust in provider, by generation, October 2018
        • Employee involvement breeds trust
          • Figure 4: Top three factors of trust, October 2018
        • What it means
        • The Market – What You Need to Know

          • America is slowly aging, but younger generations will drive institutional change
            • The past decade has been difficult for consumer trust
            • Market Factors

              • America is slowly aging, but younger generations will drive institutional change
                • Figure 5: Population by generation, 2013-2023
              • Despite challenges, economic outlook generally healthy
                • Figure 6: Key economic indicators, change from April 2018, August 2018
              • 2008-2018: A decade that challenged consumer trust
                • The “Great Recession”
                  • Data breaches
                    • Wells Fargo scandal
                      • Launch and growing popularity of social media
                        • Figure 7: Bank of America customer service tweet, December 2018
                        • Figure 8: American Express customer service tweet, December 2018
                      • Proliferation of “fake news”
                      • Key Players – What You Need to Know

                        • Trust is volatile
                          • Fintech and insurance are considered least trustworthy in financial services
                            • Brands are forming trust partnerships across industries
                            • Financial Services Face Strong Trust Challenges

                              • Consumer trust is volatile and changes quickly
                                • Edelman Trust Barometer shows 20 point drop in US trust of FSIs
                                  • Fintech, insurance not considered trustworthy
                                    • Figure 9: Trust of insurance and fintech companies, October 2018
                                • Brands Building Trust

                                    • Trusted partnerships
                                      • PayPal and Walmart
                                        • Chase and Pinterest
                                          • Trust in public persona
                                            • Ally’s “That’s Not Right”
                                              • Figure 10: Ally “That’s Not Right” TV advertising campaign, October 2018
                                            • Bank of America’s “Listening to What Matters Most”
                                              • Figure 11: Bank of America “Listening to what matters most (Commercial),” November 2018
                                          • The Consumer – What You Need to Know

                                            • Credit unions and banks considered most trustworthy…
                                              • … but this trust is affected by age
                                                • Increasing fees seen as the top financial concern
                                                  • Tangible attributes most important for FSI selection
                                                    • Trust in personal institutions tops trust in industry
                                                    • Trends Impacting Trust

                                                        • Financial brands are On Display
                                                          • Figure 12: Wells Fargo Tweets, event ticket engagement, 2018
                                                          • Figure 13: Allstate Tweet, #herestofirsts, December 2018
                                                        • Taboo topics are published in an Open Diary
                                                          • Consumers are Data Creators
                                                          • Familiarity Drives Trust: A Look at Trust by Sector

                                                            • Credit unions and banks considered most trustworthy
                                                              • Figure 14: Trust of financial services sectors, October 2018
                                                            • Younger consumers more likely to put their faith in banks
                                                              • Figure 15: Trust of banks and credit unions, by generation, October 2018
                                                          • Trust in Financial Services Providers

                                                            • Trust is necessary to believe in security of finances
                                                              • Figure 16: Necessity of trust, October 2018
                                                            • Trust in personal institutions tops trust in industry
                                                              • Figure 17: Trust in industry vs trust in provider, October 2018
                                                            • Older consumers significantly more likely to trust provider over industry
                                                              • Figure 18: Trust in industry vs trust in provider, by generation, October 2018
                                                            • Consumers are confident in the security of their personal financial information
                                                              • Figure 19: Trust in FSI security, October 2018
                                                          • Financial Brand Trust

                                                            • Chase considered most trusted FSI
                                                              • Figure 20: Bank brand trustworthiness, October 2018
                                                              • Figure 21: Chase online ad and landing page, May 2018
                                                              • Figure 22: Capital One holiday virtual card email, December 2018
                                                            • Wells Fargo string of indiscretions results in highest “untrustworthy” score
                                                              • Figure 23: Lack of bank brand trustworthiness, October 2018
                                                              • Figure 24: Wells Fargo direct mail piece, response to potential fraudulent account openings, December 2016
                                                            • Financial brands need to work on trust within rural community
                                                              • Figure 25: Neutral bank trust ratings, by geographic locations, October 2018
                                                            • Fidelity more trusted than Vanguard
                                                              • Figure 26: Investment brand trustworthiness, October 2018
                                                              • Figure 27: Investment brand trustworthiness, by gender, October 2018
                                                            • PayPal branding and reputation pay off with higher trust score
                                                              • Figure 28: Online or mobile payment brand trustworthiness, October 2018
                                                              • Figure 29: Online or mobile payment brand trustworthiness, by age, October 2018
                                                          • Factors of Trust

                                                            • Personal employee interactions are an important trust factor
                                                              • Figure 30: Top three factors of trust, October 2018
                                                            • Younger consumers look for recommendations, while older rely on personal contact
                                                              • Figure 31: Top three factors of trust, by age, October 2018
                                                            • Online and phone customer service viewed equally
                                                              • Figure 32: Importance of customer service interactions, October 2018
                                                            • Men more impressed by FSI online presence
                                                              • Figure 33: Importance of online experience, by gender, October 2018
                                                          • Selecting a Financial Services Provider

                                                            • Tangible attributes most important for FSI selection
                                                              • Figure 34: Most important attributes in selecting FSI, October 2018
                                                            • Consumers are excited about local community banks
                                                              • Figure 35: #1 ranked financial services provider selection attributes, October 2018
                                                            • Parents, especially fathers, appreciate community involvement
                                                              • Figure 36: Importance of community involvement, by parental status and gender, October 2018
                                                          • Financial Services Concerns

                                                            • Increasing fees seen as the top financial concern
                                                              • Figure 37: Top financial service provider concerns, October 2018
                                                              • Figure 38: Capital One security email, January 2017
                                                          • Appendix – Data Sources and Abbreviations

                                                            • Data sources
                                                              • Consumer survey data
                                                                • Direct marketing creative
                                                                  • Abbreviations and terms
                                                                    • Abbreviations

                                                                    The Role of Trust in Financial Services - US - December 2018

                                                                    US $4,395.00 (Excl.Tax)