Trust slides in banking
Distrust in banking and finance is as ripe as ever, and even getting worse, a couple of fresh pieces of consumer research this week suggest.Industry association FINSIA shared highlights of adverse research conducted in February and March this year in a submission for the Hayne royal commission. And Roy Morgan Research's monthly monitor also shows a dip in banks' standing with consumers.RFi Group conducted the research for FINSIA, polling 2000 respondents in February and March "to determine current levels of trust consumer have in the banking industry, what consumers want from their banks, and the role of professionalism and professional bodies in the industry." The latter themes are central to the business model of FINSIA.Key findings of the RFi research included that "only one in two consumers highly trust the Australian banking industry whilst only two in five highly trust the CEO and senior executive team of their banks, while 57 per cent of consumers believe the Australian banking industry as a whole does not have high ethical standards."This is broadly similar to findings of research last year by Edelman Intelligence for the Australian Banking Association. Edelman at the time found 50 per cent ticked the box at the trusted end of the scale when asked for a view on "how much you trust that institution to do what is right" using a nine-point scale.Meanwhile, Roy Morgan's 'Customer Satisfaction-Consumer Banking in Australia June Report', released this week, shows that bank customer satisfaction has dropped from 82.3 per cent in January 2018, prior to the Hayne royal commission, down to 78.5 per cent in May and slipped even further to 78.3 per cent in June.Norman Morris, Industry Communications Director at Roy Morgan, said "this represents a decline of 4.0 percentage points since January and is now at the lowest monthly satisfaction level since April 2012 (but still remains above the long term average of 73.8 per cent calculated since 2001 and well up on the 60.0 per cent in January 2001).