Consumer trust of financial services still down
Trust in Australia’s leading financial services brands may not recover as quickly as financial markets following the global financial crisis, according to research conducted by Investment Trends.
According to a survey asking consumers to list factors that would increase their trust in financial services providers, two thirds of respondents nominated openness about fees.
Following through on promises was next at 60 per cent, and giving good returns was nominated by 29 per cent of respondents. Seven out of the top 10 nominated factors were related to openness and transparency about fees.
The research also found that many consumers view what financial services firms say with suspicion. For example, 80 per cent of respondents found it unlikely that a financial services firm was telling the truth when it said “we care about you”.
Smaller operators were thought to be more trustworthy than larger firms, with the research finding that the size of a financial institution played an ambiguous role in the formation of trust.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
