In the last 12 months while the Financial Services industry has been standing still, Technology companies have forged ahead in comparative terms, with Technology firms standing some twenty nine percentage points higher. In this case, the terms are trust. Thus speaks the scale of trust in specific industries as detailed in the 2014 Edelman Trust Barometer.
In its ninth year, the Trust Barometer is Edelman’s 14th annual exploration of trust. Now surveying 33,000 people in 27 markets, it’s an unparalleled measure of how the population in general and a segment, the informed public view business, specific industries, issues and the government
Financial services, with only 50% is the industry at the bottom of the chart when it comes to how much individuals trust the industry to do what is right, remaining static year on year since 2013. Banking may have increased by one percentage point to 51%, but it’s only the Chemical industry that has become less trusted in the last 12 months.
Source: Edelman 2014 Trust Barometer
Worryingly for the asset management and financial advisory sector, this is the least trusted of Financial Services, falling a whopping 6% behind the banking and credit card/payments sector. No wonder that we see Facebook making moves towards the payments sector as this tops out as the most trusted area with a 52% trust rating.
Source: Edelman 2014 Trust Barometer
There is a marked difference in geographical territories, with the developing Asia Pacific market more than twice as trusting as the European Union, and 11% ahead of North America.
Fear not though, the financial services industry in the USA and Canada has definitely been doing something right in the last 12 months, seeing an increase in trust of seven and four percent respectively, putting the USA in the top three of countries who’s trust fortunes are changing positively. It’s also gratifying for the industry that in both countries, trust is higher in Financial Services than industry generally, although only by two percentage points in both cases.
Its past time to either change spokespeople – or make significant moves to change the perception of the current mouthpiece. By far the most trusted of spokespeople are the engineers, scientists or technical experts, the least? The bloggers (I’ll get my coat then…). Falling to the lower half of the credible spokesperson chart is the CEO and board of directors. CEO’s can take hear that government officials and regulators appear less credible than they do.
Source: Edelman 2014 Trust Barometer
The barometer finds that a company employee is the most trusted spokesperson to provide credible and honest information, by a margin of a huge twenty percentage points more than even activist consumers, and twenty nine percentage points more than the company’s CEO. Consistently across the areas of engagement, integrity, products & services, purpose and operations, it is the individual company employee that tops the chart as the most trusted spokesperson – a clear indication that it is the individual relationships that we all have that build and generate trust in an organization.
What can Financial Services Firms do with this Information?
1) Ensure that good business management is continued
From ensuring quality products and services to the protection of customer data and respecting employee rights, these key attributes are fundamental to good business practice – and adherence further drives trust and both employee and consumer desire to positively share and do business.
2) Empower individuals to share across multiple media sources
Online search and traditional media is viewed as the most trusted media source for Financial Services firms, clearly a role for a centralized media or marketing team to manage, but when it comes to new forms of communication like social media, it’s the individuals who have the powerhouse networks. Specifically in financial advisory and asset management, where the personal relationship is the key driver for continued business, yet the sector where that is least trusted, it’s time to embrace new technology, take heed of continued common sense regulatory guidelines and forge ahead.
3) Get Involved
84% of individuals believe that a company can take specific actions that both increase profits AND improve the economic and social conditions in the communities where it operates. Firms should embrace this – engage locally, work within specific communities, and promote those improvements. Responses to localized situations such as the 2013 Alberta Floods from firms such as TD Bank, show that a proactive, well thought out “we’re in this together” approach can often show that while a disaster may happen, the firm is standing alongside those impacted.
4) Lead the Debate for Change
49% of individuals believe that there is not enough regulation for Financial Services in the North America. In leading the debate, in sharing the combined knowledge and expertise of the industry, firms can take the trust that they are building and lead the debate for change, after all, “people trust business to innovate in a way that the government can’t”
We see examples each day of how firms are working to rebuild trust, to drive change in social and economic conditions – what do you see working?
Guest blogger, social media guru, and citizen of the world Sarah Carter regulary shares her nomadic travel experiences and social insights here with our blog audience. To learn more about Sarah and her exciting travels, follow @SarahActiance on Twitter. The post Trust: How Your Employees hold the Keys to Recovery appeared first on Actiance.