Factors That Influence Trust

Trust levels vary among different demographics and methods of doing business. In-person access is more important to low-trust consumers. For high trust consumers, the importance of in-person access depends on the financial product or amount of money held.

“Some things financial companies can do to show me that they’re trustworthy is to greet me by my name, offer me coffee or stickers for the kids. They don’t just treat me like a number.”

— SURVEY RESPONDENT

Source: Demographics of Trust Index™

*NOTE: The Demographics of Trust Index™ is a composite measure summarizing responses from multiple statements in our consumer survey that represent beliefs about trust, including those concerning privacy and data security, financial integrity, guidance/decision-making, community support, and innovation. It's calculated by asking consumers to rate how much they agree with each statement on a 7-point scale (where 1 means “Strongly Disagree” and 7 means “Strongly Agree”). Consumers are only asked to rate the types of financial companies they use or are familiar with. The agreement ratings were then converted to a 0-100 scale and averaged to form the index value.

“Friendly, trustworthy, safe: those are characteristics a financial company should have to make me feel confident it is right for my needs.”

— SURVEY RESPONDENT

KEY INSIGHT

Consumers prefer to engage with community banks and credit unions—even though these are among the least widely-used options.

Simplicity, Not Knowledge, Wins the Day for Consumers

While it is generally believed consumers are seeking knowledge and skills from a financial professional, our research shows they are looking for simplicity first and foremost. As those in the profession are aware, it takes knowledge and skill to simplify complex ideas; yet, from the consumer’s perspective, it is possible that complexity signals distrust while simplicity—if it is transparent and truthful—can be an attractive proposition.

Consumer preference for simplicity and ease of use is so strong (60% of consumers identify it as a priority for them) that it often outweighs fees associated with a product or service (58%), the level of risk (57%), or guarantees offered by the company (50%). Because of this, firms offering simpler, streamlined products that help consumers consolidate their relationships can prevent them from feeling overwhelmed and uncertain about the advice they receive.

Financial companies and professionals could get ahead of this by offering both the pros and cons of a product to a client, taking time to explain difficult concepts and offering suggestions even about products clients do not ask about.

KEY INSIGHT

60% of consumers say they prefer financial products that are easy to use and understand.

BACK《 ALIGNING VALUES

NEXT 》 ABOUT THE AUTHORS