CHICAGO (8/15/13)--The banking industry hit rock bottom in a global study of consumers' trust among 11 industries, with one in two people saying they were aware of major bank scandals and one-third of thee reporting the scandals had impacted their trust in banks.
Credit unions, which have topped a number of consumer trust surveys as the most trusted financial institutions, are not included in the survey by 2013 Edelman Trust Barometer, a global public relations firm founded in Chicago.
In the past three months, according to the Credit Union National Association, credit unions have received high scores in the Temkin Ratings survey on experience, loyalty, forgiveness, trust, customer service and Web experience (News Now
Aug. 14); scored the highest in Foresee's Financial Services Benchmark on customer satisfaction (News Now
June 5); and were best in all satisfaction segments of the 2013 Credit Union Satisfaction Index from CFI Group and the American Customer Satisfaction Index (News Now
Banks and financial services each tied for last place, with 50% of consumers surveyed indicating they would trust each industry (The Financial Brand
Aug. 8). Among U.S. consumers, banks fared worse, with a 42% trust factor. Financial services included credit card companies, insurance companies and financial advisers in wealth management. Trust in banks was 11 points lower than it was in 2008, said Edelman.
"The barometer finds that this lack of trust is driven by poor performance and the perception of unethical behavior," said Edelman in a press release.
Banks received poor ratings on lending to small business, providing home mortgage loans, offering reasonable credit cards, trading and investing in government debt, and overseeing initial public offerings. The only area they scored positive in was ensuring customer privacy/security.
The industries trusted the most, and the percentage of people trusting them, included:
- Technology, 77%;
- Automotive, 69%;
- Food and beverage, 66%;
- Consumer packaged goods, 65%;
- Telecommunications, 62%;
- Brewing and spirits, 62%;
- Energy, 59%;
- Pharmaceuticals, 58%;
- Media, 53%;
- Banks, 50%; and
- Financial services, 50%.
Consumers who said they were aware of the banking scandals said the top three reasons were: corporate corruption, 25%; banking culture driven by compensation and bonuses, 23%; and a lack of regulation, 20%.
Fostering service excellence is one of the key prongs to CUNA's and the state leagues' Unite for Good campaign, which aims to achieve the vision where Americans choose credit unions as their best financial partner.