Poor trust sees financial services consumers tune out
Financial services brands that have lost the trust of the public may struggle to get it back, with consumers "switching off" when they see their ads.
Such is the conclusion of Ipsos Australia research, which found people who don't have a high level of trust for a financial services organisation often don't even remember seeing the brand's advertising.
It also found financial services brands that were considered "trusted" were five times more likely to register with potential customers, than those who rated below average on trust.
Director of Behavioural Science at Ipsos Australia, Pascal Bourgeat, PhD, said the research found a 70 per cent correlation between trust and the net promoter score, which measures how likely a person would be to recommend the brand to a friend or colleague.
"Trust can act as a switch-off or enabling mechanism at any point of the customer journey affecting how much customers pay attention, how motivated they become, which options they really consider and ultimately which decisions they made," he said.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
