2014 EDELMAN TRUST BAROMETER FINANCIAL SERVICES INDUSTRY
RESULTS
EDELMAN'S 14TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUST
2
ONLINE SURVEY
IN 27 COUNTRIES
• 33,000+ respondents
• 6 years in 20+ markets
• 9 years in 10+ markets
GENERAL
POPULATION
• 1000 respondents per
country surveyed
• Ages 18+
• 3 years of data
INFORMED
PUBLICS
• 500 respondents in U.S. and
China & 200 in other countries
• Ages 25-64
• College-educated
• In top 25% of household
income per age group in each
country
• Report significant media
consumption and engagement
in business news and public
policy
• 14 years of data
FINANCIAL SERVICES INDUSTRY
Comparison Trust in Industries
Trust in FINANCIAL SERVICES Industry Sector
Trust in the FINANCIAL SERVICES Industry Over Time
Trust in the FINANCIAL SERVICES Industry by Region
Trust in the FINANCIAL SERVICES Industry by Country
Industry Global Bird’s
Eye View
Trust in the FINANCIAL SERVICES Industry (2013 vs. 2014)
Trust in the FINANCIAL SERVICES Industry & Trust in Business
Trust in the FINANCIAL SERVICES Industry vs. Trust Companies
Trusters and Distrusters FINANCIAL SERVICES Industry Trusters vs. Distrusters
Credible Spokespeople
Trusted Sources of Information
Trust Building Business Trust Attributes
2014 FINANCIAL SERVICES Industry Trust Attributes
3
ONE | The State of Trust
79%
75%
70%
66%
65%
65%
64%
63%
60%
59%
59%
55%
51%
51%
50%
Technology
Consumer electronics
manufacturing
Automotive
Food and beverage
Consumer packaged goods
Entertainment
Brewing and spirits
Telecommunications
Consumer health companies
Energy
Pharmaceuticals
Chemicals
Media
Banks
Financial services
+2
+2
+1
0
0
0
+2
+1
+1
0
+1
-1
-2
+1
0
TRUST IN INDUSTRIES, 2013 VS. 2014
Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics, 20-country global total.
5
2014 2013 2013 VS. 2014
FINANCIAL SERVICES CONTINUES TO BE THE LEAST TRUSTED INDUSTRY GLOBALLY
77%
73%
69%
66%
65%
65%
62%
62%
59%
59%
58%
56%
53%
50%
50%
Technology
Consumer electronics
manufacturing
Automotive
Food and beverage
Consumer packaged goods
Entertainment
Brewing and spirits
Telecommunications
Consumer health companies
Energy
Pharmaceuticals
Chemicals
Media
Banks
Financial services
48% 52% 52%
47% 46%
Financial services
Industry
Banks Credit cards/payments Insurance Financial advisory/asset
management
6
TRUST IN FINANCIAL SERVICES INDUSTRY – GLOBAL
Q61C-64C. [SPLIT SAMPLE] Now thinking about specific sectors within the Financial Services industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 27 -country global total
WHEN LOOKING AT SECTORS, BANKS AND CREDIT CARDS/PAYMENTS ARE MOST TRUSTED GLOBALLY, WHILE FINANCIAL ADVISORY/INSURANCE ARE LEAST TRUSTED
48%
62% 61%
54% 51%
29%
GLOBAL APAC BRIC Latin America North America EU
7
APAC AND BRICS ARE MOST TRUSTING OF THE INDUSTRY TRUST IN FINANCIAL SERVICES INDUSTRY – BY REGION
Q43-60. Financial Services Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27 -country global total and across APAC, BRIC, Latin America, North America and EU region
48%
76%
71% 70% 69% 68% 66%
63% 62%
57% 57% 56% 55%
50% 46%
44% 42% 40% 39%
37% 36%
32% 31% 31%
25% 24% 23% 23%
Latin America APAC North America EMEA
8
APAC COUNTRIES ARE MOST TRUSTING OF THE INDUSTRY TRUST IN FINANCIAL SERVICES INDUSTRY – 27 MARKET OVERVIEW
Q43-60. Financial Services Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27 -country global total and across 27 countries
9
TRUST IN FINANCIAL SERVICES HAS INCREASED OVER THE PAST YEAR IN 15 OF 27 MARKETS – GLOBALLY, TRUST IS ONE PERCENTAGE POINT HIGHER IN 2014 VS. 2013 2013 VS. 2014 TRUST IN FINANCIAL SERVICES INDUSTRY – 27 MARKET OVERVIEW
2013 2014
Q65-79. [TRACKING] Below is a list of companies. Please indicate how much you trust each company or organization to do what is right, using the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal” to do what is right. (Top 4 Box, Trust) General Population in 27 -country global total and across 27 countries.
47%
74% 74% 71% 72%
60% 59%
66%
59%
53% 53%
56%
0%
43%
38%
42%
46%
40%
42%
35% 37%
26%
33%
30%
31%
21%
28%
18%
48%
76%
71% 70% 69% 68%
66%
63% 62%
57% 57% 56% 55%
50%
46% 44%
42% 40%
39% 37%
36%
32% 31% 31%
25% 24% 23% 23%
49% TRUST IN BUSINESS
48% TRUST IN THE FINANCIAL
SERVICES INDUSTRY
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”.; Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27-country global total
GLOBALLY, TRUST IN THE FINANCIAL SERVICES INDUSTRY IS ONLY SLIGHTLY LOWER THAN TRUST IN BUSINESS
10
TRUST IN FINANCIAL SERVICES INDUSTRY VS. TRUST IN BUSINESS - GLOBAL
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%FINANCIAL
SERVICES
Industry Trust
(48%)
Business Trust
(49%)
11
TRUST IN FINANCIAL SERVICES INDUSTRY VS. BUSINESS IN GENERAL – 27 MARKET OVERVIEW
48%
76%
71% 70% 69% 68% 66%
63% 62% 57%
57% 56% 55%
50%
46% 44%
42% 40% 39%
37% 36%
32% 31% 31%
25% 24% 23% 23%
49%
64%
68%
63% 62% 62% 60%
65%
41%
55%
32%
57% 55%
48% 49%
54%
45%
33%
38%
45%
56%
49%
33%
43%
26%
34%
41% 41%
Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”.; Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27-country global total and across 27 countries
TRUST IN FINANCIAL SERVICES IS HIGHER THAN TRUST IN BUSINESS IN 12 OF 27 MARKETS, MANY OF WHICH ARE DEVELOPING
Financial Services Industry Business
78%
69% 67%
64% 64% 61% 59%
55% 55% 52% 49%
48% 48%
32%
Tech Co. 1 Pharma Co.
1
Tech Co. 2 Food & Bev
Co. 1
Food & Bev
Co. 2
Energy Co.
1
Energy Co.
2
Food & Bev
Co. 3
Pharma Co.
2
Tech Co. 3 Food & Bev
Co. 4
Pharma Co.
3
Financial
Services
Industry
Pharma Co.
4
Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27-country global total.
12
TRUST IN FINANCIAL SERVICES INDUSTRY VS. BLINDED COMPANIES – GLOBAL
TECH COMPANIES ARE MOST TRUSTED, WHILE FINANCIAL SERVICES AND PHARMA ARE THE LEAST TRUSTED
75% 75%
62% 61% 59%
42% 46%
29%
22%
27%
TRADITIONAL MEDIA ONLINE SEARCH ENGINES HYBRID MEDIA OWNED MEDIA SOCIAL MEDIA
Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where one means that you "do not trust it at all" and nine means that you "trust it a great deal". (Top 4 Box, Trust) General Population in 27-country global total.
13
TRUST IN MEDIA SOURCES – FINANCIAL SERVICES INDUSTRY TRUSTERS VS. DISTRUSTERS
TRUSTERS IN FINANCIAL SERVICES INDUSTRY DISTRUSTERS IN FINANCIAL SERVICES INDUSTRY
FINANCIAL SERVICES INDUSTRY TRUSTERS AND DISTRUSTERS ARE MOST TRUSTING OF ONLINE SEARCH ENGINES; DISTRUSTERS ARE LESS TRUSTING OF MEDIA SOURCES GENERALLY
CREDIBLE SPOKESPEOPLE – FINANCIAL SERVICES INDUSTRY TRUSTERS VS. DISTRUSTERS
19%
23%
32%
51%
27%
28%
44%
40%
58%
58%
57%
29%
45%
54%
55%
56%
57%
57%
65%
65%
73%
74%
A blogger
A government official or regulator
An entrepreneur
A regular employee of a company
A company's board of directors
A ceo of a company
A non-profit organization or ngo representative
A financial or industry analyst
A person like yourself
An academic or expert on that company's industry or issues
A technical expert within the company, such as an engineer or
scientist
Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) General Population in 26-country global total
14
EXPERTS & PEERS REMAIN THE MOST CREDIBLE SPOKESPEOPLE
TRUSTERS IN FINANCIAL SERVICES INDUSTRY DISTRUSTERS IN FINANCIAL SERVICES INDUSTRY
TWO | Building Trust
Edelman Trust Barometer research
reveals 16 specific attributes which
build trust.
These can be grouped into
five performance clusters listed here
in rank order of importance.
16 DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
RANKS ON A GLOBAL LIST OF TOP COMPANIES
OPERATIONS
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY
PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS
PURPOSE
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
PRODUCTS & SERVICES
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
HAS ETHICAL BUSINESS PRACTICES
INTEGRITY
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
TREATS EMPLOYEES WELL
PLACES CUSTOMERS AHEAD OF PROFITS
ENGAGEMENT
16 ATTRIBUTES KEY TO BUILDING TRUST
TRUST-BUILDING OPPORTUNITY
QUADRANT
BUSINESS IMPORTANCE VS. BUSINESS PERFORMANCE ON 16 TRUST DRIVERS - GLOBAL
17
STA
TE
D IM
PO
RTA
NC
E
STATED PERFORMANCE
ENGAGEMENT
INTEGRITY
OPERATIONS PURPOSE
PRODUCTS & SERVICES
HIGH-PERFORMING ON HIGH PRIORITIES UNDER-PERFORMING ON HIGH PRIORITIES
UNDER-PERFORMING ON LOWER EXPECTATIONS HIGH-PERFORMING ON LOWER PRIORITIES
Now tablestakes, in 2008
Operations were much higher
in importance for building trust.
ENGAGEMENT AND INTEGRITY: PRIORITY AREAS FOR COMPANIES TO BUILD TRUST
Q80-Q95. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not
at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/Extremely Important) General
Publics, 27-country global total.; Q114-129. Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9-
point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performing Extremely Well)
General Publics, 27-country global total.
21%
32% 31%
24%
30% 27%
50%
37%
32%
26%
34% 36%
30%
17%
27%
31%
23% 25%
15%
21%
25% 23%
22% 21%
12%
21%
13%
19%
14% 16%
COMPANY'S CEO COMPANY'S EMPLOYEE ACTIVIST CONSUMER ACADEMIC MEDIA SPOKESPERSON
18
MOST TRUSTED INFLUENCER TO COMMUNICATE EACH TOPIC - INFLUENCER MESSAGE MAPPING
INTEGRITY PURPOSE OPERATIONS PRODUCTS &
SERVICES
ENGAGEMENT
A COMPANY EMPLOYEE IS THE MOST TRUSTED SPOKESPERSON TO PROVIDE CREDIBLE AND HONEST INFORMATION
TOTALS
Q197-201(Global Summary). We would now like you to think about different types of information you may read, see or hear about a company. For each topic, please select which person you trust MOST to provide you with credible and honest information about a company. General Publics, 27-country global total.
47%
79% 82%
79%
60%
58%
53% 53%
29%
50%
36%
43%
48%
32%
38%
24%
32%
53%
25%
31%
26%
51%
91% 87%
85%
80%
78% 77%
74%
68%
64% 62%
59% 58%
53% 52%
52%
46% 42%
40%
38%
34% 33% 32%
28% 26% 23%
16% 15%
TRUST IN BANKS, 2009 VS. 2014
19
TRUST IN THE BANKING INDUSTRY HAS INCREASED IN DEVELOPING MARKETS BUT DECREASED IN MANY DEVELOPED MARKETS
Q11-14. [BUSINESS IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust) Informed Publics, 20-country global total.
N.A.
2009
2014
42%
60% 57% 56% 55%
52% 49% 49%
48% 47%
43% 42% 42%
38% 38% 38%
34% 33% 33% 31% 30% 29%
26% 26% 23%
53%
64% 63%
51%
81%
60% 58%
71%
62%
73%
51%
44%
64%
49%
38%
47% 45% 44%
57%
47%
36%
66%
32%
52% 49%
37%
61%
39%
20
INFORMED PUBLICS FAVOR INCREASED REGULATION OF THE FINANCIAL SERVICES INDUSTRY
Not Enough Regulation of Business
Not Enough Regulation for Financial Services
Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q262. When it comes to government regulation of the financial services industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q263. When it comes to government regulation of the energy industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q264. When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total.
TRUST IN FINANCIAL SERVICES VS. DESIRE FOR MORE REGULATION OF FINANCIAL SERVICES
21
COUNTRIES WITH HIGHER TRUST IN THE INDUSTRY HAVE LESS DESIRE FOR INCREASED REGULATION
Q11-14. [BUSINESS IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust) Informed Publics, 20-country global total.
Trust in Financial Services
Not Enough Regulation for Financial Services
53%
80%
83%
85%
85%
86%
PAYS APPROPRIATE LEVEL OF TAX
RESPONSIBLE SUPPLY CHAIN
MANAGEMENT
RESPECTS EMPLOYEE RIGHTS
PROTECTS CUSTOMER DATA
ENSURES QUALITY CONTROL IN
PRODUCTS
Q237-248. [SPLIT SAMPLE] How important are each of the following factors to building your TRUST in a company? Use a 9-point scale where one means that action is "not at all important to building your trust" and nine means it is "extremely important to building your trust" in a company. (Top 4 Box, Important in Building Trust) Informed Publics in 27-country global total.
22
TURNING ATTRIBUTES INTO ACTION: TOP RANKED POSITIVE BEHAVIORS WILL IMPACT ENGAGEMENT CLUSTERS
THE LINK BETWEEN THE TOP FIVE POSITIVE EFFECTS ON TRUST AND TRUST CLUSTERS
If companies exhibit these positive behaviors... …it will have its greatest impact in these clusters
ENGAGEMENT INTEGRITY
ENGAGEMENT INTEGRITY
ENGAGEMENT INTEGRITY
ENGAGEMENT INTEGRITY
ENGAGEMENT INTEGRITY
PURPOSE
PRODUCTS & SERVICES
PRODUCTS & SERVICES
79%
79%
80%
80%
81%
MISREPRESENTS THE COMPANY
SUB-STANDARD WORK CONDITIONS
IRRESPONSIBLE DURING A CRISIS
FAILS TO KEEP CUSTOMER
INFORMATION SECURE
UNETHICAL BUSINESS PRACTICES
Q226-236. [SPLIT SAMPLE] Please indicate whether each of the below actions would impact your trust in a company using a 9-point scale, where one means that action has "no impact on your trust in a company" and nine means it "has a significant negative impact on your trust in a company. " You can use any number from one to nine, the higher the number the more that action would have a negative impact on your trust in a company. (Top 4 Box, Negative Impact on Trust) Informed Publics in 27 -country global total.
23
NEGATIVE BEHAVIORS ARE MOST LIKELY TO AFFECT PERCEPTIONS OF HAVING AN ETHICAL BUSINESS PRACTICE THE LINK BETWEEN THE TOP FIVE NEGATIVE EFFECTS ON TRUST AND TRUST ACTIONS
ENGAGEMENT INTEGRITY
ENGAGEMENT INTEGRITY
ENGAGEMENT INTEGRITY
INTEGRITY
INTEGRITY
…it will have its greatest impact in these clusters If companies exhibit these negative behaviors...
A NEW TRUST ENVIRONMENT
24
84% believe a company can take
specific actions that both increase profits
and improve the economic
and social conditions in the
communities where it operates.
Operations and CSR programs are now
tablestakes. Business must focus on
Engagement and Integrity
to build trust.
CEO must become Chief Engagement Officer
There has been a significant change
in the trust environment since 2009.
Business must now lead the debate
for change.
People trust business to innovate,
unite and deliver across borders in a
way that government can’t. This trust
comes with the expectation and
responsibility to maintain it.
WE NEED TO EVOLVE…
Macro Micro
Shared Value(s) Transactional
Societal Expectations Legal Requirements
How and Why What
to include From only
BUSINESS TO LEAD THE DEBATE FOR CHANGE
26
Evaluate Establish transparent metrics. Report
frequently. Acknowledge performance
and amend as needed.
Advocate Offer a clearly articulated strategy that
delivers context. Engage and enable to
amplify. Create mass movement.
Participate Partner, listen and build relationships
to inform strategy.
On the cover, from top left: Japanese Prime Minister Shinzo Abe: REUTERS/Toru Hanai; Malala Yousefzai: REUTERS/Darren Staples; Brazilian Oil
and Gas Magnate Eike Batista: REUTERS/Fred Prouser; Anti-Government Protests in Turkey: REUTERS/Murad Sezer; Lord Justice Leveson, chair
of The Leveson Inquiry: REUTERS/Stefan Wermuth; Hong Kong Protests in Favor of Edward Snowden: REUTERS/Bobby Yip; U.S. Government
Shutdown: REUTERS/Mike Theiler
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