Survey Shows Financial Industry Lacks Consumer Trust
Even though the economy has improved and the bad news of 2008 has faded, consumer trust in the financial services industry is not good, according to an article in Investment News. As they say, trust is hard to gain, easy to lose and even harder to regain.
A survey by Edelman, a public relations firm, conducted by interviewing 503 investors with $10,000 or more invested in liquid assets and/or mutual funds, revealed that 38% said their level of trust in the financial services industry had decreased over the last year. Fifty-three percent said it had remained the same and only 9% said that they trusted the industry more than they did a year ago. This is in contrast to expectations that investor’s level of trust would have increased substantially with the rise in the market since 2009 and the passage of time easing the pain associated with the historic financial meltdown of 2008.
Edelman also broke out the top 18% of the investor group as “entry level affluents.” Those investors had annual incomes of more than $150,000, investments of more than $100,000 and 92% had college degrees. These investors had somewhat more trust in large national banks, brokerage firms and investment banks compared to the broader, less affluent group.