Financial Services thrives on trust – oh dear!:: Edelman Trust Barometer 2012


More inconvenient truths for the insurance and banking sector! If it weren’t for the fact that, ultimately, WE FUND the marketing they need to portray themselves, their products and services as something they are not, I would love the delicious irony of an industry that SPENDS such outrageous amounts trying to SELL to us instead of INVESTING to make their marketing promises more of a reality, restore damaged reputations, offer greater value and make their employees roles more fulfilling!

Essentially this means that we pay a high premium, so an industry, [guilty of perpetrating “licensed fraud” such as PPI mis-selling] that we don’t trust, can continue to misrepresent itself and misinform us in an effort to obtain our hard-earned, tax paid, cash.

Does this constitute a win/lose relationship, or what!!?

They have become dependent upon our inertia and misguided belief that Politicians/Regulators will make things “better”. The lack of credible alternatives serves them well, as it maintains the income needed to sustain models that are crippled by the complexity they have created to, so efficiently, strip customer value for themselves.

The full presentation makes for interesting/worrying/challenging (delete as appropriate) reading, as does the Executive Summary (click on infographic) and but before tackling that, here is a little “teaser”.

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So, what are the messages that the genuine leaders of tomorrow can take from research such as this?

If you have what it takes you really shouldn’t need me to spell it out BUT here are a few clues:

expertise required (not salespeople)

referrals and recommendation (not sales)

business culture is critical

respect your “human capital”, and…

…give your employees a voice (with the means to communicate freely)

inertia isn’t the same as loyalty

Institutions and their leadership MUST CHANGE to (re)build trust

Of course there are other, less obvious, lessons to learn and it is one thing identifying the problems, another to tailor solutions to a particular business…but, if the process starts with recognition of the issues and a genuine desire to change, it is eminently “do-able”.

In a volatile and uncertain economy effecting change may be the difference between survival and extinction.  Innovators and “early adopters” will be the one’s to seize and retain competitive advantage.  

FINANCIAL SECTOR LEAST TRUSTED

2010 Report Updates: FS cannot function without trust


This is a “headline” so obvious that it may well be a contender for non-news item of the decade…

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So you would be entitled to assume that strategists within major banks and insurers would be busily scurrying around frantically innovating new products and services that simply ooze customer value. Frankly, anything that rebuilds trust and engenders loyalty, in an effort to undo the reputational damage done in recent years.

Yeah right. Customers aren’t really that important…yet!

I commented upon Edelman Trust Barometer & “Which?” reports earlier in the year – found at the following link:

Transparency – Trust – Trends – TRANSFORMATION

I know I have been going on about this for a long time now BUT, from the distinct lack of any change of attitude or strategy, it appears that the customer message has not been taken on board. Further evidence of the arrogance of FS and, in my humble opinion, a very serious mistake. As we enter, what will be, a difficult and painful period for UK (and beyond) the realisation that the perpetrators of so much of the financial misery have “escaped”, unscathed –  apart from a lot of Governmental and Regulatory rhetoric, will lead to a public backlash! Of course this has most serious implications for Government as society suffers.

FS firms who wait before offering truly innovative solutions and reintroducing customer value – instead of stripping it our for themselves and for their distributions channels – will only confirm, to the informed observer, that they have failed to learn any lesson from past, inglorious, failure.

To adapt the words of Warren Buffett “If value is what you take price is what you will pay

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