A new Deloitte survey has found that trust in the financial services has eroded due to many different elements, not least being the royal commission.
The survey commissioned examined the key trends that were impacting the industry and included the interviews with 1,005 Australian consumers.
Customers were more willing to trust their own financial services provider than the industry as a whole but even then, 47 per cent of customers did not trust their providers.
The financial services have taken a hit over the past 12 months, with the Deloitte report saying significant shocks included rising expectations, technological advances, competition and the royal commission.
In the past 12 months, nearly a third of respondents (32 per cent) said their trust had deteriorated, with the largest decline in trust being the banking industry where 42 per cent of respondents said their trust had deteriorated.
Only 34 per cent of respondents believed the industry could be trusted, with again the banking industry being the worst hit with only 9 per cent believing they were extremely trustworthy and 12 per cent believing they were extremely untrustworthy.
The key drivers of trust for customers were their providers having systems to protect data/privacy, being socially/ethically responsible and putting customers’ interests first.
The Deloitte report said that the results showed that one thing was clear to the financial services industry.
“The time to invest in rebuilding trust and engagement with customers is now. To do this requires a cultural shift which puts customers at the core. Fully embracing customer centricity should impact all levels of the organisation.
“In a future of open banking and increasing uncertainty, we believe investing in the right systems, partners and ecosystems will be key to survival,” the report said.