Survey finds credit unions are nation’s most trusted financial institution
Credit unions top the list of financial service providers in terms of consumer trust, with more than half of respondents (51%) to a new People Insurance survey reporting a high level of trust in the financial institution, compared to 39% of people who would. place the same level of trust in An Post, and 18% who think the same about traditional banks. A new survey of 1,000 People Insurance nationwide sought to better understand consumer trust levels in four key financial institutions, and found that traditional banks and Fin Techs such as Revolut or N26 fall short, while that credit unions top the list, followed by An Post.
Main results of the Personal insurance The survey includes:
- There is a noticeable age difference in preferences for traditional and modern forms of banking, with traditional institutions such as credit and post appealing the most to older consumers and new banking apps and Fin Tech banking appealing the most. younger cohorts. For example, 77% of 18-24 year olds place a lot of trust in Fin Techs, compared to 8% of those over 55.
- Fin Techs are most likely to cite low levels of trust from the general public (35%) – followed by traditional banks (27%)
- While regional and socio-economic profile strongly influence people’s level of trust in banks and fintech, these factors have less of an impact on what people think of credit unions and An Post
- More than a quarter of respondents (27%) of adults have low levels of trust in banks, but only 18% have “high” trust in them
- Men are more likely to have a stronger view (one way or the other) on the reliability of banks
- 45-54 year olds most likely to have low levels of trust in banks (24%)
- Relatively low percentages across age groups have low levels of trust in UC compared to other financial institutions
- Only 1 in 10 people have a low level of trust in An Post
- 43% of over 55s have a high level of trust in An Post – above the national average of 39%
- 35% of adults have low trust in Fintech providers such as Revolut, N26 or Bunq – this percentage is higher among women (39%), people over 55 (51%) and those belonging to the lower socio-economic bracket (43%)
- Men and those in the ABC1 bracket are more likely to have a high level of trust in Fin Techs
Speaking of the findings, Paul Walsh, CEO of Peoplel Insurance,
“As a cornerstone of local communities across Ireland for generations, it is perhaps unsurprising that Credit Unions and An Post garner such a high level of trust among the general public. What’s interesting though is that so few people express the same sentiment towards the banks that have been part of this country’s financial landscape for decades – just 18%, which is on par with Fin Tech platforms such as N26. and Revolut, which have only just entered the Irish market and have yet to earn public trust through service and performance.
Banks have the highest proportion of low consumer confidence, possibly due to the post-2008 banking crisis, tracker scandal and recent nationwide shutdowns. These can compound to erode public trust over time.
It could also be that where other financial institutions have “customers”, credit unions have “members” and it is perhaps this community-oriented philosophy that draws the public over banks or new Fin Tech platforms.
Distrust of Fin Tech is possibly driven by the newness of the technology, low awareness of its functionality, concerns about cybersecurity and data usage, and the lack of a physical storefront , especially among older consumers.
Mr. Walsh concluded,
“Earning the public’s trust as a provider of financial services is no easy task, but it’s absolutely crucial for any organization that wants to have a meaningful impact on people’s lives for real life.”