Do Consumers Trust Financial Services?

Customers need to be able to trust financial institutions and fintechs to keep their money safe, to protect their personal data, and to deliver reliable services that help them manage and use their money responsibly. However, trust in financial services is hard won and fragile. 

According to the 2023 Edelman Trust Barometer, financial services is one of the least trusted industry sectors in the world. Fifty-nine percent of the 32,000 global respondents to the firm’s 23rd annual trust and credibility survey trust financial services to do what is right. This is compared to 75% who trust technology and 71% who trust education and food & beverage companies — the top 3 most trusted industries. The only industry trusted less than financial services is social media. 

Looking deeper at the types of financial providers, MX’s previous research reveals national banks and credit unions were most trusted with their personal data. However, as technology advances and market dynamics change, there is rich opportunity for community banks, fintechs, and other technology providers. 

There are a myriad of factors that play into why a company or service may or may not be trusted. In the Power of Trust, the authors break down trust into four components — competence, motives, means, and impact. For the financial services and fintech industry, we translate these to the following core questions: 

• Are we delivering the functionality and experiences consumers want and expect? 
• Are we transparent in how we leverage consumers’ financial data to meet their needs? 
• Are we safeguarding financial data and implementing secure processes to support? 
• Are we driving positive outcomes for consumers to help them reach their financial goals?