NEW YORK–New research offers insights into how consumers view various bank brands, as well as their level of trust in banks overall.
The new research from Brand Finance surveyed 19,000 consumers in 22 markets for how their opinions have changed in an era of major disruption to the industry, according to the company.
Among the findings was that the 2016 average trust score for U.S. banks was 64.9%, compared to 60.5% in the U.K., 77% in China, and the meager-by-comparison 47.0% in Spain.
“As global banks retreated after the Great Recession, the traditional banking model has changed,” said David Haigh, CEO of Brand Finance. “The prevailing trends suggest fintechs and niche challenger banks are biting into big banks’ profits and luring their customers away with better quality service at lower prices. Traditional banks tend not to be set up as quick innovators. Instead, they compete for customers’ trust and our research indicates which banks are the most trustworthy.”
According to the survey, results for the retail division of JP Morgan Chase clearly show that it has managed to stay relatively scandal-free, compared to its investment division counterpart, whose reputation has not recovered since 2008.
“In today’s social media-driven society, controversial statements such as those (CEO Jamie Dimon) has made on bitcoin and Trump, have led him to ‘trend’ globally, thus helping to bring the brand into the public eye and particularly to the attention of Millennials – who were found to be the most likely age bracket to switch to Chase,” Brand Finance said. “Adding to this, the brand is openly planning on both investing in and collaborating with fintechs, which is a tremendously enticing selling point for younger customers.
Citi was proven to be the second most popular bank that customers would be willing to switch to, the survey found.
“This coincides with the brand’s first major marketing effort since 2014,” noted Brand Finance. “The ‘Make It Here’ campaign, launched in early 2016, highlighted the smooth integration of Citi banking into everyday life and focused on the consumer’s wants and needs. This shows a clear shift from the brand’s previous marketing focus on functionality, to a more customer-driven effort, helping to increase customer loyalty. In addition, Citi’s Pathways to Progress initiative, empowering young, ambitious millennials to develop essential workplace skills, demonstrates the brand’s commitment to the younger generation, who were shown to be the age group most likely to switch between banks.”
Meanwhile, Brand Finance said it found to no one’s surprise that Wells Fargo was voted the least trusted bank, with a trust level of only 47.2%, following its account opening scandal.
Brand Finance said it found U.S. Bank has the most loyal customers, with 60.2% stating they were very unlikely to switch to competition. “This is largely related to the bank’s sales model that encourages branch managers to approach members in the community, predominantly local business owners, with the main aim of developing relationships instead of pushing a hard sale,” the company said.