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The second report in our Trust research series.
New research by Insync and Entente reveals the big 4 banks that have worryingly low levels of customer trust:
- Only 29% of big 4 bank customers say their bank tells the whole truth, compared to 46% of customers of other banks
- A massive 22% of big 4 bank customers say their bank does not tell the whole truth
- The big 4 banks are trusted much less than other banks, with their average ENP® Trust Index at +18 compared to +39
- Westpac has the lowest Trust Index of +7 whereas the average mutual bank has a Trust Index of +57
- Older customers are much less trusting of their big 4 bank than other age groups, with many believing their bank puts profits ahead of customers
- The biggest drivers of trust in banks are telling the whole truth, setting realistic expectations and delivering on your promises
What this means for banks
Banks have been in the firing line for a while now, and our research shows just how much customer trust and belief in the big 4 banks has eroded. Now during the COVID-19 crisis all banks have an opportunity to become a much more trusted pillar of our society – but Australians simply do not trust or believe them right now.
This latest research is a big wake up call for the big 4 banks to build a whole new level of trust from the inside out, by starting to hard wire trust into their thinking, culture and systems. With the move to open banking, the rise of fintechs and the increasing ease of switching, trust in banks will play a much greater role in their future success and sustainability.
Trust is inspired by promises made, many of which are embedded in the marketing and communications of an organisation. This research shows that banks have a massive congruency gap between promises they have made, and their delivery.
This is a call for banks to take stock of the promises they are making, to whom, and understanding the expectations those promises are raising not just for their customers, but for all stakeholders. The increasing number of vulnerable customers as a result of COVID-19 could become a ticking time bomb for the banks if realistic promises are not made and if trust is not built with those customers during these times.
Insync has partnered with Vanessa Hall and her organisation, Entente Pty Ltd, to help organisations build and restore trust and track its movement over time.
After more than a decade of studying, observing and testing how trust is formed, and the causes of its collapse in all relationships and interactions, Vanessa Hall has deployed her proven ENP Trust Framework around the world.
About the research
This is the second report in our Trust Series and looks at levels of trust in Australian banks.
The research is based on data collected online from 5,000 respondents between February and March 2020 – prior to the full effects of the COVID-19 crisis.
Register for upcoming industry reports
Our upcoming Trust reports will focus on our local councils, utilities and employers across all industries. Our first report in the series uncovered the level of trust in Australian industry and retail Super funds.
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