Regulation not enough to rebuild trust in financial services, survey finds

Three in five financial services professionals feel that regulation alone cannot restore the battered reputation of financial services firms, a new survey has found.

Regulation not enough: financial services
Regulation not enough: financial services
The joint survey from comms consultancy Hotwire and the Institute of Ideas found that financial services professionals saw the need to rebuild the confidence of the general public in the sector.

Hotwire’s Banking & Finance practice commissioned Vanson Bourne to research 164 people in the sector, with the agency interviewing a number of other high profile financial sector professionals.

The results also showed that 60 per cent of respondents believed that regulation would not be enough to restore confidence and pride in the UK banking industry.

Instead 58 per cent felt that corporate communications was key to improving the reputation of the sector. This compares with 34 per cent who said that increased transparency would help restore trust.

Only three per cent believed financial services companies have done a good job in communicating their dual responsibilities to shareholders and customers to date.

But the majority also pointed the finger at the media for negative perceptions around the industry – 65% feel the media play an active role in fuelling and encouraging negative sentiment towards financial services firms.

Richard Janes, co-director of the banking & finance practice at Hotwire, said: ‘The findings demonstrate that those charged with managing the reputations of beleaguered banks face a tough task.

‘However, the sector itself endorses the role of corporate communications in turning around public sentiment. This industry buy-in is the first step towards enhancing the communications efforts of the sector, ultimately focused on restoring confidence and pride.’

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