2012 edelman trust barometer: u.s. financial services and banking industries
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2012 EDELMAN TRUST BAROMETER: U.S. FINANCIAL SERVICES AND
BANKING INDUSTRIES
Winning back the license to operate
2 © Edelman, 2012. All rights reserved.
2012 Edelman Trust Barometer METHODOLOGY OVERVIEW
Twelfth Annual Study
Online survey in 25 countries
30,000+ respondents
1,000 general population respondents per country
Ages 18+
Oversample of informed publics*
500 respondents in U.S. and China & 200 in all other countries
Ages 25-64
(Trending data among Ages 35-64)
College-educated
In top 25% of household income per age group in each country
Report significant media consumption and engagement in business news and public policy
* This year Informed Publics were surveyed via online methodology instead of telephone
GENERAL PUBLIC
INFORMED PUBLIC 25-64
INFORMED PUBLIC 35-64
Regions APAC: Japan, South Korea, China, India, Australia, Indonesia, Singapore, Hong Kong, Malaysia EMEA: France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden, U.K., UAE, Russia North America: United States, Canada Latin America: Mexico, Brazil, Argentina EU: France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden, U.K.
3 © Edelman, 2012. All rights reserved.
WHY NOT JUST FOCUS ON REPUTATION? > TRUST and REPUTATION are inter-relational, not hierarchical.
> REPUTATION is invaluable, but doesn’t inherently provide license to lead.
WHY ACTIVATE TRUST?
REPUTATION is an aggregate "analysis" of past behavior
TRUST is an expectation of future behavior based on past performance
4 © Edelman, 2012. All rights reserved.
2012
WHAT IS THE STATE OF TRUST IN U.S. FINANCIAL SERVICES?
5 © Edelman, 2012. All rights reserved.
TRUST IN THE FINANCIAL SERVICES INDUSTRY
The U.S. is still more trusting of the Financial Services Industry than other developed economies; however, the Industry is only trusted by a majority of respondents in nine markets
Q16-26. [Financial Services TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust), General Population, 25-Country Global Total
APAC
EMEA
Latin America
APAC
North America
EMEA
GENERAL PUBLIC
50% 43%
72% 67% 66% 64%
61% 59% 57% 57% 56%
49% 46%
44% 41% 39% 39% 37% 34% 32% 31% 31% 29%
20% 18% 17% 16%
U.S.
6 © Edelman, 2012. All rights reserved.
TRUST IN THE FINANCIAL SERVICES INDUSTRY & TRUST IN BUSINESS – HEAT MAP INDEX
Trust in Financial Services is higher than trust in Business in 9 of 25 markets; the U.S. however, is more trusting of Business than Financial Services
Q16-26. [Financial Services TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box – Trust), General Population, Global 25-Country Total; Q11 -14. [Business in General TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust), General Population, 25-Country Global Total
Arg
en
tin
a
Au
stra
lia
Bra
zil
Can
ada
Ch
ina
Fran
ce
Ge
rman
y
Ho
ng
Ko
ng
Ind
ia
Ind
on
esi
a
Ire
lan
d
Ital
y
Jap
an
Mal
aysi
a
Me
xico
Ne
the
rlan
ds
Po
lan
d
Ru
ssia
S. K
ore
a
Sin
gap
ore
Spai
n
Swe
de
n
UA
E
U.K
.
U.S
.
Financial Services 39 46 49 56 72 20 17 57 59 66 18 32 39 67 61 37 31 34 44 64 16 31 57 29 41
Business 49 45 55 51 62 27 33 42 61 63 36 50 40 58 68 52 37 32 30 59 35 45 54 38 44
Difference -10 1 -6 5 10 -7 -16 15 -2 3 -18 -18 -1 9 -7 -15 -6 2 14 5 -19 -14 3 -9 -3
GENERAL PUBLIC
*Negative and positive numbers are difference
between industry and business. Positive numbers
and darker colors represent countries where the Financial
Services Industry is trusted more than Business overall
7 © Edelman, 2012. All rights reserved.
45%
47%
51%
53%
56%
59%
60%
62%
64%
66%
79% Technology
Automotive
Food and beverage
Consumer packaged goods
Telecommunications
Brewing and spirits
Pharmaceuticals
Energy
Media
Banks
Financial services 48%
50%
52%
57%
57%
60%
61%
64%
67%
67%
80%
2011
Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and U.S. & Informed Publics ages 35-64 in 18 country global total
TRUST IN INDUSTRIES – GLOBAL AND UNITED STATES
Technology
Telecommunications
Automotive
Food and beverage
Pharmaceuticals
Energy
Consumer packaged goods
Brewing and spirits
Media
Banks
Financial services
2012
Financial Services and Banking remain least trusted industries in the world
*Significant difference at the 95% confidence level vs. 2012 global
8 © Edelman, 2012. All rights reserved.
2012 2011
Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 in the U.S.
In the U.S., Financial Services and Banking have gained trust but remain at the bottom TRUST IN INDUSTRIES – UNITED STATES
83%
74%
74%
71%
66%
64%
56%
56%
48%
46%
41%
Technology
Consumer packaged goods
Food and beverage
Brewing and spirits
Automotive
Telecommunications
Energy
Pharmaceuticals
Media
Financial services
Banks
73%
54%
53%
51%
49%
48%
43%
38%
25%
25%
22%
Technology
Food and beverage
Brewing and spirits
Telecommunications
Automotive
Consumer packaged goods
Energy
Pharmaceuticals
Financial services
Banks
Media
+ 17
+ 13
+ 10
+ 18
+ 26
+ 20
+ 21
+ 13
+ 26
+ 18
+ 16
9 © Edelman, 2012. All rights reserved.
68% 69%
36%
29%
24%
35% 39% 41%
27%
22%
29%
21%
75% 72%
84% 85% 88%
82% 77%
83%
81% 83%
87%
90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2007 2008 2009 2010 2011 2012
US
UK/France/Germany
China
India
Q16-26. [Banks TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 35-64 in the U.S., UK/France/Germany, China, India, Japan and South Korea
TRUST IN BANKS
U.S. trust in banks did rise last year, but is still significantly below 2007-2008 levels
34 point decline since 2008
10 © Edelman, 2012. All rights reserved.
2012
HOW DO WE REACH FINANCIAL SERVICES INDUSTRY TRUSTERS AND DISTRUSTERS?
11 © Edelman, 2012. All rights reserved.
SEGMENT INDUSTRY TRUSTERS INDUSTRY DISTRUSTERS
Age
Gender 52% Male
48% Female
53% Male
47% Female
Bachelors+
Education 49% 48%
Income $
18-29 30-44 45-64 65+
19% 30% 40% 10%
FINANCIAL SERVICES INDUSTRY TRUSTERS VS. DISTRUSTERS BY SEGMENT (AGE, GENDER, EDUCATION, INCOME) – UNITED STATES
In the U.S., the Financial Services Industry must win back trust among distrusters ages 30-64
Q1. What is your current age?; Q6. Are you male or female?; Q7. What is the last grade in school you completed? [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S
18-29 30-44 45-64 65+
32% 31% 26% 11%
GENERAL PUBLIC
$10,000-$49,999 $50,000-$99,999 $100,000+
34% 35% 19%
$10,000-$49,999 $50,000-$99,999 $100,000+
41% 30% 14%
12 © Edelman, 2012. All rights reserved.
83% 79%
57%
77%
67% 64%
39%
31%
Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or not at all as a source of information about a company. (Trust, Top 3-4), General Population, 25 country global total; [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S.
U.S. Financial Services Industry trusters and distrusters are most trusting of traditional media; distrusters are less trusting of corporate sources
TRUST IN INFORMATION SOURCES – UNITED STATES
ONLINE MULTIPLE SOURCES
TRADITIONAL SOCIAL MEDIA CORPORATE
Financial Services Industry Trusters
Financial Services Industry Distrusters
GENERAL PUBLIC
13 © Edelman, 2012. All rights reserved.
Financial Services distrusters turn first to traditional media, are more likely than trusters to use online search engines for company announcements
Q183. And when a company makes an announcement, such as a new CEO or financial earnings, which type of source would you go to first to find information about the company's announcement? [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S.
GENERAL PUBLIC
40%
22%
18%
9% 7%
40%
28%
13%
7% 7%
36%
31%
11% 7%
4%
Traditional Media Online Search Engines Owned Media Hybrid Media Social Media
Financial Services Industry Trusters Financial Services Industry Swing Financial Services Industry Distrusters
FIRST SOURCE FOR COMPANY ANNOUNCEMENTS – UNITED STATES
14 © Edelman, 2012. All rights reserved.
67%
63%
35%
34%
33%
32%
28%
23%
Academic or expert
Technical expert in the company
NGO representative
CEO
Financial or industry analyst
A person like yourself
Government official or regulator
Regular employee
74%
71%
68%
62%
58%
47%
34%
31%
Academic or expert
A person like yourself
Technical expert in the company
Regular employee
NGO representative
Financial or industry analyst
CEO
Government official or regulator
Credibility of “person like me” and regular employee surges over the past year in the U.S.; CEO falls to the bottom two in 2012 CREDIBLE SPOKESPEOPLE – UNITED STATES
2012 2011
Q119-126. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in United States
+ 7
+ 14
+ 23
+ 39
+ 39
15 © Edelman, 2012. All rights reserved.
Q119-126. Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? Total Credible (3-4), [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S.
A technical expert in a company is the most credible spokesperson among Financial Services trusters, while a “person like yourself” is most credible among distrusters
79%
53%
Academic or Expert
60%
42%
NGO Representative
65% 57%
Regular Employee
49%
14%
Government Officialor Regulator
- 35 Gap
65%
15%
CEO
- 50 Gap
76%
27%
Financial or IndustryAnalyst
- 49 Gap
#2
#3 #5
#7 #5
#8
#3
80%
48%
Technical Expert inthe Company
Industry Trusters most
trusted spokesperson
#1 #4
#2 #5
#6
Financial Services Industry TRUSTERS
Financial Services Industry DISTRUSTERS
#8 #7
- 26 Gap
- 32 Gap
- 8 Gap - 18 Gap 74% 68%
Person Like Yourself
Industry Distrusters
most trusted spokesperson
#4 #1
GENERAL PUBLIC
- 6 Gap
CREDIBLE SPOKESPEOPLE – UNITED STATES
16 © Edelman, 2012. All rights reserved.
Once (1), 6%
Twice (2), 12%
Three times (3), 34%
Four or five times (4 - 5),
32%
Six to nine times (6-9),
6%
Ten or more times (10+),
10%
Three to five times (3-5)
66%
Q148. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to be exposed to something about a specific company to believe that the information is likely to be true? Please enter the number of times below. (Excludes ‘Don’t Know’ responses) Informed publics ages 25-64 in the U.S.
UNITED STATES
Skepticism requires repetition MAJORITY NEEDS TO HEAR INFO 3-5 TIMES TO BELIEVE
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2012
WHAT IS THE ROLE OF GOVERNMENT?
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Government performance is not meeting public’s expectations in the U.S. UNITED STATES
Q132-139. How important is each of the following actions to building your trust in government? Please use a nine-point scale where one means that action is 'not at all important to building your trust' and nine means it is 'extremely important to building your trust'. (Top 2 Box , Very/Extremely Important) General Population in United States; Q140-147. Please rate your government on how well you think they are performing on each of the following attributes using a nine-point scale where one means they are performing "extremely poorly" and nine means they are performing "extremely well". (Top 2 Box , Performing Very/Extremely Well) General Population in the U.S.
-57
-56
-55
-54
-37
-34
-35
-21
Gap
74%
74%
72%
71%
55%
54%
51%
37%
17%
18%
17%
17%
18%
20%
16%
16%
LISTENS TO CITIZENS' NEEDS AND FEEDBACK
COMMUNICATES FREQUENTLY AND HONESTLY
HAS TRANSPARENT AND OPEN PRACTICES
EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THECOUNTRY
CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACTLOCAL COMMUNITIES
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
PROVIDES NATIONAL TRAINING PROGRAMS TO CREATEEMPLOYMENT OPPORTUNITIES
PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TOADDRESS SOCIETAL ISSUES
Government Importance
Government Performance
GENERAL PUBLIC
19 © Edelman, 2012. All rights reserved.
Financial Services distrusters feel business is not regulated enough by government; over one quarter of trusters believe business is regulated the right amount
Q130. When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? [Trusters=Top 2 Box, Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S.
33%
27% 31% 31%
7%
47%
Too Much Right Amount Not Enough
Financial Services Industry Trusters
Financial Services Industry Distrusters
- 20 Gap
GENERAL PUBLIC
VIEWS OF GOVERNMENT REGULATION OF BUSINESS – UNITED STATES
20 © Edelman, 2012. All rights reserved.
Q131. Which of the following is the most important role that government should play in business? Informed Publics ages 25-64 in 25 country global total and U.S.
REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly 25%
Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries 16%
GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis 4%
BUILD INFRASTRUCTURE that promotes and facilitates business opportunities 19%
Government SHOULD NOT PLAY A ROLE in business 4%
PROTECT CONSUMERS from irresponsible business practices 31% 33%
24%
11%
21%
1%
8%
GLOBAL
THINKS THE MOST IMPORTANT ROLE THAT GOVERNMENT SHOULD PLAY IN BUSINESS IS:
Calls for greater protection and responsible behavior
21 © Edelman, 2012. All rights reserved.
2012
WINNING BACK “LICENSE TO OPERATE”
22 © Edelman, 2012. All rights reserved.
21%
31%
27%
47%
35%
35%
34%
31%
34%
32%
32%
33%
38%
56%
42%
39%
31%
44%
48%
49%
51%
54%
55%
57%
65%
66%
70%
71%
72%
73%
76%
76%
PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESSSOCIETAL ISSUES
RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS 'BESTCOMPANIES TO WORK FOR' OR 'MOST ADMIRED COMPANIES'
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITYIN WHICH THE COMPANY OPERATES
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITSBUSINESS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
PLACES CUSTOMERS AHEAD OF PROFITS
TREATS EMPLOYEES WELL
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
HAS ETHICAL BUSINESS PRACTICES -37
-34
-17
-34
-38
-38
-34
-31
-26
-21
-19
-16
-2
-21
-13
-10
Business not meeting public’s expectations in the U.S.
Gap
Q52-69. How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/ Extremely Important) General Population in the US (excludes ‘Don’t Know’ responses);Q103-118. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in the U.S.
UNITED STATES
Business Importance
Company Performance
GENERAL PUBLIC
23 © Edelman, 2012. All rights reserved.
Ethical business practices and listening to customer needs and feedback are the most important attributes to building U.S. stakeholder trust in Financial Services
Q70-85/Q86-101. Please think about businesses in the Financial Services Industry. How important is each of the following actions to building your trust in businesses in the Financial Services Industry? Please use a nine-point scale where one means that action is 'not at all important to building your trust' and nine means it is 'extremely important to building your trust'. [Top 2 Box, Trust - Very Important (8-9)], General Population, U.S.
FINANCIAL SERVICES INDUSTRY TRUST BUILDING ATTRIBUTES – UNITED STATES
38%
44%
45%
46%
54%
54%
55%
57%
65%
66%
69%
70%
71%
73%
74%
76%
PARTNERS WITH NGO'S, GOV'T, THIRD PARTIES TO ADDRESS SOCIETAL ISSUES
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
RANKS ON A GLOBAL LIST OF TOP CO's/BEST CO's
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
CREATES PROGRAMS TO POSITIVELY IMPACT LOCAL COMMUNITY
ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
COMMUNICATES FREQUENTLY & HONESTLY ON STATE OF ITS BUSINESS
TREATS EMPLOYEES WELL
TAKES RESPONSIBLE ACTIONS TO ADDRESS ISSUE/CRISIS
PLACES CUSTOMERS AHEAD OF PROFITS
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
HAS ETHICAL BUSINESS PRACTICES
GENERAL PUBLIC
SOCIETAL
OPERATIONAL
24 © Edelman, 2012. All rights reserved.
U.S. Financial Services Industry: societal attributes are more important to building future trust
Q16-26. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General population in the U.S.; Q70-85/Q86-101. Please think about businesses in the [INSERT INDUSTRY] industry. How important is each of the following actions to building your trust in businesses in the [INSERT INDUSTRY] industry? Please use a nine-point scale where one means that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust”. (Top 2 Box, Very/ Extremely Important) General Population in the U.S. (excludes ‘Don’t Know’ responses) * ‘Current Trust’ results based on regression analysis of the general population
41% TRUST FINANCIAL SERVICES INDUSTRY
1) Delivers consistent financial returns
1) Has ethical business practices
2) Listens to customer needs and feedback
3) Places customers ahead of profits
4) Takes actions to address issue or crisis
5) Treats employees well
6) Communicates frequently and honestly
7) High quality products or services
8) Has transparent and open business
9) Addresses society's needs
10) Positively impacts the local community
11) Delivers consistent financial returns
11) Highly regarded, top leadership
13) Works to protect/improve environment
14) Ranks on a global list
15) Innovator of new products
16) Partners with third parties
CURRENT TRUST BUILDING FUTURE TRUST
CURRENT TRUST DRIVEN BY OPERATIONAL ATTRIBUTES
Attributes that Correlate with Current Trust Most Important Attributes that Build Trust
Societal
Operational
GENERAL PUBLIC
25 © Edelman, 2012. All rights reserved.
Exercise principles-based leadership, not rules-based performance
Recognize that operational factors responsible for current trust won’t build future trust; societal and engagement behaviors will
Prepare for crisis, and if one occurs, do the right thing
Financial Services Industry needs to win back trust in order to re-earn license to operate
Use the channels and spokespeople who are most trusted
Build trust among those who don’t trust you yet
Exercise utilizing frequent communications channels
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