Why we don't trust the finance sector

Credit card lenders, brokers and insurers are among the least trusted executives in Australia, a new study shows.

In fact, consumers trust the Federal government and the much derided telecoms companies (remember Vodafail?) more than the financial sector – which emerged as the least trusted industry in Australia.

Three out of four Australians polled believe financial services firms and advisors put their own profit and corporate targets ahead of the best interests of customers, the research released by Yell Creative in partnership with YouGov, showed.

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Lack of transparency around the fees and charges structure was also a major source of mistrust.

Credit card lenders, insurers and brokers were hailed as the least trustworthy operators within the financial sector, while mortgage lenders, financial advisors and super fund providers were more highly regarded.

Worryingly, financial services emerged as the industry the public have the least confidence in – behind pharmaceutical, technology and telco firms and even the Federal government.

The mistrust may have something to do with the nature of the financial services, where customers get saddled with (often unexpected) bills, or subjected to surprise or exorbitant fees. This is particularly the case with credit card providers and insurance premiums.

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“The nature of the business means that customers may receive an unexpected surprise with penalty charges or around claims. Credit cards especially provide a regular reminder of debt with every statement, likely driving resentment and distrust,” the report states.

The longer a relationship a customer has with an organisation, the more trust is placed in them, which may be the reason why banks and super providers fare better.