In its report, How financial services lost its mojo – and how to regain it, PwC found half of those surveyed believe regulation of the financial services sector has been strengthened in the wake of the crisis.
However, a greater proportion (57%) do not believe reforms that have been implemented are sufficient to ensure that history will not repeat itself.
The research also found, perhaps unsurprisingly, that consumers’ personal experience with financial advisers is generally the most significant factor in determining the level of trust. However, it was press coverage that was cited as the most significant influence on people’s trust in fund managers.
“The asset management industry’s traditional response to concern about consumer mistrust has been to stress goals such as greater transparency,” the report read.
“However, the survey suggests the impact of further work of this type might be relatively limited, at least in isolation. Though greater transparency is the single improvement most likely to rebuild consumer trust in financial services, even here fewer than one in two people (46%) would be impressed by such changes.”
Mark Pugh, UK asset management leader at PwC, said the lack of trust in fund managers and financial advisers partly reflects a failure of providers to articulate the value they are offering.
“Providers must find new ways to explain the services they are providing, encourage consumers to voice their goals, priorities and expectations, and to respond to these,” he said.
“Taking genuine and transparent steps to satisfy customer goals, priorities and expectations, especially where there is no obvious short term gain – or even a clear cost – to the provider, is a response we’re starting to see more of.”
