Credit Unions top the list of financial service providers in terms of consumer confidence, with over half of respondents (51% ) to a new survey by Peopl Insurance reporting a high level of trust in the financial institution, compared to 39% of people who would place this same level of trust in An Post, and 18% who feel the same about traditional banks.
A new survey from Peopl Insurance of 1,000 people nationwide sought to gain insight into the levels of consumer trust towards four key financial institutions, and found that traditional banks and Fin Techs such as Revolut or N26 fall short, while Credit Unions top the bill, followed by An Post.
Key Findings from the Peopl Insurance Survey include:
There is a noticeable age distinction in the preferences for traditional and modern forms of banking, with traditional institutions such as the credit and post office appealing most to older consumers and new banking apps and Fin Tech banking services appealing most to younger cohorts. For example, 77% of those aged 18-24 placed a high trust value in Fin Techs, as opposed to 8% of over 55s
Fin Techs are the most likely to invoke a low level of trust from the general public (35% ) – followed by traditional banks (27% )
While regional and socio-economic profile keenly influences people’s trust levels around banks and Fin Tech – these factors are less impactful when it comes to how people feel about credit unions and An Post
Banks
More than one quarter of respondents (27% ) of adults have a low level of trust in banks, but just 18% have “high” trust in them
Men are more likely to have a stronger viewpoint (either way ) on the trustworthiness of banks
Those in the 45-54 bracket are most likely to have a low level of trust in banks (24% )
Credit Unions
Relatively small percentages across the age groups have low levels of trust in CUs when compared with the other financial institutions
An Post
Just 1 in 10 have a low level of trust in An Post
43% of those over 55 have a high level of trust in An Post – above the national average of 39%
Fin Tech Providers
35% of adults have low trust in Fintech providers such as Revolut, N26 or Bunq – this is higher amongst females (39% ), those over 55 (51% ), and those in the lower socio-economic bracket (43% )
Men and those in the ABC1 bracket are more likely to have a high level of trust in Fin Techs
Speaking of the findings, Paul Walsh CEO of Peopl Insurance said that as a cornerstone of local communities throughout Ireland for generations, it’ is perhaps unsurprising to find that credit unions and An Post garner such a high level of trust amongst the general public.
"What is interesting however, is that so few people extend the same sentiment towards banks that have been part of the financial landscape of this country for decades – just 18%, equalling that for Fin Tech platforms such as N26 and Revolut, which have only just entered the Irish market and have yet to earn public confidence through service and performance.
"Banks have the highest proportion of low trust sentiment amongst consumers, perhaps due to the banking crisis post 2008, the tracker scandal, and recent closures nationwide. These may compound to erode public trust over time.
It could also be that where other financial institutions have “customers”, credit unions have “members” and perhaps it is this community focused ethos which appeals to the public over banks or newer Fin Tech platforms.
The mistrust in Fin Tech is perhaps driven by the novelty of the technology, low awareness of its functionality, concerns around cyber-security and data uses, and the lack of a bricks-and-mortar shopfront, particularly among older consumers.”
Mr Walsh concluded that “earning the public’s trust as a financial provider is not an easy task, but it is absolutely crucial to any organisation that wants to have a meaningful impact on people’s lives for any real length of time.”
