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What should financial services institutions do to rebuild trust with consumers?
The 2011 Edelman Trust Barometer is out and it shows that financial services companies such as banks and insurance companies are struggling to rebuild trust with their customers after the financial crisis. In response to the question "How much do you trust the following industries to do what is right?"...
52% of respondents said Insurance
51% said Banks
50% said other Financial Services
These were the 3 lowest ranking industries. What specific recommendations do you have for these industries to rebuild trust with the American public? I am not looking for political or social rants - I'm looking for specific business and policy recommendations that can help here.
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1 Answer
Within any financial transaction (and relationship with clients), transparency is the quickest way to build trust. This relates to all forms of communication with clients and it's implied that everything being 'discussed' is in easily understandable terms. e.g. Sales presentations? Get rid of the jargon and mumbo-jumbo that only insiders are so keen on hearing among ourselves. After all, if your customers don't understand what you're talking about, what kind of communication is that anyway? The days of obfuscation and 'used-car' salesmen tactics need to be over. Keeping the mystery and elan of Wall Street alive through hieroglyphics etc - meant to awe inspire and bedazzle the client - have no place in building trust. It's an outdated approach and a barrier. Making each meeting with the client an educational opportunity is another improvement. Instead of relying on the old schmooze tactics used for "relationship building" e.g. "How are the kids/grandkids, blah, blah?", make yourself an essential learning resource for the client and watch the trust develop!
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