Consumers don’t trust retailers any more than banks – studyby
Whilst High Street banks are generally on the receiving end of consumer mistrust and disloyalty, new research has shown just 11% of consumers trust retailers more than banks to handle their financial affairs.
Market research consultancy Rostrum Research surveyed 2,000 UK adults on where they would feel comfortable buying financial products and getting financial advice. According to the findings, 51% where they would feel comfortable buying financial products and getting financial advice while 38% indicated that they trust banks and retailers to the same degree.
When asked what would persuade them to choose a particular retailer over another for financial products, 40% said price was the most important factor, followed by an existing relationship with that retailer (29%).
Mark Houlding, CEO of Rostrum Research, said: “New entrants are looking to shake up the UK financial services market. Supermarkets and new types of financial services providers are attempting to take market share from the established players – but our research suggests that winning the hearts and minds of consumers will not be easy or straightforward.
“That said, by combining well-known brands with an established store network - a handful of these retailers, such as Tesco (33%), M&S (21%) and John Lewis (20%)*, are making progress in encouraging customers to trust their financial services offerings, particularly the all-important current account product. However, it remains to be seen whether these new players are able to really take a large share of the market.”
Recent research from Ipsos Mori and The Logic Group also focused on Tesco’s recently launched mortgage service and Sainsbury’s credit card initiative, and suggested that supermarkets are gaining a significant foothold in the personal finance market.