Here's a brain bender: We can share the same values, but not completely trust each other.
Humans hold complicated and sometimes contradicting emotions, so skepticism can exist even when there is alignment in deeply held beliefs. There's a complexity about trust that is reminiscent of the
At The American College Cary M. Maguire Center for Ethics in Financial Services, we wanted to better understand the dynamics of trust in the financial industry so we could uncover these contradictory dynamics. Our inaugural
That consumer's remark underscores a key takeaway from our research — consumers hold complex beliefs about financial companies. We found that for seven in 10 consumers (67%) alignment around values is key to understanding the mechanics of consumer trust. Today's financial services professionals need to know the consumer values that influence company use. Why? Because understanding consumers' values can help financial companies build trust with consumers.
Yet, awareness of, or even alignment with, consumer values is not enough to win consumer trust. What's needed is an understanding of consumers' unique reasons for trust, as this can help financial companies to close gaps in trust, and, thereby, build their trustworthiness. First, let's unpack the values.
There is a
A $35 million capital bump from a once-hostile investor group may have helped the Philadelphia bank avoid collapse. Still, it reported $30 million of quarterly operating losses and heavy securities risk in a recently filed call report.
While consumers desire values alignment, they are also cognizant of tradeoffs they must make due to practical considerations such as price, convenience and lack of choice. For instance, sometimes short-term budgetary constraints or maintaining longer-term financial goals take precedence over core values such as social justice and environmentalism. Much like the scenario that plays out with utility companies, it can be difficult for some consumers to completely avoid companies that don't align with their core values, as they may not be able to find a particular product or service otherwise. Yet, one deal breaker for consumers seems to be instances where they see a company treating people unfairly.
Consumers want companies to not discriminate and to treat all customers fairly. Some consumers will actively avoid using companies that they feel do not treat everyone fairly, though they acknowledge it can be difficult to completely bypass them.
As the financial industry considers how to manage the changing U.S. demographic landscape, understanding the nuanced trends in consumer viewpoints can inform efforts to close gaps in trust. Financial companies can position themselves as trustworthy to consumers by acting on what is important to them when it comes to placing their trust in a financial company.
For instance, from our research, we learned that financial companies could stand out as trustworthy to communities of color by acting on their differentiating reasons for trust. These are (in order of importance): provide a website/app with detailed information on products and services; train employees to understand different ethnicities and backgrounds, and to check on them throughout the year; have advertising that shows the company cares about people like them; demonstrate that employees share their personal values; offer services that are nearby, and that are used by those known in the community; and guide decision-making with pros and cons. African American consumers are significantly more likely to trust for this last reason than other consumers.
To benefit from financial products and services, consumers need to feel good about the institutions and professionals entrusted with their money. Leaders can develop an awareness of trust's relational and situational nature. It's a building block to gaining perspective on what motivates consumers' behaviors and their feelings about the trustworthiness of the financial institutions with which they have relationships.
