How do we rebuild confidence and trust in financial services?

Annamaria Koerling, Head of Wealth Management

C. Hoare & Co.

Financial services is the least trusted industry

Source: Daily Mail, Financial Times, The Guardian, Business Week & The Economist, Institute of

Management and Leadership

New entrants are trusted more

And are a disruptive threat

PSD2 will be a game changer

“Today’s banks have an opportunity to become central to

customers’ everyday transactions in the same way that

social media and online retailers have become central to

consumers’ everyday purchasing decisions”

Jeremy Light, Accenture

Trust has improved but is still low

Source: Edelman Trust Barometer 2016

Public still wants even more regulation!

Source: Edelman

Trust is won by behaviour and actions

Source: istockphoto

“Human relationships are key, through this

you can establish trust in a world where

corporate trust has diminished.”

“I'd just like to thank them for

being old school with a modern

twist.”

Source: U.S. Navy photo, Wikimedia Commons File http://commons.wikimedia.org/wiki/File:Bell_System_switchboard.jpg?uselang=en-gb

Quotations Source: Ledbury Research 2014

The importance of relationships

Trust “must haves” for employees

Source: Institute of Business Ethics

The importance of communication

Source: C. Hoare & Co. staff survey 2015

91%

89%

81%

76%

9%

11%

19%

24%

0% 20% 40% 60% 80% 100%

I am proud to say I work for the bank

I enjoy working for the bank

I feel the bank cares for its staff

I would recommend the bank to friends as agood place to work

Agree and Agree Strongly Disagree and Neutral

Employees are your most powerful advocates

Source: C. Hoare & Co.

Inflexibility

What makes customers unhappy

Profit

before

people

Lack of client

understanding

Impersonal

relationships

“It takes 20 years to build a

reputation and five minutes to ruin

it. If you think about that, you’ll do

things differently.”

Warren Buffett

Lend me your ears!

Source: Accenture: Gen D Financial Advisor Perceptions vs. Reality

“The first step in exceeding your customers expectations is to know

those expectations” Roy Hollister Williams

What really matters? Service with a capital S!

Financial advice

Range of products

Philanthropic activities

Events

Charges and fees

Interest rates

Access to relevant individuals

Key contact

Customer Service

Very important

Quite important

Not important

How important are various factors to the entrepreneurs:

Personalisation has the biggest impact

The Six Pillars™ are the universal characteristics of all brilliant customer experiences.

Strong performance across all six:

• Increases acquisition, via advocacy

• Creates long-term shareholder value

• Ensures market leading customer experience ranking

Personalisation has the most significant impact. KPMG Nunwood define this as:

Source: KPMG Nunwood

Using individualised attention to drive an emotional connection

Building an emotional connection

90%

66%

92%

67%

Satisfaction with main contact

C. Hoare & Co. 2014 Marketplace 2014

C. Hoare & Co. WM 2013 Marketplace 2013

Base size:

C. Hoare & Co. n=90; Marketplace n=504

"I know I'm not but I'm

made to feel like I am the

only fish in the bowl.” (55-

64, Female)

“C. Hoare & Co. are

customer-centric.

Customer, and not money

motivated.” (45-54,

Female)

Source: Ledbury Research 2014

CHC Market CHC Market

Social Purpose as a competitive advantage

‘There is no

contradiction

between

improving

competitive

context and

making a sincere

commitment to

betting society’ Michael E Porter, Harvard Business

Review

Aligning CSR to Business Values

“Our experience tells us that if we do the right thing profitable business

follows” Alexander Hoare

CEOs must engage

• A lot of CEOs believe that they don't need to engage with their customers or staff on a personal level

• But by adopting this approach, they are hurting themselves and their own reputation

• Customers and staff want openness and transparency

• CEO engagement improves the trust associated with a brand

• As a CEO, your online presence could make or break your company. With the rapid escalation of social media in modern marketing, it certainly doesn't hurt to tweet now and again

Source: http://www.business-cover-insurance.co.uk/insurancehelp/article/why-should-ceos-tweet.html

Source: istockphoto

Behaviours that drive trust

Source: Edelman, Rebuilding Trust in Financial Services 2016

‘Trust is the glue of life’ Stephen Covey

Integrity • Open and ethical business practices

• Takes responsible actions to address an issue or crisis

Engagement • Listens to customer needs and feedback

• Treats employees well

• Places customers ahead of profits

• Communicates frequently and honestly

Competence • Offers high-quality products or services

• Is an innovator of new products, services or ideas

Purpose • CSR programme aligned with business values

• Creates programs to benefit local community

Leadership • Has highly-regarded and widely-admired top leadership

• Delivers consistent financial returns to investors

Key steps to (re-)building trust

1. Openness is the single most important driver of trust

2. Start with your employees. If they don’t trust you your clients won’t either.

3. It is important for firms to have a social purpose

4. Find ways to listen to and get to know your customers

5. CEOs must engage, it all starts with the leaders

6. Getting the technology right is key, but remember in the end it is about people!

Source: istockphoto

Any questions?

“It is not the strongest of the

species that survives, nor the

most intelligent, but the one

most responsive to change.”

Charles Darwin, 1809

Source: Charles Darwin (20878765) iStock Photo

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Published on 10th May 2016