how do we rebuild confidence and trust in financial ... · how do we rebuild confidence and trust...
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How do we rebuild confidence and trust in financial services?
Annamaria Koerling, Head of Wealth Management
C. Hoare & Co.
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Financial services is the least trusted industry
Source: Daily Mail, Financial Times, The Guardian, Business Week & The Economist, Institute of
Management and Leadership
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New entrants are trusted more
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And are a disruptive threat
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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
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Trust has improved but is still low
Source: Edelman Trust Barometer 2016
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Public still wants even more regulation!
Source: Edelman
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Trust is won by behaviour and actions
Source: istockphoto
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“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
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Trust “must haves” for employees
Source: Institute of Business Ethics
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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
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Employees are your most powerful advocates
Source: C. Hoare & Co.
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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
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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
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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:
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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
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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
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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
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Aligning CSR to Business Values
“Our experience tells us that if we do the right thing profitable business
follows” Alexander Hoare
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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
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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
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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
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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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Important information
The information contained within this document is believed to be correct but cannot be guaranteed. Opinions constitute our
judgement as at the date shown and are subject to change. The document is not intended as an offer or solicitation to buy or sell
securities or any other investment or banking product, nor does it constitute a personal recommendation. Certain investments
involve a higher degree of risk than others and are therefore unsuitable for some investors. Investment strategies described may
not be appropriate for all investors. Before contemplating any transaction, you should consult your financial adviser.
The research and analysis contained herein have been procured, and may have been acted upon, by C. Hoare & Co. or a
connected company for its own purposes, and the results are being made available to you only incidentally. C. Hoare & Co. or a
connected company, and their customers, officers and employees, may have a position in, or engage in, transactions in any of
the securities mentioned.
In the unlikely event of C. Hoare & Co. being unable to meet its liabilities, The Financial Services Compensation Scheme will
come into operation. C. Hoare & Co. participates in the Financial Ombudsman Service. Further details are available on request.
Published by C. Hoare & Co., 37 Fleet Street, London EC4P 4DQ. C. Hoare & Co. is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority with firm reference number
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Published on 10th May 2016