New research has highlighted a lack of trust in Australian consumers towards large financial services companies and financial advisers.
The report, by independent research provider Datamonitor, examines the shift in global consumer attitudes towards insurance services over the June 2009 to June 2010 period.
Australians are more likely to trust the advice of their friends and families, than that of financial service providers
According to the findings, Australians are more likely to trust the advice of their friends and families, than that of financial service providers. When asked ‘… to what extent do you trust the following when it comes to your finances (your banking, insurance, credit cards etc)’, 77% of Australian consumers said they make their own decisions, rather than seeking advice from brokers or financial advisers.
Another 35.4% said they trusted the advice of their friends and family when it came to their finances.
“Thanks to easy access to various forms of social media and the rapid distribution of communication services such as mobile internet, wireless hot spots, smart phones, Skype and instant messaging services few consumers are every truly cut off from their social networks, regardless of whether these are their friends and family or online communities.” said Andrew Haslip, senior analyst at Datamonitor.
Interestingly, the research did find that Australians trusted the big four banks with their finances, with 40.4% of those surveyed saying they “completely or greatly” trusted their national bank.
“This situation reflects the stable and well established position of the large domestic banks in the region, and is particularly important for the insurance market as many of the big banks are also active in the large home and car insurance markets,” concluded Mr Haslip.
