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Consumers rank credit unions as the “most trusted” financial service providers

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Credit unions top the list of financial service providers that consumers trust the most.

Less than one in five trust traditional banks or fast-growing fintechs (financial technology).

More than half of those surveyed reported a high level of trust in community-owned credit unions.

This compares to 39 percent of people who would have the same level of trust in An Post.

According to a survey commissioned by People Insurance and conducted by iReach of 1,000 people, only 18 percent feel the same way about traditional banks or fintechs – like Revolut or N26. People Insurance is behind insurance products sold by credit unions.

The survey found that fintechs are the most likely to inspire low levels of public trust. Traditional banks, An Post and the credit unions follow.

Traditional institutions such as the credit union and the post office primarily appeal to older consumers. However, new banking apps and fintech banking services appeal primarily to younger people.

About 77 percent of 18-24 year olds place a high level of trust in fintech, but only 8 percent of those over 55 trust the new digital payment apps.

The results are consistent with other surveys that have found high levels of trust in credit unions.

People Insurance chief executive Paul Walsh said it’s not surprising that credit unions and An Post enjoy a high level of trust as they are a cornerstone of local communities.

“But what’s interesting is that so few people feel the same way about banks, which have been a part of this country’s financial landscape for decades.”

He said fintech platforms have yet to gain public trust.

“Banks have the highest proportion of low consumer confidence, perhaps due to the post-2008 banking crisis, the tracker scandal and recent nationwide shutdowns. These can amplify over time and undermine public confidence,” Walsh said.

He said distrust of fintechs could be driven by the newness of the technology, low awareness of its functionality, concerns about cybersecurity and data usage, and the lack of a brick-and-mortar storefront, particularly among older consumers.

https://www.independent.ie/business/personal-finance/consumers-rank-credit-unions-as-most-trusted-financial-service-provider-41927252.html Consumers rank credit unions as the “most trusted” financial service providers

Fry Electronics Team

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