by Ryan H. Law
Bad news, friends. According to the Edelman Trust Barometer financial services ranks dead last in trust, for at least the tenth year in a row.1
We rank behind consumer packaged goods, technology, automotive, and entertainment.
People trust mechanics and Hollywood celebrities more than they trust us.
Here is the percent of trust in each industry in 2021:
| Technology | 68% |
| Healthcare | 66% |
| Food & Beverage | 65% |
| Telecommunications | 61% |
| Consumer Packaged Goods | 60% |
| Automotive | 60% |
| Entertainment | 59% |
| Energy | 59% |
| Financial Services | 52% |
It wasn’t until 2015 that we even moved above the 50% line. 52% is not a number to be proud of.
We are failing in the trust category.
What is Trust?
Trust is a belief in another person or organization. When we trust someone we believe that they are honest, reliable, ethical, and competent.
Does it matter?
Stephen M.R. Covey says that trust is the one thing that changes everything, and the research backs this statement up.
In business, people who work at a company where trust is high2 report increased profits, decreased turnover, better relationship with colleagues and client, more energy, higher engagement, and less burnout.
In interpersonal relationships (including financial planning), trust creates more openness, which leads to more sharing of information, feelings, thoughts, and ideas.
Lisa Firestone on Psychology Today3 said that:
It is on this groundwork of trust that a person feels safest to reveal their real selves. As they peel back the layers of their defenses, they can start to recognize their unique wants and needs, what they wish to change or who they hope to become.”
I believe that NOTHING is more important than trust when it comes to the financial planner and client relationship.
In any industry there are going to be untrustworthy people. While we can’t change the entire industry, we can work to be as trustworthy as possible.
In Part 2 we will discuss the components of trust and how we can build trust with our clients.
REFERENCES AND RESOURCES
(1) https://www.edelman.com/sites/g/files/aatuss191/files/2021-01/2021-edelman-trust-barometer.pdf page 47
(2) https://hbr.org/2017/01/the-neuroscience-of-trust
https://www.psychologytoday.com/us/blog/trust-the-new-workplace-currency/201210/reality-check-do-you-know-the-impact-trust
(3) https://www.psychologytoday.com/us/blog/compassion-matters/201612/the-importance-the-relationship-in-therapy
See also https://www.conovercompany.com/trust-and-openness/ and https://onlinedegrees.bradley.edu/blog/building-trust-with-counseling-clients/
All images in this post are licensed by Ingram Image – Stock Photo Secrets (AFF).
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