Financial Institutions Are Facing A Crisis Of Confidence – Here's How Some Banks Are Building Trust Among Anxious Consumers

In the wake of the Silicon Valley Bank collapse, the second-largest bank default in U.S. history, it’s more important than ever for banks to proactively reassure customers and strengthen their reputation as  trustworthy institutions.   

That hasn’t been easy in an economy where consumer trust in financial services has been on the decline since the start of the pandemic. Across the industry, brands are seeing consumer trust go down year-over-year. The 2022 US Banking Digital Trust Benchmark report found that consumer trust in their current primary bank or credit union dropped from 48% in 2021 to less than 42% in 2022. 

As inflation continues to rise and the Fed continues to raise interest rates, consumers are going to prioritize trust more and more. In fact, among financial services, the banking industry showed the most disparity in trust according to a Forrester survey. 

That suggests that consumers are extremely discerning when it comes to picking a bank and that the effort banks put into differentiating themselves on trust can go a long way toward improving customer loyalty. Here’s how Blend’s BLND cloud-based banking platform is helping banks build that foundation of trust. 

How The Most Trusted Financial Service Companies Defy The Trend Of Declining Trust

As trust in financial services erodes, a few brands have been able to swim against the tide. Here are the keys to building and preserving consumer trust, according to research. 

Better Engagement And More Empathy

While digital speed and convenience are becoming non-negotiables, the responsibility falls on banks to find ways to preserve the empathy and engagement of human-driven services that can be lost when transitioning to a tech-driven approach. 

This is especially important in the current economic client in which many consumers are anxious about their financial health. Inflation is driving up the cost of living while rising interest rates are making it more expensive to buy homes, cars and other big purchases that are typically financed.

Right now, financial institutions seem to be falling short. Only 54% of U.S. customers say their primary bank exhibits empathy, but the same survey found that empathy was the second most important factor, after dependability, for earning trust. 

Banks that offer a mix of digital tools, personalized recommendations and offerings, and a proactive approach to customer service are winning customer loyalty. Blend makes it easy for banks to leverage data and automation to proactively deliver financial solutions tailored to each customer. 

Robust Security Across Digital Channels

In the modern, tech-driven economy, consumers demand the convenience and simplicity of digital banking tools. But the decreased human touch that comes with a digital-first approach can also make customers more concerned about fraud and privacy risks. 

That concern is not unfounded as 33% of consumers worldwide have already been the victim of a data breach. When breaches happen, 21% of consumers stop using the company that was targeted, making stronger data protection tools essential not only for protecting consumers but for improving customer retention. 

Create A Positive Customer Experience 

A simple, intuitive user experience with responsive and helpful customer service available on demand is one of the key differentiators between a trusted financial institution and its competitors. When applications or platform services are complicated or difficult to navigate, that frustrating user experience reflects on the brand. When customer service is unavailable or hard to reach, consumers understandably feel like their bank doesn’t care about them. 

That means the first step to establishing trust is delivering a banking experience that makes it easy to navigate their accounts and financial products easily and get answers to their questions when they have them. 

With Blend’s consumer banking software, banks and credit unions can offer a deposit account application process that takes as little as two minutes to complete via a user-friendly interface that guides them through the process. With Blend co-pilot, customers can get real-time assistance inside the app while the customer service provider can see the customer’s application and immediately understand where they’re at and what the problem is. 

This creates a seamless hybrid experience in which customers get the best of both worlds: simplified, digital-first service with personalized, human support when and where they need it.

Featured photo by Bruce Mars on Unsplash
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