New FSCS research reveals improved consumer protection is top driver of trust in UK financial services
- On May 17, 2023
- By GrowthInvest Marketing
New research from FSCS shows a trusted compensation scheme boosts consumer confidence in the UK financial services industry and contributes to financial stability.
The Financial Services Compensation Scheme (FSCS) published new research, conducted with more than 2,000 adults in the UK, exploring the importance of a trusted compensation scheme in raising consumer trust and confidence in the UK financial services industry. The research highlights that awareness of FSCS, and the protections that the scheme provides, helps to boost consumer confidence in the industry for almost two-thirds of those surveyed (63%), with more than half (55%) agreeing that the scheme contributes to financial stability.
A similar number (63%) expressed that they are more likely to save, invest or spend more of their money when firms are FSCS protected, while 59% are more likely to recommend FSCS-protected products and providers. These findings indicate that a clear opportunity exists to leverage the role that FSCS plays in supporting investment into the UK and contributing to economic growth.
With the research highlighting ‘improved consumer protection’ as the top driver of trust, it’s vital that all stakeholders in the industry work together to further increase awareness and deepen understanding of FSCS and the protection it provides. While much has already been done on this, helping to improve trust and confidence in the industry, it is well-documented that low levels of trust in the sector continue to exist. The new research from FSCS adds further evidence, revealing only a quarter (25%) of consumers trust the industry to act in the best interests of its customers, with only utilities, a sector facing high consumer scrutiny due to price hikes and record profits, faring worse than financial services.
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