So what have we learnt this year? Each year Lansons Communications undertakes the ‘Search for Answers’, an in-depth study into consumer views’ on financial companies, how people make financial decisions and where they get financial information from. The latest results reveal that 2012 was a year that witnessed some defining changes in behaviours and 2013 looks set to be a year of even bigger change. Five things financial companies should've learnt in 2012 and a couple of things for 2013 1. The UK population views the whole financial services industry with more distrust than it did last year. And worth noting, they don’t differentiate between banks, insurers and fund managers, all are viewed the same. In total, half (49 per cent) of all UK adults now say they trust financial companies less than they did last year. In particular, traditional providers are faring worse than newer entrants. Even compared to themselves last year they are now viewed as less trustworthy, less innovative, less likely to offer value for money and less likely to care about their customers. 2. Customers are finally taking action. The PPI debacle hasn't been pretty but retribution is happening and many banks are now having to make extra provisions to deal with the problem. Added to this, there is evidence that people are actually changing bank accounts. Seven percent of the population say they have finally got round to changing their bank and this rises to one in ten 18-34 year olds. It’s been a long time coming but financial companies need to realise that customers are starting to vote with their feet. 3. 2012 was the year that saw a swing in the way people get their financial information. National TV has been the biggest loser for people wanting information on their finances, which is perhaps understandable as people are now looking for solutions for their personal financial problems rather than news on the wider economy which continues to remain challenging. Family and friends are the now single most used source for financial information. However there are differences in age, gender and earnings. For example personal finance sections are far more important to higher rate tax payers than the population as a whole (30 per cent v 17 per cent). But the big winner is… 4. The internet continues to be one of the most influential factors for financial services. Nearly two thirds (63 per cent) of the population now use the internet for their finances, over half the population (59 per cent) use the internet to get their news and half the population now use social media. Furthermore one in ten (14 per cent) of the population now go direct to financial companies websites to get their financial information. Companies need to decide their strategy or lose out. If you don’t know where your customers are going to get financial information how can you influence it? 5. Your customer base is undergoing some real hardship as 2012 witnessed people continuing to reduce everyday spending and with many having to supplement their income with savings where possible. It therefore follows that customers want to be listened to and want to know their financial provider understands what really matters to them. Furthermore the biggest demands are for clear information and consistent communications – financial companies need to be saying the same things to all parties, including their employees if they want to be seen as consistent So what should be on your agenda for 2013? It’s going to be an inflexion point for many financial service companies as we see the retail distribution take hold and global economic difficulties continuing. Interestingly it’s not all bad, for example many 18 to 34 year olds when told about RDR say they may be more likely to seek advice. What will be very hard for many financial companies next year is trying to understand the ‘zeitgeist’ and how to judge the less tangible influences on their customers’ behaviour to predict how they will make financial decisions. While this will prove difficult, there are many more way and means to engage with customers and their influencers if your company knows the ‘who, how and where’. Some financial companies look vulnerable as we head into 2013, in particular ‘traditional’ financial providers who look out of touch when it comes to their communications with customers. Consumer behaviour is changing, it’s time that financial companies did as well. The research was conducted by Opinium Research amongst a nationally representative sample of 2,000 people aged 18+ Written by Louise Bullock, Director of Lansons Communications