Back in 2009, no industry in the United States took such reputation beating as the financial services segment. And to find out how much, we needn’t look any further than Harris survey research.
The Harris Poll Reputation Quotient study of American consumers is conducted annually. The most recent one, which was carried out during the 4th Quarter of 2014, encompassed more than 27,000 people who responded to online polling by Harris.
In the survey, companies are rated on their reputation across 20 different attributes that fall within the following six broad categories:
- Products and services
- Financial performance
- Emotional appeal
- Social responsibility
- Workplace environment
- Vision and leadership
Taken together, the ratings of each company result in calculating an overall reputation score, which the Harris researchers also aggregate to broader industry categories.
Most everyone will recall that in 2009, the U.S. was deep in a recession that had been brought about, at least in part, by problems in the real estate and financial services industry segments.
This was reflected in the sorry performance of financial services firms included in the Harris polling that year.
Back then, only 11% of the survey respondents felt that the financial services industry had a positive reputation.
So it’s safe to conclude that there was no place to go but “up” after that. And where are we now? The latest survey does show that the industry has rebounded.
In fact, now more than three times the percentage of people feel that the financial services industry has a positive reputation (35% today vs. 15% then).
But that’s still significantly below other industry segments in the Harris analysis, as we can see plainly here:
- Technology: ~77% of respondents give positive reputation ratings
- Consumer products: ~60% give positive reputation ratings
So … it continues to be a slow slog back to respectability for firms in the financial services field.
Incidentally, within the financial services category, insurance companies tend to score better than commercial banks and investment companies when comparing the results of individual companies in the field.
USAA, Progressive, State Farm and Allstate all score above 70%, whereas Wells Fargo, JP Morgan Chase, Citigroup, BofA and Goldman Sachs all score in the 60% percentile range or below.
Wendy Salomon, vice president of reputation management and public affairs for the Harris Poll, contends that financial services firms could be doing more to improve their reputations more quickly. Here’s what she’s noted:
“Most financial companies have done a dismal job in recent years of connecting with customers and with the general public on what matters to them. Yet there’s no reason Americans can’t feel as positively toward financial services firms as they do towards companies they hold in high esteem, such as Amazon or Samsung, which have excellent reputations because they consistently deliver what the general public cares about …
[Individual] financial firms have a clear choice now: Prioritize building their reputations and telling their stories, or let others continue to fill that void and remain lumped together with the rest of the industry.”
Here’s another bit of positive news for companies in the financial services field: They’re no longer stuck in the basement when it comes to reputation.
That honor now goes to two sectors that are Exhibits A and B in the “corporate rogues’ gallery”: tobacco companies and government.
Both of these choice sectors come in with positive reputation scores hovering around 10%.
I suspect that those two sectors are probably doomed to bounce along the bottom of the scale pretty much forever.
With tobacco, it’s because the product line is no noxious.
And with government? Well … with the bureaucratic dynamics (stasis?) involved, does anyone actually believe that government can ever instill confidence and faith on the part of consumers? Even governments’ own employees know better.