Consumers Rank Credit Unions as ‘Most Trusted’ Financial Service Provider

Credit unions top the list of most trusted financial service providers.

Fewer than one in five people trust traditional banks or booming fintechs.

More than half of survey respondents reported a high level of trust in community-owned credit unions.

This is compared to 39% of people who would place the same level of trust in An Post.

Only 18% think the same of traditional banks or fintechs – such as Revolut or N26 – according to a survey commissioned by Peopl Insurance and conducted by iReach, which surveyed 1,000 people. People Insurance is the originator of insurance products sold by credit unions.

The survey revealed that fintechs are the most likely to cite low levels of trust from the general public. Next come traditional banks, An Post and credit unions.

Traditional institutions such as credit unions and post offices attract older consumers the most. However, new banking apps and fintech banking services appeal most to young people.

Some 77% of people aged 18-24 place a high value of trust in fintech, but only 8% of those over 55 trust new digital payment apps.

The results are consistent with other surveys that have found a high degree of trust in credit unions.

People’s Insurance chief executive Paul Walsh said it was no surprise that credit unions and An Post garnered a high level of trust given that they were the cornerstone of local communities.

“What’s interesting, though, is that so few people express the same sentiment toward the banks that have been part of this country’s financial landscape for decades.”

He said fintech platforms have yet to gain public trust.

“Banks have the highest proportion of low consumer confidence, possibly due to the banking crisis after 2008, the tracker scandal and recent nationwide shutdowns. These may worsen to erode public trust over time,” Walsh said.

He said distrust of fintechs can be driven by the newness of the technology, low awareness of its features, concerns about cybersecurity and data usage, and the lack of a physical storefront. , especially among older consumers.

Leslie M. Gill