Investors Have Little Trust in Financial Services

The recent global financial crisis did more than ravage investment portfolios, wipe out employment and force people out of their homes. It also obliterated trust in the financial services industry by the people who use it most – investors.

A new international study says a mere 53 per cent of investors in the United States, United Kingdom, Hong Kong, Canada and Australia have faith in investment firms. What’s more, the investors surveyed around the world said they have less respect for the financial services and banking industries than in other sectors such as telecom, consumer goods and pharmaceuticals.

It appears the “Too big to fail” period in recent history has created a lack of global confidence in the industry that handles our money. Read More…

This article has 7 Comments

  1. Sarah

    Not sure i agree here. I think part of the problem with fianncial services is they charge you and arm and leg to do very little. I am actually with Questrade for my stock investments and am the happiest girl on the planet. No fees and quick turn around service. I carry my ETFs, TFSA, and RRSP in separate accounts and made use of the free $50 when joining them so i am good. It all depends on who you join and ridding the unnecessary fluff that that other institutions try to upsell you. Just do your homework and learn to do things yourself with a firm that gives you the freedom to explore like Q.

    Take care.

  2. Holden Remmers

    Well of course they do! Can you name a time in history when investors didn't trust their financial services? I have been with RBC Royal Bank for 30 years and i still have little trust in them.

    This is natural and predictable. When our hard earned dollars are at stake we are always on the paranoid. 🙁

  3. Huy H.

    I think banks that we see today in their current form will adjust and become more streamlined to suit today's needs. Right now their mentality is still stuck in the pre-internet days.

  4. Hiram Y

    The 2008 scare was what did it but rest assured people are naturaly greedy and want to make money and so this is only a tiny sliver of what people think. People will do what they need to do to get their investment house in order.

  5. Adam P

    I still dont know how to invest properly so i am not concerned with overpriced services to manage it.

  6. Sammie P

    Hey do what i do and learn to gulp down a cold one and face reality. Trust is earned not given.

  7. Konrad

    Services vary from place to place in Canada. This is why i have moved away from brick/mortar banks and into online services which are more competitive with features.

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