Financial services need more than regulation to restore confidence, report claims

8 November 2010

The reputation of the financial services industry needs more than new regulation for trust in the sector to be restored, authors of a survey have claimed.

A study by communications firm Hotwire revealed that almost two thirds of respondents felt that the banking industry needed to be more proactive to restore its reputation and do more than rely on the introduction of legislation.

Up to 34 per cent of respondents said that further transparency surrounding financial processes will help to rebuild confidence.

However, 28 per cent thought that increased transparency would lead to greater scrutiny, which would result in further negative sentiment being directed towards the industry.

Richard Janes, co-director of the Banking & Finance practice at Hotwire, said: “The findings demonstrate that those charged with managing the reputations of beleaguered banks face a tough task.

“However, the sector itself endorses the role of corporate communications in turning around public sentiment. This industry buy-in is the first step towards enhancing the communications efforts of the sector, ultimately focused on restoring confidence and pride.”

The study was undertaken by Vanson Bourne and saw more than 160 finance professionals quizzed on the future of the banking industry.

By Jim Ottewill

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