This year, the Edelman Trust Barometer asked about the importance and performance of several behaviors regarding the financial services industry. The gaps shown in this graphic detail the divide in behaviors of financial services companies, including contributing to the greater good and effectively representing interests of all stakeholders.
Explore the results for more: www.edelman.com/trust2017
2. 2017 Edelman Trust Barometer
Methodology
2
28-country global data margin of error: General Population +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass Population +/-
0.6% (26,000+). Country-specific data margin of error: General Population +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200,
varies by country), China and U.S. +/- 4.4% (N=500), Mass Population +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global
General Online Population +/- 0.8 (N=16,100).
Informed
Public
9 years in 20+ markets
Represents 13% of total
global population
500 respondents in U.S.
and China
200 in all other countries
Must meet 4 criteria:
Ages 25-64
College educated
In top 25% of household
income per age group in
each country
Report significant
media consumption
|and engagement in
business news
General Online
Population
6 years in 25+ markets
Ages 18+
1,150 respondents
per country
All slides show General
Online Population unless
otherwise noted
17 years of data
33,000+ respondents
total
All fieldwork was
conducted between
October 13th and
November 16th, 2016
Online Survey in
28 Countries
Mass
Population
All population not including
Informed Public
Represents 87% of total
global population
3. 2016: The Inversion of Influence
3
Source: 2017 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business,
media and NGOs. Informed Public and Mass Population, 28-country global total.
Influence
& Authority
Influence
Authority
Mass
Population
85% of
population
48 Trust Index
15% of
population
60 Trust Index
Informed
Public
12pt
Gap
4. 2017: Trust Gap Widens
Percent trust in the four institutions of government,
business, media and NGOs, 2012 to 2017
4
Source: 2017 Edelman Trust Barometer. The Trust Index is an average of a country’s trust in the institutions of government, business,
media and NGOs.
Informed Public and Mass Population, 25-country global total.
21pts
19pts
18pts
53
60 60
44
48
45
2012 2016 2017
Informed
Public
15pt
Gap
9pt
Gap
A 3-point
increase in
the last year
12pt
Gap
Largest Gaps
Mass
Population
5. Average trust in institutions,
Informed Public vs. Mass Population
Trust Index
5
Mass Population
Left Behind
Source: 2017 Edelman Trust Barometer.
The Trust Index is an average of a country’s trust in
the institutions of government, business, media and
NGOs. Informed Public and Mass Population, 28-
country global total.
Trusters
(60-100)
Neutrals
(50-59)
Distrusters
(1-49)
45 Global
70 India
67 Indonesia
62 China
59 Singapore
59 UAE
52 Netherlands
50 Colombia
50 Mexico
47 Brazil
47 Canada
47 Italy
47 Malaysia
47 U.S.
45 Argentina
42 Hong Kong
41 S. Africa
41 Spain
41 Turkey
40 Australia
39 Germany
38 France
37 U.K.
36 S. Korea
36 Sweden
35 Ireland
34 Japan
34 Poland
31 Russia
The Mass Population
distrusts their
institutions in
20 of 28 countries
Mass
Population
Informed
Public
60 Global
80 India
79 China
78 Indonesia
77 UAE
71 Singapore
68 U.S.
62 Canada
62 Netherlands
61 Italy
61 Mexico
57 Malaysia
57 Spain
56 France
56 U.K.
55 Colombia
54 Australia
54 Germany
53 Hong Kong
51 Argentina
51 Brazil
50 S. Korea
50 Turkey
49 Japan
49 S. Africa
47 Sweden
45 Russia
44 Ireland
43 Poland
6. 2017: Mass Population Rejects
Established Authority
6
Mass population now has influence
and authority
Establishment left empty-handed
Influence
& Authority
8. How much do you
trust each institution
to do what is right?
8
9. Trust in All Four Institutions Declines
Percent trust in the four institutions of government,
business, media and NGOs, 2016 vs. 2017
9
Source: 2017 Edelman Trust Barometer Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that
institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust
them a great deal.” (Top 4 Box, Trust) General Population, 28-country global total
55
53
48
42
53 52
43
41
Business MediaNGOs Government
Two of four institutions distrusted
Neutral
Trusted
Distrusted
-2 -1 -5 -1
50%
20172016
10. Trust in Media Plunges to All-Time Lows
Percent trust in media, and change
from 2016 to 2017
10
Source: 2017 Edelman Trust Barometer Q11-620. [TRACKING] [MEDIA IN GENERAL] Below is a list of institutions. For each one,
please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust
them at all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) General Population, 28-country global total.
GDP 5 = U.S., China, Japan, Germany, U.K.
Y-to-Y Change+−
NeutralDistrust Trust
43 43
25
29
31 31 32 32 32 33 33
39 40 40
42 42 42
44 44 45 45
47 47 48 48
54 54
65 66 67
Global28
GDP5
Turkey
Ireland
Poland
Russia
Australia
Japan
U.K.
France
Sweden
S.Africa
Argentina
S.Korea
Germany
HongKong
Malaysia
Spain
UAE
Canada
Colombia
Mexico
U.S.
Brazil
Italy
Netherlands
Singapore
China
India
Indonesia
Distrusted in 82% of countries
50%
All-time low in 17 countries
-6-5 -5 -13-5 -6 -3 -2 -5 -3 -5 -15 -10 -10 -11 -6 -2 -1 -8-10-7-3-10+2 -6 -6 +2 +4+30
11. Trust in Government Further Evaporates
Percent trust in government, and change
from 2016 to 2017
11
Source: 2017 Edelman Trust Barometer Q11-620. [TRACKING] [GOVERNMENT IN GENERAL] Below is a list of institutions. For each
one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not
trust them at all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) General Population, 28-country global total.
GDP 5 = U.S., China, Japan, Germany, U.K.
Y-to-Y Change+−
NeutralDistrust Trust
41
47
15
20
24 24 25 25
28
31 32 32 33
36 37 37 37 38
40
43 44 45
47
51 51
69
71
75 75 76
Global28
GDP5
S.Africa
Poland
Brazil
Mexico
France
Spain
S.Korea
Italy
Colombia
Ireland
Argentina
U.K.
Australia
Japan
Malaysia
Germany
HongKong
Canada
Russia
Sweden
U.S.
Netherlands
Turkey
Singapore
Indonesia
India
UAE
China
50%
-1 -8 -2 -2 -1 -5 -10 -9 -5-8+1 -1 -7 0
Distrusted in 75% of countries
Declines in 14 countries
+1 -1 +3 +1 +1 0 +7 0 0 +8 +2 +9 +13 +10 -5 -3
12. Trust in NGOs Declines
Percent trust in NGOs, and change
from 2016 to 2017
12
Source: 2017 Edelman Trust Barometer Q11-620. [TRACKING] [NGOs IN GENERAL] Below is a list of institutions. For each one, please
indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust them at
all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) General Population, 28-country global total.
GDP 5 = U.S., China, Japan, Germany, U.K.
Y-to-Y Change+−
NeutralDistrust Trust
53
47
21
23
31
39
43
46 46
48
52 53 54 55 56
58 58 58 59 59 59 60 60 60 61 61
64 64
71 71
Global28
GDP5
Russia
Sweden
Japan
Germany
Ireland
Netherlands
U.K.
Poland
Australia
Turkey
France
UAE
S.Korea
Malaysia
S.Africa
U.S.
Canada
HongKong
Italy
Brazil
Colombia
Spain
China
Singapore
Argentina
Indonesia
India
Mexico
50%
-2 -2 -3 -2 -1-6 -3 -4
Distrusted 8 countries
Declines in
21 countries
-6 +10 0 +7 -3-4 -3 -3 -6 -2 -5 -2 -2 -4 +2 +1 -2 -3 -10 -6 +7
NGOs less trusted than
business in 11 countries
13. Business on the Brink of Distrust
Percent trust in business, and change
from 2016 to 2017
13
Source: 2017 Edelman Trust Barometer Q11-620. [TRACKING] [BUSINESS IN GENERAL] Below is a list of institutions. For each one,
please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you “do not trust
them at all” and nine means that you “trust them a great deal.“ (Top 4 Box, Trust) General Population, 28-country global total.
GDP 5 = U.S., China, Japan, Germany, U.K.
Y-to-Y Change+−
NeutralDistrust Trust
52 51
29
34
39 40 41 41
43 43
45 45 46 46
48
50 50
55 56 56
58 58
60 61
64 64
67 67
74 76
Global28
GDP5
S.Korea
HongKong
Russia
Poland
Ireland
Japan
Germany
Turkey
Argentina
U.K.
Spain
Sweden
Australia
France
Canada
Italy
Malaysia
S.Africa
Singapore
U.S.
Netherlands
Brazil
Colombia
UAE
China
Mexico
India
Indonesia
50%
-2 -4 -3-2
Distrusted 13 countries
Declines in 18 countries
-4 -5 -2 -9 -1 -2 +7 -6 -3 +5+1 +1 +2 +1 +1 0 +4 -6 -2 -2 -4 -2 +4 -3 +5-9
14. All-time Low for CEO Credibility
Percent rate CEOs as extremely/very credible,
2016 vs. 2017
14
Source: 2017 Edelman. Trust Barometer Q130-747 Below is a list of people. In general, when forming an opinion of a company, if you
heard information about a company from each person, how credible would the information be—extremely credible, very credible,
somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) General Population, 28-country global total, question
asked of half the sample.
GDP 5 = U.S., China, Japan, Germany, U.K.
Y-to-Y Change+−
NeutralDistrust Trust
37
18
23 23 24 25 26 27 27 27 28 28 28
31
34
36
38
40 40
42 43 44
48 48
51 52
55
61
70
Global
28-Country
Japan
France
Poland
S.Korea
Canada
Australia
HongKong
Ireland
Netherlands
Germany
Italy
U.K.
Sweden
Russia
Singapore
U.S.
Malaysia
Spain
Argentina
Turkey
China
Brazil
Colombia
Indonesia
S.Africa
UAE
Mexico
India
50%
-12 -11 -12-19
CEOs not credible in 23 countries
Declines in all 28 countries
-7 -9 -12 -16 -7 -10 -16 -15-15 -14 -5 -16 -10 -6 -8-13-12-11 -13-12 -15-17 -16-10 -12
15. United Nations Most Trusted
Multinational Institution
Percent trust in the three multinational institutions of the
European Union, United Nations and International Monetary Fund
15
Source: 2017 Edelman Trust Barometer. Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that
institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust
them a great deal.” (Top 4 Box, Trust) Informed Public and General Population, 28-country global total.
*The European Union is only asked of 11 European Countries.
NeutralDistrust Trust
Informed Public
General Population
51
69
60
39
57
46
European Union* United Nations International
Monetary Fund
EU distrusted in all 11
countries surveyed among
general population
IMF distrusted in 17 of 28
countries surveyed among
general population
16. Percent trust in the four institutions of government, business, media
and NGOs, pre-election, morning after, and post-election, 2017
Trust Volatility in the United States
16
Source: 2017 Edelman Trust Barometer Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that
institution to do what is right using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust
them a great deal.” (Top 4 Box, Trust) General Population, United States. “Pre-election” and “Post-election” audiences refer to the 2017
Edelman Trust Barometer U.S. sample; the “Supplementary Survey” audience refers to the 2017 Edelman Trust Barometer U.S. Post-
Election Supplementary survey.
Pre-Election Optimism
Followed by Plunging Trust
60
57
48 48
53
57
43 43
46 47
30
33
Business MediaNGOs Government
Two of four institutions distrusted
Neutral
Trusted
Distrusted
50%
Pre-election
Oct. 13 – Nov. 8, (n=800)
Post-election
Nov. 9 – Nov. 16, (n=350)
Supplementary Survey
Nov. 28 – Dec. 11
19. Majority Believe the System
is Failing Them
19
Source: 2017 Edelman Trust Barometer Q672-675, 678-680, 688-690.
For details on how the “system failing” measure was calculated, please refer to the Technical Appendix.
How true is
this for you?
Sense of injustice
Lack of hope
Lack of confidence
Desire for change
53
32
15
Not at all true
9 8 7 6 5 4 3 2 1
1 in 3 are
uncertain
Completely true
System failing System working
Approximately
20. 20
Source: 2017 Edelman Trust Barometer S8. Thinking about your annual household income in 2015, which of the following categories
best describes your total household income that year? S7. What is the last grade in school you completed? S9. How often do you follow
public policy matters in the news? S10. How often do you follow business news and information? General Population, 28-country global
total, cut by ‘system failing’ measure. For details on how the “system failing” measure was calculated, please refer to the Technical
Appendix.
Even Those at the Top Are Disillusioned
Percent who believe the system is not working
High-Income College-Educated Well-Informed
Top quartile of income College degree or higher
Follow business and public policy
information several times a week or more
48% 49% 51%
22. Percentage point change in trust in
each industry sector, 2012-2017
Sector Trends
22
Source: 2017 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to
do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you
“trust them a great deal”. (Top 4 Box, Trust) General Population, 25-country global total.
Trust in Financial Services Increasing
Faster Than Other Sectors
Consumer
Packaged Goods
6
Energy
9 11
Telecommunications
5
Food
& Beverage
3
Financial
Services
23. Lower
Trust
Financial Services Sector Least Trusted
Percent who trust each industry
23
Source: 2017 Edelman Trust Barometer Q45-429. Please indicate how much you trust businesses in each of the following industries to
do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you
“trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.
54
61
63
66
76
Higher
Trust
Financial
Services
Energy
Consumer
Packaged Goods
Food &
Beverage
Technology
24. Financial Services Trusted
in 2 of 5 Financial Centers
Percent trust in the financial services sector,
2016 vs. 2017
24
Source: 2017 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to
do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you
“trust them a great deal”. (Top 4 Box, Trust) General Population, 28-country global total.
GDP 5 = U.S., China, Japan, Germany, U.K.
Y-to-Y Change+−
NeutralDistrust Trust
54 53
35
45
55
60
65
Global 28 GDP 5 Germany U.K. Hong Kong U.S. Singapore
50%
+1+3 +4 +1 +6
Germany U.K. Hong Kong U.S. Singapore
25. Trust Gap in Financial Services
Sector Grows in 2017
Percent trust in business vs. trust in the
financial services sector, 2012 to 2017
25
Source: 2017 Edelman Trust Barometer. Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right
using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Q45-429. Please
indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same nine-point scale where one means that
you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust). General Population and Informed Public, 25-country global total.
43
47
48 48
51
54
48
50
51
52
56
62
2012 2013 2014 2015 2016 2017
Financial ServicesBusiness
47
50
49 49
53
52
54
58 58
56
62
63
2012 2013 2014 2015 2016 2017
11pt gap 8pt gap
Informed Public
General Population
26. Not Gaining Ground
Trust in financial services and sub-sectors,
2016 vs 2017
Financial Services Sub-Sectors
26
Source: 2017 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point
scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Q61A-65A. Now thinking about specific sectors within the
financial services industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that
you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust), question asked of one-fifth of the sample. General Population, 28-country global total.
*Asked as Mobile Banking/e-payments in 2016.
52
59 48
52
49
63
54
60
43
53
50
59
Financial
Services
Credit Cards/
Payments
Banks Insurance Financial Advisory/
Asset Management
Mobile Wallet/
E-Payments
Neutral
Trusted
Distrusted
50%
20172016
27. Lack of Faith in Global
Financial Services System
27
Source: 2017 Edelman Trust Barometer. Q658. For the statement below, please indicate how much you agree or disagree. (All
respondents except Top 4 Box, Agree), question asked of one-fifth of the sample. General Population, 28-country global total, and cut by
“system failing” respondents.
53%do not agree that
financial market reforms
have increased
economic stability
63%do not agree that
financial market reforms
have increased
economic stability
Among those who think
the system is broken
28. Support For Policies May Limit
Financial Services Sector Growth
28
Source: 2017 Edelman. Trust Barometer Q709-718 For each of the statements below, please indicate how much you agree or disagree.
(Top 4 Box, Agree) General Population, 28-country global total.
Nearly 1in2 agree 69%agree 72%agree
Protectionism Slower Growth
“The government
should protect
our jobs and
local industries,
even if it means
that our
economy grows
more slowly.”
“We need to
prioritize the
interests of our
country over
those of the rest
of the world.”
“We should not
enter into free
trade agreements
because they hurt
our country’s
workers.”
Protectionism
31. Systemic Distrust and
Fear Trigger Action
31
Source: 2017 Edelman Trust Barometer. Corruption Q685-687, Globalization Q681-684, Eroding social values Q676 and Q758, Immigration Q685,
Pace of innovation Q677. System is failing: Q672-675, 678-680, 688-690. For details on how the societal fears and the “system failing” measure
were calculated, please refer to the Technical Appendix. The margin of error for the countries scores was added and subtracted from the global
mean. Countries were considered above the global average if their score was higher than the global mean plus the margin of error.
Corruption
• • • • • • • • • • •
Immigration
• • • • • • • • • •
Globalization
• • • • • • • • • •
Eroding social
values • • • • • • • • • • • • • •
Pace of change
• • • • • • • • •
% Who agree
system is failing
53 72 72 67 67 67 64 62 62 62 60 59 59 57 56 55 55 53 52 51 48 48 42 42 36 35 30 23 19
Global
France
Italy
Mexico
S.Africa
Spain
Poland
Brazil
Colombia
Germany
U.K.
Australia
Ireland
U.S.
Netherlan
ds
Canada
Sweden
Argentina
Malaysia
Turkey
Russia
S.Korea
Indonesia
Japan
India
Hong
Kong
Singapore
China
UAE
10 countries with above-
average belief the
system is failing and
multiple fears
4 countries with above-
average belief the
system is failing – but
lack multiple fears
Above-Average Level of Fear
Above-Average Belief the
System is Failing
Countries with Multiple
Fears and Failing System
32. A Case in Point: U.S.
Trust Barometer Supplement: Post-U.S. Election Flash Poll,
1,000+ General Population Respondents, Nov. 28 to Dec. 11, 2016
32
Source: 2017 Edelman Trust U.S. Flash Poll Q14. Who did you vote for? Audience: U.S. General Population, grouped by “system failing”
segments and level of fear from the Trust Barometer. For details on how systemic distrust and societal fears were measured, please refer
to the Technical Appendix. Respondents were labeled as “fearful” if they were fearful of at least one of the following societal issues:
corruption, immigration, globalization, eroding social values, and pace of innovation.
System Failing
and Fearful Fearful
11
34
Trump Voters Clinton Voters
25
42
67%
are fearful
45%
are fearful
33. A Case in Point: U.K.
Trust Barometer Supplement: UK Supplement, 1,150 General
Population Respondents, December 23, 2016 to January, 7 2017
33
Source: 2017 UK Trust Supplement Q15. Did you vote…? Audience: UK General Population, grouped by ‘system failing’ segments and
level of fear from the Trust Barometer. For details on how the societal fears and the “system failing” measure were calculated, please
refer to the Technical Appendix. Respondents were labeled as ‘fearful’ if they were fearful of at least one of the following societal issues:
corruption, immigration, globalization, eroding social values, and pace of innovation.
System Failing
and Fearful Fearful
11
34
Leave
the EU
Remain
in the EU
10
44
54%
are fearful
27%
are fearful
34. Concerns Leading to Fears for Financial Services
Percent of respondents who are concerned
or fearful regarding each issue
34
Source: 2017 Edelman Trust Barometer. Corruption Q685-687, Globalization Q681-684, Eroding social values Q676 and Q758,
Immigration Q685, Pace of innovation Q677.
For details on how the societal fears were measured, please refer to the Technical Appendix.
69% Concerned
40% Fearful
55% Concerned
28% Fearful
56% Concerned
25% Fearful
62% Concerned
27% Fearful
51% Concerned
22% Fearful
Corruption Immigration
Eroding
Social ValuesGlobalization
Pace of
Innovation
Sanctions levied by DOJ
and SEC in 2016 reached
record level of
$2.43 billion
Unaccountable global
money movement
Cheaper labor yields
lower earning potential
Less access to
qualified talent
Sales pressure
outweighing
customer needs
Rocking the
cash-based economy
Privacy concerns
36. 36
Source: 2017 Edelman Trust Barometer, Financial Services
Do Things Differently
Enforce Radical
Transparency
Communicate
with a
Human Voice
1
Use Two-Way
Communication
2
Solve Real
Problems
with Tech
3 4
37. Peers Now as Credible as Experts
Percent who rate each spokesperson as extremely/very
credible, and change from 2016 to 2017
37
Source: 2017 Edelman. Trust Barometer Q130-747 Below is a list of people. In general, when forming an opinion of a company, if you
heard information about a company from each person, how credible would the information be—extremely credible, very credible,
somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible) General Population, 28-country global total, question
asked of half the sample.
1 Human Voice
“People in this
country have
had enough
of experts.”
– Michael Gove,
Member of Parliament, U.K.
1
60 60 60
48 46
43
37 35
29Apersonlike
yourself
Technicalexpert
Academicexpert
Employee
Financial
industryanalyst
NGO
representative
CEO
Boardof
directors
Government
official/regulator
CEO credibility decreased the
most, dropping to an all-time low
A person like yourself now tied
for most credible spokesperson
-3 -7 -5 -4 -7 -5 -12 -10 -6
38. 17
20 21
24
26
2121 22 23
31
26
23
53
38 37
33 32
30
28 29 29
25
22
29
16
22 22 21
23 22
9 9
11 11
13 14
Employees Most Credible
Most trusted spokesperson to communicate each topic
38
Source: 2017 Edelman Trust Barometer Q610. Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational performance, and
top leadership’s accomplishments? Q611. A company’s business practices, both positive and negative, and its handling of a crisis? Q612. A company’s employee programs, benefits and working
conditions, and how a company serves its customers and prioritizes customer needs ahead of company profits? Q613. A company’s partnerships with NGOs and effort to address societal issues,
including those to positively impact the local community? Q614. A company’s innovation efforts and new product development? Q615. A company’s stand on issues related to the industry in which
it operates? General Population, 28-country global total, question asked of one-quarter of the sample.
1 Human Voice
Company CEO
Senior executive
Employee
Activist consumer
Academic
Media spokesperson
Partnerships/
programs to address
societal issues
Business practices/
crisis handling
Financial earnings
& operational
performance
Innovation effortsTreatment of
employees/
customers
Views on
industry issues
39. Talk With, Not At
Which is more believable?
39
Source: 2017 Edelman Trust Barometer Q754. You are about to see a series of two choices. Each choice describes a different source of
information, a different format for presenting information, or a different style of communicating information. For each pair, we want you to
choose the one that you are more likely to believe is giving you the truth. While we know that some of these choices may not be easy,
please do your best to select only one of the two options given-the one that is most likely to be true most often. General Population, 28-
country global total, choices shown to half the sample.
2 Two-Way
Communication
51%
Personal
experience
49%
Data
62%
Company’s
social media
38%
Advertising
40. 40
Source: 2017 Edelman Trust Barometer Q754. You are about to see a series of two choices. Each choice describes a different source of
information, a different format for presenting information, or a different style of communicating information. For each pair, we want you to
choose the one that you are more likely to believe is giving you the truth. While we know that some of these choices may not be easy,
please do your best to select only one of the two options given--the one that is most likely to be true most often. General Population, 28-
country global total, choices shown to half the sample.
Official Sources Are Suspect
Percent who find each source more believable than its pair 2 Two-Way
Communication
55%
Individuals
45%
Institutions
71%
Reformer
29%
Preserver of
Status Quo
64%
Leaked
Information
36%
Company Press
Statements
41. Innovation Most Desired
Across Product Sets
Percent who feel each financial product/service is
most in need of innovation or new ideas
41
Source: 2017 Edelman Trust Barometer. Q659. Which of the following types of financial products or services do you feel is most in need
of innovation or new ideas? Question asked of one-fifth of the sample. General Population, 28-country global total.
31% 18% 24% 45% 45% 10%
Loans to
support the
purchase of
a home
Personal
insurance
products
Lending and
loan services
in general
Education
financing
Financial support
for small
businesses
Not sure/
don't know
3 Technology
42. Blockchain has Widest Trust Gap
Among Tech Subsectors
Percent trust in various technology industry
sub-sectors, informed public vs. general population
42
Source: 2017 Edelman Trust Barometer. Q63E-71E. Now thinking about specific sectors within the technology industry, please indicate
how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one
means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust), question asked of one-
fifth of the sample. General Population and Informed Public, 28-country global total
3 Technology
64%
70%
67%
72%
49%
60%
54%
63%
Blockchain Internet of Things Cloud Mobile/Telecom
Informed Public
General Population
43. Transparency Builds Trust for
Automated Investment Advice
Percent who think each are most likely to increase
trust in automated investment advice that might be
received from a web site or mobile app
43
Source: 2017 Edelman Trust Barometer. Q660. Which of the following are most likely to increase your
trust in automated investment advice that you might receive from a web site or mobile app? Question
asked of one-fifth of the sample. General Population, 28-country global total.
4 Radical
Transparency
36%
Easy access to
customer
service online
or by phone
40%
Simple, clear
explanations of
the investment
recommendations
50%
Simple, clear
explanations of
any costs
13%
Not sure/
don't know
Better-than-
average
results for my
investments
28%
44. Importance vs. performance of behavior in building
trust in a financial services company
Trust-Building Behaviors
44
Source: 2017 Edelman Trust Barometer. Q336-657. How important is each of the following behaviors to building your TRUST in a company? Use a 9-point scale where one means
that behavior is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 4 Box, Importance) Q344B-344M. How
well do you think the financial services industry is performing on the behaviors listed below. Use a 9-point scale where one means they are “performing extremely poorly” and nine
means they are “performing extremely well”. (Top 4 Box, Performing), question asked of one-fifth of the sample. General Population, 28-country global total.
Contributing to Greater Good
Critical for Financial Services
BehaviorsActions
Protects
Consumer
Data
85 / 69
Contributes
to the
Greater Good
83 / 61
Develops Innovations
with Positive Impact on
My Life and World
82 / 63
Leadership Effectively
Represents Interests
of all Stakeholders
81 / 61
16221920
4 Radical
Transparency
Data Security
& Privacy
Social
Purpose
Smart Technology
Investment
Solve Customer
Pain Points
Importance / Performance
Gap
2017 was a year of almost unimaginable upheaval. People in multiple countries rejected their government’s leaders or policies, demonstrating their dissatisfaction and distrust by electing reform or outsider candidates, voting to leave trading blocs, or refusing to support treaties negotiated by their governments. Business was rocked by corporate scandals that saw executives investigated and even charged with criminal acts. The mainstream media lost audience as people turned to social media and search for information, advertising results were questioned, and the specter of fake news left the public wondering what was true anymore.
The findings of the 2017 Trust Barometer provide a roadmap for understanding the forces shaping these movements and events, the shifts in influence and power as the tide of populist action sweeps across many western-style democracies around the world.
Very importantly, too, the Trust Barometer provides important insights for organizations seeking to understand and operate in markets both in and outside their continental borders.
Edelman has been studying trust for 17 years, and we are now in our 6th year of surveying an expanded sample across the general online population. This year, we spoke to more than 33,000 respondents in 28 markets.
In each country, the sample is nationally-representative, but do keep in mind that this is an online survey, so we can only be representative of the general online population, which in some markets will not represent the full population, especially in developing markets where the online population can be much smaller and the data can skew to those who have the relative affluence to secure online access.
Each year, we also oversample the Informed Public, a segment of the population that is higher-income, college-educated and highly-informed on business and public policy matters. This year, that represents about 13% of the global sample, and you'll see some slides where we compare that informed public against the mass population.
Last year’s shift in influence was about an inversion of the traditional pyramid of influence, and a separation of influence and authority.
Gone are the days of the traditional “pyramid of influence,” in which both authority and influence were concentrated in the hands of a small number of elite opinion-shapers. This model was predicated on the belief that the informed public had access to superior information, their interests were interconnected with those of the mass population and that becoming ‘an elite’ was open to all of those who work hard.
But today, due primarily to the democratization of information, we have seen the pyramid turned upside down. Influence now rests among the mass population, who talk to each other on social media or use search to access information, and no longer need to rely on the more “informed” population for ideas. Influence is no longer automatically granted to those in authority.
And, as we first saw in 2016 , the Mass Population’s view of the world—at a trust level of just 48—is vastly different from that of the top 15% who had a trust level of 60 in 2016.
In 2016, the barometer focused on the widening gap between the informed public and mass population segments. Unfortunately, instead of solving the problem, we have allowed this gap to grow even bigger. Trust inequality grew by 3pts over 5 years from 2012-2016. In 2017, it widened another 3 points, to where we now have a 15-point gap in the trust levels of the informed public and the mass population.
In many markets, that inequality is even greater. Leading the inequality scoreboard are the U.S. at 21 pts, the U.K. at 19 pts, and France at 18 pts.
We now live in a world where more than one-third of the countries are trusters among the informed public, while the mass population distrusts their institutions in 20 of 28 counties, and has trust in only 3 of them
This glaring inequality is a situation that is not sustainable.
In 2017, the mass population has used its broad-reaching influence to reassert its authority, rejecting both the influence and authority of the establishment.
This has left the informed public --those who once were at the top of the triangle--without either influence or authority, and scratching their heads wondering what happened to them. The details of this year’s Trust Barometer provide some answers as to what is happening.
First, trust in institutions has declined where it has reached crisis levels.
In today’s atmosphere of distrust, the unvirtuous, self-reinforcing cycle of societal fears interacting with a system that is highly suspect is reinforced and amplified by the radical changes in our media ecosystem, the long-term impact of which are as yet little-understood.
Each year we ask respondents to tell us how much they trust each of 4 institutions—business, government, NGOs and the media – to do what is right.
This year, we saw, for the first time ever, declines in all four institutions. This was the year that trust in media fell apart, plunging 5 points to a level nearly as low as government. Two of the four institutions are now distrusted, media and government.
NGOs, which long held a substantial lead as the most trusted institution, has seen that lead erode over the years, to where it is now barely more trusted than business. Business is just above the 50% mark which marks the dividing line between trust and distrust.
Media is an all-time low both globally and in 17 of the 28 countries we surveyed. It is now distrusted in 82% of countries with steep declines both globally and in almost every country.
We believe this shift may be related to the fact that many people believe the media is part of the established elite. More about this in a moment.
Government trust has been extremely low for several years and this year continues to evaporate further. Half the countries saw fresh declines with steep decreases in Mexico, South Korea, Australia, Canada and Russia. It is distrusted as an institution in 3 out of 4 countries.
NGOs declined in 21 of 28 countries, eroding the strong lead it once had as the number one most-trusted institution. In 11 countries it is now less trusted than business, which is shocking considering its traditional role as the institution that helps promote and deliver benefits to society.
There’s a prevailing feeling of that NGOs just aren’t getting things done. Their missions and purpose are in the right place, but a lack of action may be the cause for the decrease in trust.
While trust in media and in government are already at crisis levels, business at 52% trust globally is still above the line of distrust—but just barely.
In 2017, business trust declined in 18 countries, notably in Argentina, Canada, Colombia and Mexico. Today, business is distrusted in 13 countries and is in neutral territory (which is not the same as trusted) in 7 countries.
CEO credibility declined both globally, and in every single country we surveyed.
Only Mexico and India find CEOs to be credible. In the vast majority of countries, CEOs are not credible. In Japan, France, Poland, and S. Korea, less than 1 in 4 find CEOs to be credible.
UN is in trusted or neutral trust territory in 22/28 countries surveyed
Most trusted among informed publics (27/28 countries)
EU distrusted in all 11 EU countries
Trusted or neutral among informed publics in 8/11 EU countries
IMF distrusted in 17/28 countries surveyed
Trusted or neutral among informed publics in 21/28 countries surveyed
In the U.S., the election-driven sense of increased trust and optimism was short-lived.
If we compare the trust scores for those respondents who answered the survey before the election, to those who answered after the election, you see a marked decrease in trust levels for 3 of the 4 institutions. Fast forward to several weeks later, and trust levels have plunged to where all 4 of our institutions are now distrusted.
This year’s barometer showed institutions experiencing lower levels of trust. The yellow portion of the slide refers to the questions we asked respondents to help understand why their trust was low – why they no longer believe that the system is working.
****
Questions included:
Do you feel the system is working fairly? The answer? No.
The majority of people believe that the system is biased in favor of the elites, who are enjoying more benefits than everyone else. They are feeling left behind and they’re not happy about it.
Do people have hope that their hard work will be rewarded, providing hope that your children will have a better future of that the country is moving in the right direction? Again, the answer is no.
Do they have confidence in their current leaders? No.
Do they want change, a better deal? Yes.
The results were a bit stunning.
The takeaway: We’re living in a period where the general sense is that the system isn’t working.
Globally, the majority of respondents - 53% - believe that the system is failing them, that it is not fair, that it does not offer reasons for hope or confidence, and they want change. Only 15% believe the system is working, and approximately one in three are uncertain.
These 32% who are doubters can make the difference between a complete collapse, or they can become allies in restoring faith where it has been lost.
One of the most surprising findings is that the problem is now transversal—not just a mass vs. elites problem. Even among those who are higher-income, well-educated and well-informed, approximately half believe that the system is not working.
The takeaway: In the financial services sector, even your HNW individuals – many of whom are on the corporate/institutional side – have the same concerns.
Many companies might be tempted to run for cover—but people continue to ask business to play a leading role in not only delivering profits, but also contributing to improving the economic and social conditions in the community in which it operates.
Trust in FS is increasing faster than any other of the sector’s we survey in the trust barometer. It’s up 11 percentage points since 2012 (43%) and up 3 percentage points since 2016 (51% -> 54%)
It’s critical to understand, however, that since the global financial crisis, trust in financial services has had no where to go but up.
It’s not surprising, then, that we see financial services as the least trusted sector that we survey.
Amidst this sea of regulatory uncertainty, it is incumbent for business to undertake trust-building behaviors (which we’ll talk about soon) so the trajectory doesn’t stop
Key factors within the top 5 financial centers
Germany
Very little equity culture; anything riskier than a low-yield savings account is viewed as unwise
Deutsche Bank – share price hammered in Sept. 2016 surrounding fears that it didn’t have funds to cover mounting legal costs. Bank and Germany govt. both denied that bailout in cards.
UK
Uncertainty surrounding Brexit – potential for FS jobs out of London. UBS and HSBC both said they will move roughly 1K jobs from London to other European city
Regulation delays –MiFID II (Creation of single market for investment services and activities) until 1/2018, Basel III (global regulatory framework on bank capital adequacy, stress testing and market liquidity risk) until 4/2019
Hong Kong
Financial services comprises 17.6% of the GDP in HK
With regulation around capital and liquidity still pending, the question this market is asking is: Will competitiveness be affected if regulatory bodies tighten control of financial markets?
United States
US has taken actionable steps to improve lives; (CFPB); (legal action against corruption/bad practices); (fun, new easy-to-use products)
Singapore
Monetary Authority of Singapore (MAS) has committed $225 million to establish the country as a “regulatory sandbox” for fintech companies
As the country moves toward an increasingly e-payments focused society, MAS looks to streamline existing regulatory framework across in various payments/remittance regulations.
Here, we see the growing gap between the informed public and general population in business and the financial services sector.
Most startling is the five-point gap in 2016 has grown by three in 2017 to 8 points.
This only reinforces that financial services companies work to build trust and close this gap.
Here’s a snapshot of trust in FS generally and how it compares to the FS subsectors we survey. Notable here is that we don’t see any particular industry gaining ground YOY (and, in fact, saw trust erode 4 points from 2016 2017 in the mobile wallet/e-payments space).
A 2016 study by Chadwick Martin Bailey, a Boston-based consulting shop, may explain this falling trend. The most cited concerns over mobile wallets were identify theft, fees and privacy. We go into this in a bit more detail later, but as the pace of innovation grows, the more the general public seems to be concerned and fearful of it.
While the system continues to recover, it’s obvious that the general population hasn’t reached a consensus on reforms increasing the financial services system’s stability.
More than half of our respondents said they don’t agree financial market reforms have increased economic stability
In fact, among those folks who think the “system is broken,” calls for reform are even greater, as 63% of them said the same.
When we look at this question through the lens of larger financial centers around the world, this becomes more clear.
In the UK, we continue to see the uncertainty around Brexit. Concerning here is the potential move of financial services companies out of the city, as well as the UK’s potential divergence from the single market.
In the US, we see the potential clawbacks of the tenets of Dodd-Frank, including the Volcker rule and the powers and processes of bodies such as the FSOC and the CFPB
The failure of FS companies to act is going to affect their bottom line.
In this climate, there is broad support for policies that are not exactly business-friendly for financial services companies.
Nearly 1 in 2 are against free trade agreements
Trump abandons 12-nation Trans-Pacific Partnership, ending an era of multinational trade agreements. Signals his promise to follow through on “America First” approach.
69% believe we need to prioritize the interests of our country
72% believe that government should be doing more to protect jobs—even if it means that these policies result in slower economic growth.
This is where consequences occur. Financial services companies have an obligation to address these concerns.
Once people have lost faith in the system that is supposed to protect and provide for them, they become more susceptible to fears. It is these societal and economic fears that fuel the fire that leads to populist actions.
This is where the crisis in trust can have serious consequences. The list of 10 countries in red combine for an above-average systemic lack of faith and multiple above-average levels of fear. Of these countries, it’s a who’s who of recent populist actions.
Brexit in the UK
Election of Trump in the US
Overthrow of the Italian government’s reform package
France’s right-wing nationalist presidential candidate Marine Le Pen
Columbia opposing a peace agreement to end 50 years of war b/w gov’t and FARC
Populist leader Alvaro Uribe argued deal was too lenient on rebels and insisted tougher agreement was possible
Mexico’s populist presidential candidate Andres Obrador, the “leftist maverick,” uses messages that resonate with the underprivileged and angry
These changes (or coming changes) in government– all of these shifts in power occurred in countries that had a higher-than-average belief that the system is broken, as well as multiple societal and economic fears.
Here’s a case in point. We conducted a supplementary flash poll in the U.S. in the weeks after the Nov. 8 Presidential Election. As you can see, among respondents who voted for Clinton, about 1 in 3 were both fearful and also believe the system is broken. Another 11% were fearful, but did not necessarily believe the system is failing – a total of 45% who are fearful.
Compare that to people who voted for Trump, and you can see that a far higher percentage of Trump voters - 67% - are fearful.
This slide isn’t surprising. Vote leave had relentless focus on core messages – deliberately choosing heavily contested “facts” so public would be invited to fight them on it
The combination of populists Boris and Farage gave two-pronged approach, bringing both traditional Labour/Tory voters together
The reason the polls were so consistently wrong throughout the campaign was that they failed to factor in the so called “disengaged middle” in our segmentation i.e. the people who traditionally don’t vote. This time 2.8 million of them did, despite not having voted in Gen Election 2015 (and many never before). It was the once in a lifetime opportunity to kick the establishment and boy did they
We measured a series of societal and economic concerns commonly associated with populist movements and found broad agreement that these concerns are true.
So, a significant portion of the population found many of these to be so prevalent that we describe them to be not just concerned, but fearful.
On a 1-9 scale,
Respondents who are “concerned” chose a value of 6-9 on the questions represented in each of these categories
Respondents who are “fearful” chose a value of 8-9 on the questions represented in each of these categories
Ex. 62% are concerned about globalization. 27% are so concerned that they can be described as fearful.
So what must financial services companies do?
For the first time ever, “a person like yourself” is as credible as a technical or academic expert.
As we mentioned earlier credibility of CEOs is at an all-time low, with a 12-point decline in the last year. We also saw a 10-point drop for the board of directors and 7-point drop for financial industry analysts.
This can be attributed to a number of factors, including:
The pervasive distrust of the financial services sector, writ-large
Information quoting these sources may have be distributed via traditional media channels
Their expertise puts them in the “establishment” camp
Start with your employees. We have been saying this year after year, and still many companies believe their responsibility to employees is just about providing decent pay and benefits. While these factors are important, they are far from sufficient in today’s society.
Let’s be very clear: employees are your greatest assets.
As you can see, they are the most trusted spokesperson on every one of the six topics that we measure—including financial earnings, your innovation efforts, and your programs to address societal issues. And arguably, many of them have lost faith or are questioning the system.
You have the opportunity to ignite them as advocates for business and to help build their trust in the system by engaging to bring them into the dialogue.
According to our 2016 FS trust barometer, financial services ist he most trusted sector among employees working in an industry-related company.
HOW you engage and communicate must change. In every way, conversational communications are far more effective today than broadcast-style communications. Spontaneous speakers are more believed than those who seem rehearsed, blunt spokespeople are more believed than those who are diplomatic. People believe stories based on personal experiences over those based on data, and they believe what companies say on their social media pages more than they believe what they say in advertising.
You have to talk WITH people, not AT them.
In fact, any information coming from official sources is now distrusted. Today, people are more likely to believe that individuals are giving them the truth over institutions; they are more likely to believe what they hear from reformers vs those who seek to preserve the status quo, and leaked information is more believed than company press statements.
Here, we asked what types of financial products respondents felt was most in need of innovation or new ideas. The response, overwhelmingly, was weighted toward education financing and support for small businesses.
Student loan debt stats
$1.28 trillion in total U.S. student loan debt
44.2 million Americans with student loan debt
Student loan delinquency has a rate of 11.0%
This is the Trust/Awareness Gap Between General Population and Informed Publics in various forms of technology. You’ll notice the widest gap in blockchain, the system underpinning bitcoin.
The Takeaway: People trust the tech they know the best.
Here, we asked what was most likely to increase respondent’s trust in automated investment advice?
You see that transparency was king here, as a clear explanation of recommendations and costs sat at the top of the list.
There’s a critical breakdown in the financial services industry in all of these trust behaviors. You see the gap (those numbers in the white circles) is widest in the FS industry when it comes to behaviors such as contributing to the greater good effectively representing the interests of all stakeholders.
Leadership Effectively Represents Interests of all Stakeholders yields actions surrounding Solving Customer Pain Points
Big problem with banks is that they’re run by bankers. They’re experts at wringing every penny out of every dollar. They’re expert on the margin
Only 5-20% of global FS companies have anyone on their board knowledgeable about customer experience and FS marketing. Can’t take culture and innovation to next level.
Companies need to focus on solving consumers problems
Its more important to understand WHY your customers are asking for innovation – what is the problem that needs solving and why is it a problem? – rather than focusing on the next technology you’re going to acquire to beat your competition
Develops Innovations with Positive Impact on My Life and World yields actions surrounding Smart Technology Investment
Technological advances in applications (cloud computing/rise of mobile) have created companies that make finance cheaper and more accessible to a new generation of customers.
We’re at a point where incumbent FS companies are coming to a cross-roads with their fintech brethren.
Companies now must be digitally native, controllable by the push of a button on your smartphone half a world away.
Ex. Goldman Sachs has made investments in the payments, big data, blockchain and compliance/regulatory space (all within the last two years)
August 2015 – Goldman gives away trading technology to clients through open-source software
April 2016 – GS starts GS Bank - “Going from Wall Street to Main Street”
October 2016 – GS pushes forward “Marcus,” their new online lending platform targeted to small businesses
Contributes to the greater good yields actions surrounding Social Purpose
As financial institutions continue to transform how they operate, the need to shape consumer engagement and help push smart public policy becomes even more necessary
Protects consumer data yields actions surrounding Data Security & Privacy
Financial institutions need to be able to navigate this increasingly complex environment
Companies need to be proactive about safeguards they have in place while being fully transparent about the collection, use and protection of corporate and personal data