Fishburn Hedges

26.05.2010

Job insecurity, complex offers and eroded trust in the institutions all contribute to people’s uncertainty about where to go for financial advice, but there is a real opportunity for the institutions that can get it right. 

These were the main findings from our focus group looking at what people are doing with their savings, and what might make them act differently, in the context of the global financial crisis still very much on everyone’s mind.

We talked to a group of people with a variety of ages and backgrounds with at least £10,000 in savings – either instant access or tied up for a maximum of 12 months. 

The fear barrier

Many in the group were worried about security of their jobs and therefore their finances, although all were in work or retired. But that sense of uncertainty meant that they rated security and access to their savings as more important than the chance of a higher rate of interest or investment return.

The knowledge deficit

Many accepted that they didn’t know enough about their savings and investment choices and the financial crisis has also had a seriously negative impact on people’s trust in institutions and Government, particularly in to providing honest advice or protection for consumers. 

As a result, many are unsure about where to turn to get the personal advice that they know they need.  In the absence of such information, they are unlikely to make any but the “safest” savings and investment choices.

What can you do

Our group showed that there is a real opportunity for banks, building societies and other providers of financial services to fill the information gap and use that contact to establish long-lasting relationships with new customers.

Clear explanations and personalised, human advice that recognises the powerful emotions involved in decisions about savings can help potential customers to take control of their finances and venture into new financial products.

See our previous Front Room on people and money and a more detailed discussion on What’s Next… for public trust.

Savings Frontroom from Fishburn Hedges on Vimeo.