As the UK parliament decides on the nature of an inquiry into banking practice, a new 24-country study released today by Ipsos MORI finds the banking sector as the industry global consumers feel is most in need of greater regulation.
Some 37% of consumers around the world say banking has “too little” regulation, compared with 24% who say it has “too much”. Insurance is next on the list, with 35% saying it has too little regulation, followed by packaged food at 33%. At the other end of the scale are electronics, with 18% saying there is too much regulation.
Although banking tops the league, it is in Britain, and indeed the rest of Europe, where these views on banking regulation are most prominent. Seven in ten British consumers (68%) say there is too little regulation, a score followed by four other European countries: Spain (66%), France (65%), Belgium (60%) and Germany (59%).
This research was carried out in February 2012 – and the impact of the continuing problems in the European banking sector and recent issues for banks in Britain, particularly this week’s headlines about Barclays and other banks, will likely mean more consumers seeking tighter regulation.
Half of global consumers (51%) say that “operating transparently” is one of the most important issues for the financial services industry to address. This is followed by creating and maintaining local jobs (42%) and financial strength (39%).
Four in ten (39%) say “responsible lending practices” are the most important; however this is the number 1 issue in Britain and US.
The research also reveals a gulf between banks and payment companies (such as Visa and MasterCard) when consumers are asked about how favourable they are towards financial institutions, and whether they trust them. Ratings of the payment companies are very much stronger on both measures.
Managing Director of Ipsos MORI Reputation Centre, Milorad Ajder, said:
“The trust and favourability scores that the payment companies have received are more typical of consumer product companies than of financial institutions. This is because they share a number of traits with consumer products – they are visible, convenient and there when we need them to purchase the products and services we trust, coupled with not being embroiled in the financial crisis and the scandals that have tarnished the rest of the financial industry.”
Ipsos Global @dvisor
is a monthly online survey conducted by Ipsos via the Ipsos Online Panel system in 24 countries around the world.
For the results of the survey presented herein, an international sample of 19,216 age 18-64 in the US and Canada, and age 16-64 in all other countries, were interviewed. Approximately 1000+ individuals participated on a country by country basis via the Ipsos Online Panel with the exception of Argentina, Belgium, Greece, Indonesia, Ireland, Mexico, Poland, Russia, Saudi Arabia, South Africa, South Korea, Sweden and Turkey, where each have a sample approximately 500+.
The survey was conducted between 7th and 21st February, 2012.
Weighting was employed to balance demographics and ensure the sample's composition reflects that of the adult population according to the most recent country Census data available and to provide results intended to approximate the sample universe, (in the small number of developing countries where access to the internet is limited respondents are more likely to be affluent and well connected than the average member of the population.)