Several financial services firms still feel the impact of the financial meltdown when it comes to reputation, according to the 2016 Makovsky Wall Street Reputation Study.
Nearly, 86% of respondents said that the perception of their company is still being impacted by the 2008 crisis.
Also, 33% of consumers said that they are unable to save following the crisis and instead living paycheck-to-paycheck, up from 29% in 2015.
Further, 91% of respondents said that they remain concerned about the possibility of another crisis in the future.
Twenty seven percent of the respondents said they have lost trust in the financial services sector, a 5% rise compared to the previous year, with data security identified as the top risk facing the sector.
Thirty eight percent of consumers believed a failure to protect personal and financial data as the biggest threat to a financial services provider’s reputation, while 86% said that unauthorised data access would likely lead to a switch to an alternative financial service provider
Further, 78% of consumers said that negative news about their existing financial provider could make them switch providers, while the same percentage said that they could switch providers due to lower costs or fees. Fifty four percent of consumers said that availability of advanced mobile technology could be another reason to switch providers.
Nearly a quarter (21%) of professionals said that differentiating their company from bad players was the greatest reputational concern to be addressed this year, a 16% rise compared to the prior year. Only 13% cited rebuilding trust in the overall financial system as the greatest reputational challenge, down from 33% in 2015.
Moreover, 74% of financial services professionals identified customer satisfaction as the most important issue impacting corporate reputation this year. Outpacing a strong brand was identified as a significant issue by 69%, reputation management and restoration by 66%, and judgment and transparency in handling a crisis by 66%.
Makovsky executive vice president Doug Hesney said: “The data makes clear that the financial crisis remains the prism through which Wall Street is viewed and judged.
“The collapse of Lehman, and all that came afterwards casts a long shadow over the reputation of the entire financial industry. Despite some headway, it is clear that these institutions must continue to persistently address reputational issues.”