Nearly three in five people between the ages of 50 and 79 distrust financial service providers, according to a new survey by LiveMore.
The findings indicate that 59% of respondents in this age group have little faith in the industry, a concerning revelation given the sector’s ongoing failure to meet Consumer Duty obligations.
The recent survey closely follows one conducted by LiveMore in October 2022, which found a similar trust deficit at 58%.
Additionally, the report shows that women are more distrustful than men, with percentages of 61% and 57% respectively. The 70-79 age group registered the highest level of mistrust at 69%.
Leon Diamond, CEO and founder of LiveMore, said: “The industry needs to recognise that these aren’t just statistics, they’re individuals whose lives are being adversely affected.”
This lack of trust among consumers comes at a time when the Financial Conduct Authority (FCA) has criticised the industry.
The regulatory body published a review of lifetime mortgage sales, noting advice in many instances did not meet expected standards.
The FCA also identified 400 cases where promotions were amended or removed, further eroding consumer trust.
Consumer Duty, a set of guidelines aimed at ensuring good outcomes for customers, remains a central issue. LiveMore stresses the importance of a comprehensive affordability assessment before any mortgage decisions are made.
In a white paper published in June, titled “Consumer Duty: Why Later Life Lending is About to Change Forever,” LiveMore highlighted the benefits of adhering to Consumer Duty for the industry.
Diamond concluded: “As we look to the future, it is crucial that the 59% statistic falls sharply. We can achieve this if we all adhere to Consumer Duty guidelines and put the customer first.”
