There is an “alarming” lack of trust in financial service providers among those aged 50 to 79, according to a new survey from LiveMore.
59% in this age group have a lack of trust for the industry, which is very similar to the figure from a similar survey conducted by LiveMore in October 2022, which reported a trust shortfall of 58%.
Women were slightly more mistrusting than men, with percentages of 61% and 57% respectively. Meanwhile, the 70-79 age group displayed the highest level of mistrust, standing 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.”
LiveMore argues that recent criticisms from the Financial Conduct Authority (FCA) add another layer to this issue. The FCA published a critical review of lifetime mortgage sales, finding that the advice given in many cases did not meet the expected standards. The regulatory body also identified 400 instances where promotions had to be amended or removed altogether. Such findings tarnish the industry’s reputation and further erode consumer trust, LiveMore claims.
Consumer Duty, a set of guidelines aimed at ensuring good outcomes for customers, is at the heart of this issue, LiveMore says, and stresses the importance of a full affordability assessment before making any mortgage decisions.
LiveMore published a white paper in June entitled “Consumer Duty: Why Later Life Lending is About to Change Forever,”which highlights why adhering to Consumer Duty is beneficial for the industry.
Diamond added: “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.”