Trust in banks remains low among general public

The results from the 2022 éist report show that the trust score for the general public continues to be low, with a score of -25

The results from the 2022 éist report show that the trust score for the general public had risen by three points from last year. Picture: Denis Minihane.

Trust in Irish banks remains low among the general public with a score of -25, according to a report by the Irish Banking Culture Board (IBCB).

The results from the 2022 éist report show that the trust score for the general public had risen by three points from last year.

The negative score indicates that a higher number of people said they had low trust in the banks compared to the number who said they had high trust.

The SME sector recorded an increased level of trust at -7. This marks an increase of six points from the previous year. 

Farmers were found to be a community with a significant absence of trust towards banks. The cohort received a trust score of -77, indicating a much lower level of trust compared to the general public and SMEs. 

IBCB board member and treasurer of the Irish Farmers Association, Martin Stapleton, said: “The absence of trust amongst the farming community is an issue that needs to be addressed without delay. 

"Farmers are integral to Ireland’s heritage and economy and their perspective needs to be understood, esteemed, and supported and their needs met by banks,” he continued.

The report stated that the very low levels of trust among the farming sector "requires urgent focus by banks".

This year’s report is published against a backdrop of significant societal volatility, including an emerging cost of living crisis, ongoing uncertainty created by Brexit, a war in mainland Europe and significant change in the Irish banking market, with the impending departure of two of the five main retail banks.

The results of this year's report come as consumers face a cost of living crisis and the Irish banking sector undergoes significant changes through the exit of two of the five main retail banks. 

The main financial worries among those surveyed were having a reduced income and not being able to make some payments.

Marion Kelly, CEO, IBCB said: “This year’s éist findings, which will inform the work programme of the IBCB over the next year, are a clear illustration of the extent of the challenge in changing banking culture in Ireland. Progress is being made but the process of cultural improvement will take time. 

"The survey results point to concerns regarding the wider economy, cost of living pressures and issues around account switching due to the impending exit of Ulster Bank and KBC Bank Ireland from the Irish market. Increased concerns regarding the risk of fraud are also evident," she added.  

Speaking about the results of the report, Chairman Mr Justice John Hedigan said: ‘‘It is clear from this year’s findings that, while there is some evidence of improvement, more work remains to be done to address deeply ingrained feelings of distrust towards the banking sector amongst the Irish public. 

"A focus on customer outcomes will need to be sustained for an extended period before there is significant tangible evidence of improvement in the public’s trust in banking," he added.