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Financial services firms do not care about value for money, consumers say

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Consumers do not believe that financial services company chief executives and directors care about the value for money they deliver, new research suggests.

In a survey of 2,000 UK adults, just 2 per cent said they though senior management at financial services companies cared “to a great extent” about delivering value for money.

36 per cent thought they cared  “to a poor extent.”

Investment firms fared slightly better than banks, but 63 per cent still thought they cared to a little or poor extent about value for money.

That figure was 70 per cent for insurers, the 3R Insights survey says.

Value for money is one of the key theme’s in the FCA’s ongoing review of the asset management sector.

Attitudes towards quality of customer service were also criticised by consumers in the survey, more than half of whom thought financial services bosses only cared about service to a little or poor extent.

The 3R report adds: “We gave respondents free rein to offer personal views on which aspects of their experience of financial services they liked most. By far the biggest response was a single word: ‘Nothing’.

“When it came to what consumers like least about their experience as customers of financial services companies they were extremely forthcoming.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. This just shows how little the general public actually appreciate about how we work and what unlimited and never ending liabilities we face !
    As a business proprietor admittedly within a network, I care a lot about customer service and provide the best possible service to my clients whenever possible.The problem is however that this is restricted by the need to actually make a realistic profit in business while having to meet ever increasing regulatory running costs and draconian guidance and unfair retribution from consumer biased ombudsman decisions which result in increased time and resources having to be spent just to cover our backs, with the lack of a long stop hanging over our heads until the grave ! Are we expected to maintain professional standards,put our necks on the line and take on this risk on for a pittance putting our future well-being under threat just to pacify the whingers who complain we charge too much – not likely ! I would rather pack up and call it a day than be forced into having to work under such circumstances – I value the service I provide because ” I’m worth it”.

  2. As with most surveys, the responses from participants can usually be steered by the questions asked and the way in which they’re framed. If, for example, consumers have no real idea of the overheads of running a financial advisory practice or of all the work that goes on behind the scenes, and consider that they should be charged for nothing more than face to face time and the odd letter, it’s quite likely that they’ll consider themselves to be paying too much and express this opinion to the researcher. So the outcome of the survey is as its designers intended. Job done.

    I have read several accounts on this and other forums from advisers who’ve taken a few of their clients through an itemised breakdown of their normal business overheads, regulatory levies, time out on activities for which no direct charges can be levied and the implications of the FSA’s unilateral removal of any longstop and the usual reaction from their clients are gasps of incredulity ~ how do you keep your head above water? Public sector people are the worst because they themselves never have to pay for anything. It all comes from the public purse.

    The proof of the pudding, as they say, is in the eating and, in our business, what this means is how low your client turnover is and how many new clients you pick up from referrals. Value is rarely if ever represented by what is cheapest. Value means quality (and service) at a reasonable price.

  3. Did anybody actually ask the respondents what they wanted from a Financial Services Company and whether they received it? Did they filter the replies by size of FS Company? Waste of ink if you ask me!

  4. Of course they don’t, and who can blame them

    The cost of advice (sorry professionalism, as RP would have you believe) is too much by half, regulation/FCA cost is to much by half, the consumer again is made to pay for other peoples mistakes via levies made to us by the FSCS, the cost compliance/being compliant is too much by half

    To bloody right its not value for money if I delivered value for money I would be out of business in 6 months.

    As for the question on who cares, of course they don’t care….. I care, because its my business and livelihood, but if I was a CEO of a big company or senior management……. probably not, they may say they do but in reality, sorry but no

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