A rise in public trust towards Irish retail banks noted but total trust still remains negative – Irish Banking Culture Board (IBCB) 2023 “éist” report

Chief amongst the IBCB’s findings was a rise in public trust towards retail banks. However, the IBCB also found that customers differed in their attitudes towards their local branches, individual Irish retail banks and the sector as a whole. Local branches and individual banks engendered higher trust than the banking sector as a whole.

The Irish Banking Culture Board (IBCB) has released its 2023 éist report reflecting public sentiment towards Irish retail banks. During the period under review, the IBCB noted a rise in public trust towards retail banks. This rise of 10 points when compared to 2022 was positive, however total trust remains negative at -15 points.

It further found that customers differed in their attitudes towards their local branches, individual Irish retail banks and the sector as a whole. Local branches and individual banks engendered higher trust than the banking sector as a whole.

Speaking on the results of the report Marion Kelly, CEO of the IBCB, stated, “Gradual progress is being made. The challenge is to accelerate the pace of that progress,” This reflects the general findings of the report that note that, while the increase in trust is a positive sign overall, public trust in retail banks still remains low.

The rise in public trust is driven by a greater awareness of retail banks’ attempts to provide a positive impact on society and the environment through measures such as green lending and local community projects. There is also an increase in trust of retail banks’ capabilities in handling their base operations including protection against financial crime and fraud.

These findings coincide with remarks made by Colm Kincaid, the Central Bank’s Director of Consumer Protection, on the need for the Irish Retail banking sector to ensure that they are providing efficient payment and banking services to the Irish public alongside protecting them from financial crimes such as fraudulent transactions and scamming attempts.

The report notes that significant events such as the exiting of KBC and Ulster Bank from the market, and the associated branch closures and disruptions, have been the major driver of lower trust in the retail-banking sector as a whole.

In addition, the report notes (as a general trend over the past number of years) that the proximity of local branches impacts positively on public trust.

The key findings of the Éist report are:

Drivers of trust growth:

• Positive public perception of banking purpose and social and environmental activities;
• Expectations of banks to be a positive influence on the wider economy;
• Increase in trust in local branches and institutions.
• Increased belief in bank ability and competence in dealing with customers and handling their money.

Factors holding back growth:

• Exit of KBC and Ulster Bank leading to disruptions and annoyance which lower the overall trust in the sector.
• Following from this there was some dissatisfaction expressed with the switching process from the exiting banks. This was a minor driver but still reflects how Irish retail banks retain a need to ensure processes are as efficient as possible to help regain public trust.

Separately, the IBCB undertook a survey of bank staff earlier this year (the éist Staff Culture Survey), the results of which will be published in the coming months. The IBCB has indicated that bank staff across all levels and roles believe that internal bank culture continues to improve. Bank staff wish to work in an industry they can be proud of, recognising the importance of consistently delivering fair customer outcomes,

The Individual Accountability Framework (IAF) is intended to further promote positive cultural and behavioural outcomes across the financial services sector, by clarifying governance arrangements, structures of accountability, statutory duties of responsibility and expected business and conduct standards for regulated firms and their senior role-holders.

Further information on the IAF is available here: Individual Accountability Framework Insights

Next steps and how we can help:

If you would like to read the full report produced by the IBCB it can be found here.

For Colm Kincaid’s address to the Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach, it may be accessed here.

For those with questions on how these trends may impact their business, Grant Thornton can support you in assessing and considering the relevance of the IBCB éist findings from a strategic and conduct risk perspective.  

Our market-leading team of regulatory and conduct professionals are here to help with your firm’s practical needs, whether to support conduct strategy development, cultural and behavioural assessments, to undertake  consumer protection assurance reviews or support large-scale regulatory implementation programs, we are here to help.