Concerns among consumers of Financial Services in Northern Ireland

Consumers of financial services in Northern Ireland have a number of key concerns, as highlighted in a recent survey conducted by MORI Ireland.

The survey, commissioned by the Financial Services Consumer Panel (FSCP), aimed to understand how consumers interact with financial service organisations; to identify consumers' main concerns, and to evaluate what they expect consumer representatives to do on their behalf.

The key findings from the research were:

• Consumers generally lack confidence in dealing with financial matters. This, combined with their wish to have the 'least hassle' solution, often means that they rely on financial service providers to make decisions for them without shopping around, especially for minor financial decisions.
• Most consumers feel confused by the language used by financial service organisations is specifically designed to intimidate or cause confusion, while costs and charges are high and often not adequately explained.
• In general, consumers do not feel they get enough of the 'right type' of information and advice, and that the information they do receive is confusing -- generally clouded in too much 'blurb' or too long-winded. To improve, consumers feel that financial organisations could be more open and up front and should use simpler, clearer language and condense information into more manageable "chunks" where possible.
• Of all the financial institutions, consumers trust banks and building societies most, primarily because they are well established and have built up a reputation over time. Consumers trust loan and credit card companies least because the perception is that these organisations tend to take advantage of and target the more vulnerable members of society. They are seen by many as pariahs or "sharks".
• Consumers strongly believe that financial services' regulation is necessary. They feel that financial service organisations do need to be monitored and "kept in check". Furthermore, they are of the view that the regulatory body should have real (rather than perceived) power and should be allowed to impose strict, punitive sanctions on those firms or organisations behaving outside the regulations. If the body does not have this power or its hands are tied, then its effectiveness and usefulness is perceived to be minimal.
• When specifically asked, very few respondents were aware of (or could name) the regulator, even when prompted about the FSA and the Consumer Panel.
• It should be appreciated that respondents did not understand that the Consumer Panel was an advisory body only. Consumers want and expect financial service consumer representatives to tell them more about their services, and about what they can do to help consumers. At the moment, consumers do not feel well informed. Some thoughts on how the Consumer Panel could improve were that it could be advertised more widely; it should be more proactive than reactive; it should be more local and reflect the needs and wants of the local community rather than seen as operating from afar; it should also ensure that information is simplified and in layman's terms where possible; and it should be fast and effective in its responses.

Technical details:

MORI Ireland conducted six groups at three locations throughout Northern Ireland. Groups were convened along a range of gender, age, and social class criteria. All groups were conducted in the week commencing 27th January 2003.

Note:

The Financial Services Consumer Panel was established by the Financial Services Authority (FSA), under the Financial Services and Markets Act (2000), to represent the interests of consumers. The Panel is independent of the FSA and can speak out publicly on issues where it considers this appropriate.