Perceptions have a strong influence in the financial sector
T-Media’s Reputation&Trust, which focuses on companies in the financial sector, revealed that the reputation of financial organizations is closely linked to the level of support they receive from the Finnish public. The most reputable organization in the survey is S-Bank.
The survey, conducted at the turn of the year, was carried out among the general public, and the companies surveyed were organizations in the financial sector. A total of 26 financial sector organizations were surveyed in this round. The organizations surveyed included banks, pension funds, and insurance companies, among others.
The study reveals that the financial sector’s reputation has a significant impact on the support shown by Finnish organizations in the sector. The correlation coefficient between the financial sector’s reputation and stakeholder support is 0.78. Stakeholder support refers to the average level of trust Finns have in a company, their willingness to support the company during a crisis, recommend it, invest in it, use its products or services, and work for it.
“Reputation plays a key role in shaping the business environment for financial sector players. People prefer reputable companies, whether as customers or job seekers. However, there are also factors within the industry that mitigate the impact of reputation on business, though they do not eliminate it. For example, for an individual, switching banks is more likely to occur at major life transitions—such as buying or moving to a new home, getting married, or getting divorced—than at other points in life. In the midst of everyday life, switching banks involves a higher barrier to entry and a longer time horizon than, for example, switching individual consumer products. “A good reputation helps you gain market share, provided that your offering and service are up to par—it’s just that the impact lasts longer in the banking sector than in other industries,” explainsRiku Ruokolahti, Development Director at T-Media.
“On the other hand, a good reputation and the trust it inspires are critical indicators for the sustainability of the Finnish pension system and the insurance industry, for example,” Ruokolahti continues.
A good reputation is critical for organizations in the financial sector
A survey of the financial sector revealed that the reputation of organizations in the sector is, on average, at a moderate level—close to a good level. Financial sector organizations received the highest ratings in the areas of finance and management.
Employer reputation is another dimension that received a nearly high rating. Organizations received their lowest ratings in the area of interaction.
“The reputation of financial sector players in relation to one another is interesting in that none of the organizations studied turned out to have a bad reputation. The situation has evened out in this regard over the past few years,” Ruokolahti says.
S-Bank has the strongest reputation in the financial sector
S-Bank is the most reputable organization among the financial sector players surveyed in this round of research. S-Bank’s reputation score is 3.80 on a scale of 1 to 5. S-Bank received the highest ratings in the areas of finance, products and services, and employment practices, with the score in each of these areas exceeding the overall reputation score.
S-Bank's reputation was first assessed in 2016, when it received a score of 3.52.
“In Finland, reputation is earned through actions. That is why I am particularly proud of and grateful for these results. I promise that we will continue to work hard to earn your trust in the future as well,” says Pekka Ylihurula, CEO of S-Bank.
This is how we conducted the study
Financial Sector Reputation&Trust The goal of the 2021 survey was to assess the reputation of financial sector organizations operating in Finland and the sector in general among the Finnish public.
A total of 4,938 Finns participated in the survey, providing a total of 6,351 organizational ratings between December 9, 2021, and January 4, 2022. The sample has been weighted to be representative of the general population by gender, age, and region of residence. The statistical margin of error for the entire data set is at most approximately 1.39 percentage points in either direction.
For more information:
Riku Ruokolahti, Director of Development, T-Media
Tel. +358 400 512 200
Sari Maunula, Research Director, T-Media
Tel. +358 50 409 1543
