Trust is at the heart of all financial interactions. It is necessary at the system level as well as between clients and advisers. In the 2022 CFA Institute Investor Trust Study, the fifth in our biennial series, we find investor trust has increased since 2020 across industries and within financial services. Read on to learn how retail and institutional investors are interacting with the factors affecting trust today.
There are meaningful differences in how retail investors and institutional investors view the financial services industry and its effectiveness. In this section, we explore everything from how investors view the trustworthiness of financial advisers to factors that can break that trust.
Most retail investors say that within the next three years, access to the latest technology will be more important than access to a person. We’ll also examine why both retail and institutional investors say that technology has led to increased trust in their adviser.
The importance of understanding clients on a personal level, and providing them with products that align with their values and beliefs, cannot be understated. Here, we look at the rise in ESG investing and the growing phenomenon of favoring a trusted brand over an adviser or asset manager.