Trust in Financial Services

Global Report Trust in Financial Services

21st ANNUAL EDELMAN TRUST General Online Population Informed Public BAROMETER 1,150 500 respondents in U.S. and China; Methodology 100 respondents in Nigeria; respondents per country 200 in all other countries Ages Represents 17% of total global population 18+ Must meet 4 criteria: Online survey in 28 countries* All slides show general ‣ Age 25-64 33,000+ respondents online population data ‣ College-educated 2021 Edelman Trust Barometer fieldwork unless otherwise noted ‣ In top 25% of household income conducted from October 19 to November 18, 2020 per age group in each country ‣ Report significant engagement in public policy and business news *The 2021 Trust Barometer 27-market global averages (for the general population, mass population and informed Mass Population public) do not include Nigeria 27-market global data margin of error: General population +/- 0.6% All population not including (N=31,050); informed public +/- 1.3% (N=6,000); mass population +/- informed public 0.6% (N=25,050+); half-sample global general online population +/- 0.8% (N=15,525). Represents 83% of total global Country-specific data margin of error: General population +/- 2.9% population (N=1,150); informed public +/- 6.9% (N=min 200, varies by country), except for China and U.S. +/- 4.4% (N=500) and Nigeria +/- 9.8% (N=100); mass population +/- 3.0% to 3.6% (N=min 736, varies by U.S. Post-Election Supplement country), except for Nigeria +/- 2.9% (N=1,125). U.S. Post-Election Supplement margin of error: +/- 2.5% (N=1,500). 1,500 U.S. respondents, fielded December 14 to 18, 2020 U.S. Post-Election Supplement ethnicity-specific data margin of error: Non-Hispanic White +/- 3.3% (N=894); all others +/- 4.0 (N=607). 2

21 YEARS OF TRUST 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Rising Fall of the Earned Media U.S. Trust A “Person Like Business More Young People Trust in Performance Business Must Influence of Celebrity CEO More Credible Companies in Shifts from Me” Emerges Trusted Than Have More Business and Partner With NGOs Than Europe Suffer “Authorities” as Credible Government Trust in Plummets Transparency Government to Advertising Trust Discount to Peers Spokesperson and Media Business Essential to Regain Trust Trust 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Fall of Crisis of Business Trust is Growing Trust in The Battle Trust Trust: Declaring Government Leadership to Lead Essential to Inequality Crisis for Truth at Work Competence Information the Debate Innovation of Trust and Ethics Bankruptcy for Change 3

SPRING TRUST BUBBLE BURSTS; BIGGEST LOSS FOR GOVERNMENT - 0 + Distrust Neutral Trust Change, wave to wave Trust Index, 11 countries included in the 2020 Trust Barometer Spring Update (1-49) (50-59) (60-100) Global 11 Government +/- Jan 2020 to +/- May 2020 to May 2020 Jan 2021 S. Korea -17 +16 -17 UK -15 +/- May 2020 +24 -15 to Jan 2021 China 61 Government -8 +5 --1313 -8 Mexico -12 Media -6 +12 -12 -5 -6 Canada -11 +6 NGOs -6 +20 -11 -6 India +6 -8 56 Business -3 -8 -3 U.S. -6 55 +9 -6 Government was the most Germany -5 trusted institution in May, +19 -5 then lost its lead 6 months later Japan -5 --11 Saudi Arabia +5 --11 Jan 2020 May 2020 Jan 2021 France +2 +13 2 2021 Edelman Trust Barometer. The Trust Index is the average percent trust in NGOs, business, government and media. TRU_INS. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right. 9-point scale; top 4 box, trust. General population, 11-mkt avg. 4

BUSINESS BECOMES ONLY TRUSTED INSTITUTION Percent trust - 0 + Distrust Neutral Trust Change, 2020 to 2021 Business NGOs Government Media Business more trusted than government in 18 of 27 countries 61 57 53 56 +2 51 pts TRUST INDEX Change, 2020 to 2021 +2 -1 +3 +2 l 2021 Edelman Trust Barometer. The Trust Index is the average percent trust in NGOs, business, government and media. TRU_INS. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right. 9-point scale; top 4 box, trust. General population, 27-mkt avg. 5

TRUST LOSS FOR FINANCIAL SERVICES

AFTER YEARS OF RE-BUILDING, STEEP TRUST LOSS FOR FINANCIAL SERVICES SECTOR Percent trust in the financial services sector vs. trust in business - 0 + Distrust Neutral Trust Change, 2020 to 2021 Change, (1-49) (50-59) (60-100) Global 22 2020-2021 59 Business in +1 58 general 56 Countries with double-digit declines in financial services trust year-over-year 52 Financial -4 Percent trust, Change, services sector 2021 2020-2021 Colombia -15 43 -16 Argentina -13 47 33 -16 China -12 69 -12 44 Japan 40 --1111 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Edelman Trust Barometer. TRU_IND. [FINANCIAL SERVICES] Please indicate how much you trust businesses in each of the following industries to do what is right. 9-point scale; top 4 box, trust. Industries shown to half of the sample. TRU_INS. [BUSINESS] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right. 9-point scale; top 4 box, trust. General population, 22-mkt avg. 7

TRUST IN FINANCIAL SERVICES SECTOR DECLINES IN 20 OF 27 COUNTRIES Percent trust Distrust Neutral Trust - 0 + Change, 2020 to 2021 All-time low 77 75 Distrusted in 10 countries 71 71 70 69 66 63 59 59 58 55 55 55 54 52 51 50 47 43 42 41 40 38 GLOBAL 27 35 35 34 33 -5 pts 53 -3-3 0 0 -9 -12 -3 -3 -5 -7 n/a -8 -1 -5 -2 0 -5 +7 0 -16 +1 +1 -11 -7 -6 -9 -7 -16 Change, In In Ma Sa ** Ch UAE Me ** Si *N Br S. S. U. Th Ca Au UK Co It Ge Jap Ir Ru Sp Fr Ar d d u T K n i a A K S e a e a g i o l h i x e g g n s l ly r la s a nc 2020 to 2021 a a d a n i e z f o . a t o m an s i e n y a c n a i r N r m n n n i i y ri l i r d a a d i e s A la o p c e e a b a e t s i a o a t l n i a n a a he i n ia r r a i y ab d e r a a ia la n ds 2021 Edelman Trust Barometer. TRU_IND. [FINANCIAL SERVICES] Please indicate how much you trust businesses in each of the following industries to do what is right. 9-point scale; top 4 box, trust. Industries shown to half of the sample. General population, 27-mkt avg. *Nigeria not included in the global average **Thailand and Kenya only has 2-year data 8

SPRING TRUST BUBBLE BURSTS FOR FINANCIAL SERVICES SECTOR - 0 + Distrust Neutral Trust Change, wave to wave Trust in financial services, 11 countries included in the (1-49) (50-59) (60-100) 2020 Trust Barometer Spring Update Global 11, trust in financial services Countries +/- Jan 2020 to +/- May 2020 to May 2020 Jan 2021 China +11 -23 Canada +12 -17 65 Germany +15 -14 France +4 -11 +6 Mexico +6 -9 -10 59 UK +9 -9 Japan -4 -7 55 U.S. +5 -7 India +3 -6 Jan 2020 May 2020 Jan 2021 S. Korea +1 -6 Saudi Arabia +2 -2 2021 Edelman Trust Barometer. TRU_IND. [FINANCIAL SERVICES] Please indicate how much you trust businesses in each of the following industries to do what is right. 9-point scale; top 4 box, trust. Industries shown to half of the sample. General population, 11-mkt avg. 9

TRUST DECLINES ACROSS FINANCIAL SERVICES SUBSECTORS - 0 + Percent trust in the financial services subsectors Distrust Neutral Trust Change, 2020 to 2021 Global 27 58 57 57 56 54 50 42 40 n/a -3 -3 -2 -3 -5 -8 n/a Digital payments Banks Personal insurance Credit cards Property Financial advisory/ Digital wealth Cryptocurrency (life and health) and casualty asset management/ insurance management robo advisory 2021 +/- yty 2021 +/- yty 2021 +/- yty 2021 +/- yty 2021 +/- yty 2021 +/- yty 2021 +/- yty 2021 +/- yty Singapore 62 - 64 -8 68 +4 60 -1 58 -3 57 0 53 -2 45 - U.S. 49 - 64 +10 60 +6 59 +6 54 +2 52 -4 38 -8 34 - UK 39 - 53 0 44 -5 50 -3 42 -4 37 -8 24 -11 21 - Germany 42 - 44 -2 47 -1 47 -4 46 -5 38 -2 27 -7 22 - 2021 Edelman Trust Barometer. TRU_SUB_FIN. Now thinking about specific sectors within the financial services industry, please indicate how much you trust businesses in each of the following sectors to do what is right. 9-point scale; top 4 box, trust. Question asked of one-fifth of the sample. General population, 27-mkt avg. 10

FINANCIAL SERVICES SECTOR TRUST INEQUALITY AT RECORD HIGHS Percent trust in financial services Trust (60-100) Global 22 Neutral 67 (50-59) Distrust 65 65 (1-49) 61 62 12pt gap 62 Informed 12pt gap Public 6ptgap 54 54 55 54 13pt gap Trust inequality, 2021 (pts.) 53 53 51 51 U.S. 14 49 48 49 Mass UK 10 47 47 Population Germany 4 43 Singapore -1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Edelman Trust Barometer. TRU_IND. [FINANCIAL SERVICES] Please indicate how much you trust businesses in each of the following industries to do what is right. 9-point scale; top 4 box, trust. Industries shown to half of the sample. Informed public and mass population, 22-mkt avg. 11

TRUST DISCONNECT: MUCH HIGHER TRUST AMONG SECTOR INSIDERS Percentage-point difference between trust in companies in each sector among sector Distrust Neutral Trust employees vs. the general population % trust in each sector… among 72 74 72 76 71 76 80 75 71 68 73 68 70 68 65 67 sector employees * *************** 21 Trust gap 9pts 14 14 11 10 10 9 9 8 7 6 6 5 4 1 among general population 63 53 58 62 60 66 70 66 62 60 66 62 64 63 61 66 * *************** Se Fi Fa Te En He Te Ma Pr CP Ed Au Re Tr En Fo c n s l e a c o G u t t a t o t a h e r l h n f c o a n e d o n i c g t n u e a m i s r r c o o y h o f s t l p t a i n m c a s i o o a n a a a l i o i ve l m r o c o n t r n d g t n i t m s u e y u v a b r e r a e t e e a r n i l i g v i n s o n v e i c g e n t e c a r r e t v a s i i g o c e ns es 2021 Edelman Trust Barometer. TRU_IND. Please indicate how much you trust businesses in each of the following industries to do what is right. 9-point scale; top 4 box, trust. Industries shown to half of the sample. General population, 27-mkt avg., and among those employed in each sector (Q43/1 AND Q420). 12

BUILDING TRUST FOR FINANCIAL SERVICES

CEOS MUST LEAD ON SOCIETAL ISSUES SUCH AS PANDEMIC IMPACT AND JOB AUTOMATION I expect CEOs to publicly speak out FINANCIAL SERVICES about one or more of these societal challenges COMPANIES INCREASE FOCUS ON EXECUTIVE PROFILING Pandemic impact 59 98%rate executive profiling communications as important/very Job automation 51 important in 2021 86% Societal issues 43 63%will increase their focus on executive profiling communications Local community issues 40 in 2021 Source: 2021 Edelman Financial Services Communications Survey of 40 CCOs and senior communications professionals at major finance companies in the U.S., Europe, Asia and Africa, Data collected January-February 2021. 2021 Edelman Trust Barometer. CEO_SPEAK. Looking at the topics listed below, please select the ones you expect CEOs to currently be speaking out about publicly. Select all that apply. Question asked of half of the sample. General population, 27-mkt avg. CEO expectation to speak out is a net of attributes 1, 2, 5 and 7. 14

BUSINESS NOW ONLY INSTITUTION SEEN AS ETHICAL 2021 BOTH COMPETENT 35 2020 ANDETHICAL (Competence score, net ethical score) NGOs (-5, 16) Business Media (-19, -3) (14, 5) LESS COMPETENT -50 50 COMPETENT Government (-34, -10) -35 UNETHICAL 2021 Edelman Trust Barometer. The ethical scores are averages of nets based on INS_PER_DIM/1-4. Question asked of half of the sample. The competence score is a net based on TRU_3D_INS/1. Depending on the question it was either asked of the full of half the sample. General population, 24-mkt avg. Data not collected in China, Russia and Thailand. For full details 15 regarding how this data was calculated and plotted, please see the Technical Appendix.

TRUST IN ALL INFORMATION SOURCES AT RECORD LOWS Percent trust in each source for general news and information Global 22 63 63 64 65 63 65 62 62 65 Trusted (60-100) 62 59 62 62 61 59 58 59 58 56 Change 2020-2021 49 53 Search engines* -6 46 48 46 45 45 44 42 45 41 Traditional media -8 42 44 44 43 41 41 42 40 40 35 Owned media -5 Social media -5 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Edelman Trust Barometer. COM_MCL. When looking for general news and information, how much would you trust each type of source for general news and information? 9-point scale; top 4 box, trust. Question asked of half of the sample. General population, 22-mkt avg. *From 2012-2015, “Online Search Engines” were included as a media type. In 2016, this was changed to “Search Engines.” 16

BUSINESS GAINS THE MOST TRUST BY BEING A GUARDIAN OF INFORMATION QUALITY Percent increased likelihood of trusting business associated with performing well on each action FINANCIAL SERVICES COMPANIES INCREASE When these actions are performed well… Increased likelihood of trust FOCUS ON ESG COMMUNICATIONS Guarding information quality +5.8% 98%rate ESG-focused Opportunity for communications as important/very Embracing sustainable practices +5.7% financial services important in 2021 sector to take the 83%will increase their focus on Robust COVID-19 health and safety response +4.8% lead on sustainability, ESG communications in 2021 Driving economic prosperity +4.7% economic prosperity and Source: 2021 Edelman Financial Services Long-term thinking over short-term profits long-term thinking Communications Survey of 40 CCOs and senior +4.6% communications professionals at major finance companies in the U.S., Europe, Asia and Africa, Data collected January-February 2021. 2021 Edelman Trust Barometer. Discrete choice analysis; results shown are marginal effects on likelihood to trust. PER_BUS. How well do you feel business is currently doing each of the following? 5-point scale; top 2 box, doing well. Question asked of half of the sample. TRU_INS. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right. 9-point scale; top 4 box, trust. General population, 27-mkt avg. For a full explanation of how this data was calculated, please see the Technical Appendix. 17

EMPLOYER MEDIA MOST BELIEVABLE Percent who believe information from each source automatically, or after seeing it twice or less Communications from… My employer National Media reports, Major Media reports, Advertising My social media government named source corporations anonymous source 61 58 57 Nr. of times they need to see 52 48 the information repeated 46 before believing it: 39 Once or twice 49 45 47 If I see it here, I will 44 40 39 automatically assume it is true 33 12 13 10 8 8 7 6 I will never believe it is true 7 12 10 15 17 19 24 if this is the only place I see it 2021 Edelman Trust Barometer. HEAR_TIME1. When you see a new piece of information or a news story in each of the following information sources, how many times do you need to see it or hear it repeated in that same type of information source before you believe it is really true? Question asked of half of the sample. “Once or twice” is a sum of codes 2 and 3. General population, 27-mkt avg. “Employer communications” only shown to those that are an employee (Q43/1). 18

TRUST IS LOCAL: MY EMPLOYER A MAINSTAY OF TRUST - 0 + Percent trust in my employer Distrust Neutral Trust Change, 2020 to 2021 Global 27 Trust in my employer stable or rising in 18 of 27 countries 92 89 86 85 83 83 82 79 79 79 78 77 76 76 76 76 75 74 73 72 72 71 70 70 69 66 76% 60 58 76 My employer My employer more trusted than institutions Business 61 0 -1 +2 +1 +7 +2 0 -1 +5 0 +3 +4 +1 +1 +4 0 -3 -12 0 0 -2 -6 +4 n/a -1 +3 -4 -1 NGOs 57 l l ll ll l ll In In Me The Ma Tha Co B Ke Sa Au Ar Ca Ge It S. UAE Ch Si Ir U. UK Fr *N Sp Ru Ja S. d d ra g a n e S a i p l n u s n r l A i la a s K o ia x la i o zi d e m y n g . nc g i an n i N l y t a f n e n s o Government 53 c y a m l a i ra n d a r a a r i r e o e s i p d e a nd b A t a c i e s t i l i n o a ia he a ia r ia n y a r a rl ab a e a i Media 51 nds a 2021 Edelman Trust Barometer. TRU_INS. [Your employer] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right. 9-point scale; top 4 box, trust. General population, 27-mkt avg. Question asked among those who are employed (Q43/1). *Nigeria not included in the global average 19

MY EMPLOYER TRUST HIGHEST AMONG FINANCIAL SERVICES SECTOR EMPLOYEES Percent trust in my employer, among sector employees - 0 + Distrust Neutral Trust Change, 2020 to 2021 Among those employed in each of the following sectors.. All employees, global 27 83 83 81 79 78 78 76 76 76 75 75 74 71 70 68 0 76 pts TRUST Change, 2020 to 2021 +1 +1 -1 +1 0 +3 +7 +2 -1 -2 0 -5 -6 -4 -7 Fi Te En Te Pr Re Fo He Ma Ed En CP Au Fa Tr n c e l o t od a n u t G t s a a hn r e f a l c e o hi ns n g c e i t u r m c y om s l a h f a t o po ia ol s nd c ac ti ai o n ogy io a o n t r l m r t n i n e u m v t s uni b r e a e a e in e ti r l v n on v c s e g t i e c a r r e ti v a s on ices ge 2021 Edelman Trust Barometer. TRU_INS. [YOUR EMPLOYER] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right. 9-point scale; top 4 box, trust. “My employer” shown to those that are an employee (Q43/1). General population, 27-mkt avg., and among those employed in each sector (Q43/1 AND Q420). 20

FINANCIAL SERVICES EMPLOYEES MORE FEARFUL OF JOB LOSS Percent who agree among employees I worry that the pandemic will accelerate the rate I am very concerned about losing, or having lost my at which companies move to replace human job, due to the pandemic and not finding a workers with AI and robots new one for a very long time All employees, Financial services All employees, Financial services global 27 employees global 27 employees Vs. 70% Vs. 63% 58% 53% 2021 Edelman Trust Barometer. SOC_AGR. Please indicate how much you agree or disagree with the following statements. 9-point scale; top 4 box, agree. Question asked of half of the sample. General population, 27-mkt avg., among all employees (Q43/1) and financial services employees (Q43/1 AND Q420/7). 21

EMPLOYER RESILIENCE MATTERS MORE Net change TO FINANCIAL Change in importance as an employer attribute All Financial More Less SERVICES SECTOR since the start of the year… employees services important important EMPLOYEES employees Keep workers, customers safe +49 +51 63 12 Change in importance since last year (more important minus less important) among financial services employees Organization is well-managed +42 +49 60 11 and weathers crises better than others Job skills training programs +44 +48 60 12 Option to work remotely, +42 +47 60 13 2021 Edelman Trust Barometer. EMP_IMP_VAL. When considering even when the pandemic is over an organization as a potential place of employment, please indicate whether each of the following has become more important to you, less important to you, or has stayed the same in importance since last year. 5-point scale; top 2 box; more important; bottom 2 box, less important. Question asked of those who are an employee (Q43/1). General population, 27-mkt avg., and among financial services employees (Q43/1 AND Q420/7). Net change is the difference between more and less important. 22

FINANCIAL SERVICES EMPLOYEES MOST LIKELY TO SPEAK OUT AND PROTEST AT WORK Percent who agree, among sector employees I am more likely now than a year ago to voice my objections to management or engage in workplace protest if I were to strongly disagree with an action the organization has taken or a policy they have implemented All employees, 62 59 global 27 54 53 53 53 52 51 50 50 50 50% 47 47 47 45 Fin Te Ma Fa Pr Te En Fo CP Re Tra Ed En He Au a c n sh o le e o G t n u te a t h f r d a c l o n n u i e c g i s a r t m o o l h c o f s y a p t t i a n s m n o i a c o a l c i o i a l o t o m d r n t s g u n t n m re i e y a s b a v r r l e t e e i v i v n s o n ic g e e n t e r ra s vi g ces e 2021 Edelman Trust Barometer. EMP_ENG. Thinking about your current employer, to what extent do you agree with the following statements? 9-point scale; top 4 box, agree. Question asked of those who are an employee (Q43/1). General population, 27-mkt avg., and among those employed in each sector (Q43/1 AND Q420). 23

FINANCIAL SERVICES: BUILDING TRUST IN AN AGE OF INFORMATION BANKRUPTCY 1 2 3 4 Embracebusiness’ Provide Use data to cut Lean into your expanded mandate trustworthy content through the noise engaged workforce CEOs must lead on issues Financial services firms can Leadership in sustainability, from sustainability and long termism and economic Financial services employees systemic racism to upskilling. help fill the trust vacuum by prosperity creates a “trust invest great trust in their Act first, talk after. providing truthful, unbiased, premium”. All are themes company and sector, but reliable information about the where financial services harbor profound anxieties. issues that matter. companies should excel but Addressing these will position are increasingly crowded. Data you to attract the best talent. and a unique POV are key. 24