Trust: one of the most important assets possessed by established financial services firms
Building a trusted brand is often a hurdle in the way of most start-ups without a long history or track record to point at, which confers a significant advantage to industry players who have already established it. That trust, however, is an asset that must be invested in and protected. As the world evolves, trust can be damaged in obvious ways as has been demonstrated by various examples of undisclosed conflicts of interest or cybersecurity breaches that pop-up in the financial media from time-to-time. It can also be damaged in less obvious ways over longer periods: prolonged sub-par performance, charging fees higher than perceived value and failure to keep up with technological innovation can also damage once reputable brands. As trust becomes a more recognized and important asset for distributors and asset managers alike, more resources and strategic choices will revolve around maintaining that trust. How are you tackling the trust challenge? Something to think about for all stewards of financial wealth.