Public trust in retail banking enters positive territory for first time since 2021, with strong increase in public trust among general population and significant increase among SMEs

The Irish Banking Culture Board (IBCB), established to facilitate cultural change in banking in Ireland, has today published the 2024 éist report, marking its fourth annual survey of public trust in banking. 

The éist report, based on the Edelman Trust research model, shows trust in retail banking among the Irish public entering positive territory for the first time since IBCB began measuring in 2021. The findings reflect a renewed sense of trust in banks generally and the highest trust levels recorded to date: a 16-point increase among the general public and a substantial 33-point rise among SMEs. 

Speaking about the 2024 éist findings, CEO of the IBCB, Marion Kelly, said: “Since our establishment in 2019, the IBCB and our member banks have focused on rebuilding trust in banking in Ireland and this survey is a key means for us to assess the impact of this work. Over the past four years, findings have consistently shown steady increases in trust in the Irish banking sector. While there is still work to do to reach the same levels of trust in banking found across many other jurisdictions, the progress to date is significant.”

Marion Kelly continued: “According to the éist report, the key drivers of trust – being ability, dependability, integrity, and purpose — have all seen improvements. In a changing marketplace, general public and SMEs value stability and reliability. Banks have made strides in securely managing finances as seen in a 15-point increase for general public and an 18-point increase for SMEs. Furthermore, enhancements in understanding and responding to customer needs is reflected in an 11-point increase for the general public and 18-points for SMEs.”

éist 2024 Key Findings: 

• Traditional retail banks continue to play an important role in society, providing protection and support for financing key life events, and are perceived as safer and more secure, offering personalised services compared to that of digital-only banks. 
• Increasing trust in banking is even more pronounced at a local level, with trust in local branches moving from 9-points in 2023 to 23-points in 2024. 
• The perception of the IBCB member bank’s impact on society and communities is improving, with 60% of the general population and 70% of SMEs acknowledging that their bank supports societal causes. Both groups also noted that traditional banks are better at societal and community engagement compared to digital-only banks.
• By combining digital services with personalised support, traditional banks are setting themselves apart from digital-only competitors, particularly among SMEs where trust continues to build. While this positive outlook on trust is encouraging, there is still work to be done. Challenges persist, particularly with Gen Z’s preference for fintech options, highlighting a generational gap in banking preferences.
• One area where worries have increased is financial security and fraud concerns within banking, which have increased (+ 5 points) to 49%. This is an area where banks and the government are aligned and are focussing on, such as via the launch of the National Payments Strategy for Ireland in October 2024. This strategy considers issues including the continuing role of cash in society, payment fraud, and the future of payments.
• As inflation stabilises and employment grows, IBCB’s latest éist survey revealed cautious optimism for 2024-2025. When surveyed in August of this year, the general public and SMEs felt more optimistic about the coming year, with optimism up by +13 and +14 points respectively. However, this sentiment is subject to change as Ireland’s economy is impacted by geopolitical shifts. 
• When asked about worries regarding their family’s financial situation, the general cost of living remains the top concern, with the data unchanged from last year. While concerns about rising energy prices and inflation have eased somewhat, they remain high at 79% and 74%, respectively. 

Since its inception, the IBCB has highlighted that there is no fast fix to reverse an embedded negative perception of banks in Ireland. However, the éist report demonstrates that progress is being made; cultural reform is underway, trust levels are improving, and public acknowledgement of that will be based on the lived experience of people’s direct dealings with the sector. 

Chairman of the IBCB, Mr Justice John Hedigan, said: “éist 2024 signals real progress on rebuilding trust and reflects the commitment of the sector and its staff to cultural change, but sustaining and accelerating this momentum will mean continued prioritisation of openness, responsibility, and proactive customer care.”

The findings in the éist report provide the IBCB with invaluable insight into the perception of retail banks in Ireland and inform how the Board will proceed in pursuit of cultural reform in the sector. The IBCB continues to assess public sentiment on an ongoing basis and to act on these perspectives.