All financial firms – whether they are banks, investment managers, insurance companies, or securities brokers – are alike to the extent that they make a promise to the customer. Similarly, customers have to believe that the people working in the industry are placing their interests first.
If they doubt that the firm or its employees are truly interested in making the customer’s money grow, rather than claiming as much of it as possible in the form of fees and bonuses, they will be reluctant to deal with financial firms. These are just two examples of the way in which consumers’ trust in financial firms can break down.