Whenever a bank fails, it’s bad news for the entire sector. Customers get nervous and start asking questions: Can I trust my bank? What if this happens to my money? How do I know if my bank is secure? If they’re not 100% confident, they may move their money out of their bank, or to an institution that feels more secure.
Early 2023 saw some headline-grabbing bank failures around the world, from local and niche institutions like First Republic and Silicon Valley Bank to major international players like Credit Suisse. Most banks and credit unions were unaffected by these events, but many customers still feel anxiety about the financial sector.
That’s why it’s a priority for banks, credit unions, and other financial institutions to put trust at the heart of their customer relationships. In this piece, we’ll offer some advice on building confidence among commercial and retail clients. But first, let’s look at why trust matters so much.