58% 'would shun unethical services'

Last Modified: 24 Jul 2008
Source: PA News

More than half of people claim they would boycott a financial services firm if it was operating in an unethical manner, research shows.

About 58% of people said they would move money away from a provider whose behaviour was unethical, according to market research group GfK NOP.

But despite this, just 21% of people said a company's ethics were currently a key consideration when choosing a financial product.

Instead 26% of those questioned said they thought ethical considerations were irrelevant and 45% said there were more important things to take into account.

However, 42% of people said if they were faced with two comparable products, they would opt for the most ethical, while 15% claimed they would be prepared to accept a lower rate of return from an investment or pension fund if their money was held by an ethical provider.

Just over half of consumers said they thought ethical considerations would increasingly influence the financial products they bought during the coming two years, with only 22% claiming their decision making would not become more ethically based.

Andy Thwaites, financial insight director at GfK NOP, said: "The issue of ethics in the financial services sector is interesting - in that, unlike a jar of coffee, a car or a piece of clothing, a financial service product is an invisible ethical choice, which other people cannot easily see or appreciate.

"Add to that the fact that financial services products are often a major considered purchase - where traditionally the most important factor might have been rate or return - and we might assume that ethics are somewhat irrelevant.

"While it's apparent to some extent that this has been the case, it's also very clear that a sea change is imminent - pointing to a significant opportunity for providers to take an ethical stance to gain some advantage."

GfK NOP questioned 3,000 people online during March.

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