‘I Hate Banking — A Bit Less’

Trivia question: which do Americans dislike more, health insurance companies or the financial services industry?

The correct answer is not health insurance companies.

Since the credit crisis began in 2007, the financial services sector has displaced health insurance as arguably the most vilified sector in the nation. That’s quite a feat. Everyone take a bow — or at least bend over from the I’ve-been-kicked-in-the-gut feeling.

The evidence is in a new survey of 808 adults published yesterday by CNBC and performed by Hart/McInturff. In it, Americans make clear just how distastefully they view financial services. When asked whether they had “confidence” in the financial industry, 57% said “very little” or “none at all.” By comparison, health insurance companies scored a 49% in those two categories. What is more shocking about the numbers for financial services is that “confidence” is a close cousin to “trust” — and that is the main ingredient in successful banking.

The financial industry’s confidence scores have been sliding precipitously since December 2000. Back then Americans were more confident than not in the financial industry. That has completely reversed.

The silver lining in this — if you can call it that — is the vilification seems to have peaked. That 57% saying they lack confidence in the financial industry is down from 60% in January 2009, the highest rate since Hart/McInturff began polling Americans about their confidence in the financial industry in late 2001.

Let’s call it what it is: a horrible state of affairs for the financial industry. Consumers have little confidence in the financial industry and that’s not just a problem, it’s a huge problem.