You are here: Home - Investing -

BLOG: Trust in the dust?

0
Written by:
18/07/2012
“To be trusted is a greater compliment than being loved.” So spoke the children’s author George Macdonald.
BLOG: Trust in the dust?

Indeed, given the prominence and importance of trust in every story we hear or read from childhood to adulthood, you might assume we cherish it above all else.

Sadly in banking and the wider financial services industry this has not been the case. From recent charges of money laundering, miss-selling Payment Protection Insurance, Liborgate, to outrageous pension charges, you’d be forgiven for thinking Western capitalism was in something of a meltdown.

As a nation, we have become collectively richer over the last few hundred years so it was inevitable that the financial services industry should play an increasingly important role in our daily lives.

But with privilege comes responsibility and these breaches of trust, felt so acutely by so many, will not be easily assuaged.

There is good reason for this. Trust has played a defining role throughout human history.

From our beginnings as tree dwelling mammals, co-operation and trust have underpinned our success as a species. You cannot efficiently harvest trees that are bearing fruit at different rates, at different times, across a wide area without co-operation and trust.

In their book, the New Penguin History of the World, J.M Roberts and ODD Arne Westad, note that our development from Homo Erectus to Homo Sapiens was built upon our ability to co-operate and trust one another. Advances in communication (and much later language) enabled us to move from a predominantly vegetative diet to hunting big game.

Our ability to pool resources, experience, practice and ideas to everyone’s benefit means we value trust above anything else in our relationships.

Trust continues to play a central role in human evolution. It is true that people who are related collaborate on the basis of nepotism and that it takes immense provocation for someone to turn on a relative with whom they share a lot of genes.

But trust allows unrelated individuals to collaborate and benefit by monitoring who does what and punishing cheats.

With trust so hard wired into our being, its small wonder Financial Services is having a hard time justifying some of its behaviour. If, as some maintain, trust is like a mirror then it can be fixed but we will always see the cracks in it.

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2192540-elderly-hands
The ‘extraordinary’ scale of hidden pension charges

The majority of pension providers and managers are failing to inform savers about 'hidden charges' which typically wipe £100,000 off...

Close