Roy Morgan CEO Michele Levine says the banking sector in Australia is now the most distrusted in the country.
“More distrusted than mining. More distrusted than gambling, and more distrusted than even the media. Australia is looking at a contagious disease of distrust at the moment, she says”
Ms Levine was interviewed by Bloomberg TV in the wake of the resignation of Westpac CEO Brian Hartzer and Westpac Chairman Lindsay Maxsted following revelations about a Westpac money laundering scandal.
Roy Morgan is probably Australia’s best-known market research company )
She pointed out the importance of trust, and critically distrust, to the success of any business as covered extensively in the Roy Morgan Risk Report.
“Westpac came through the Banking Royal Commission better than their ‘Big Four’ peers; however, today more than 60% of Australians distrust Westpac.
“Everyone knows the difference between right and wrong so anybody actually wanting to rebuild trust has to first focus on understanding distrust.
“Distrust needs to be put on the risk register of the board so that it is continually front of mind,” said Ms. Levine, highlighting the huge impact a scandal can have in a short amount of time.
. Simply removing the top one or two people is necessary for a recovery, but not in itself sufficient, she says.