The Financial Services Compensation Scheme (FSCS) has launched a £3 million consumer awareness campaign aimed at reassuring consumers about the safety of their savings.
The campaign is the second phase in a drive to boost consumer confidence, following a TV advertising campaign from January to March 2011 worth £2.5 million.
The campaign will run from 14 January to 31 March 2014 and features a mixture of print, radio and online advertising.
As a way to reassure consumers, new regulations came into play on 31 August that require banks, building societies and credit unions to display posters and stickers in branches to inform consumers that their savings are protected by the FSCS.
Research by the scheme found that 51% of 1,000 adults think they would be compensated for the loss of their money if a financial services firm collapsed and 48% said they have heard of the FSCS.
Mark Neale, FSCS chief executive, said that awareness of the scheme led to greater investor confidence meaning consumers were more likely to buy a financial product.
‘From our research, we know that consumers who are aware of FSCS are more confident and likely to buy financial products. So FSCS plays a vital role in generating the consumer confidence, which benefits firms,’ he said.
‘Our research showed a lack of understanding and knowledge about the protection that we provide. We want to reassure the majority that their money and savings are safe, and warn those who unwittingly put their money at risk.
‘We need to build awareness over time and cannot wait for the next crisis to try to engage people. By then it will be too late and queues will already be forming.’