Trust in retail banking among the public has entered positive territory for the first time since the Irish Banking Culture Board began measuring four years ago.
There was a 16-point increase among the general public and a substantial 33-point rise among SMEs.
The role of the IBCB is to be an independent voice advocating for cultural change in the Irish banking industry. It is funded by the three retail banks: AIB, Bank of Ireland and PTSB.
According to the éist report, the key drivers of trust - ability, dependability, integrity, and purpose - have all seen improvements.
In a changing marketplace, the general public and SMEs value stability and reliability. The report found that banks have made strides in securely managing finances as seen in a 15-point increase for the general public and an 18-point increase for SMEs.
Enhancements in understanding and responding to customer needs is reflected in an 11-point increase for the general public and 18-points for SMEs.
CEO of the IBCB, Marion Kelly, said: "Since our establishment in 2019, the IBCB and our member banks have focused on rebuilding trust in banking in Ireland and this survey is a key means for us to assess the impact of this work.
"Over the past four years, findings have consistently shown steady increases in trust in the Irish banking sector," Ms Kelly said. "While there is still work to do to reach the same levels of trust in banking found across many other jurisdictions, the progress to date is significant."
Speaking on Morning Ireland, Ms Kelly said retail banks are seen as "a safe place for your money".
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Banks have invested heavily in anti-fraud systems and have developed awareness training for staff through the Fraud Smart programme.
"All of that is paying a trust dividend this year," she said.
The report also found that increasing trust in banking is even more pronounced at a local level, with trust in local branches moving from 9-points in 2023 to 23-points in 2024.
By combining digital services with personalised support, traditional banks are setting themselves apart from digital-only competitors, according to the éist report, particularly among SMEs where trust continues to build.
"The key thing coming through there is the mixture around a digital offering, which is very much valued by SMEs," she said, "in conjuction with the ability to have personal face to face interaction when needed, particularly around big decisions like a long term loan for example."
Chairman of the IBCB, Mr Justice John Hedigan, said: "éist 2024 signals real progress on rebuilding trust and reflects the commitment of the sector and its staff to cultural change, but sustaining and accelerating this momentum will mean continued prioritisation of openness, responsibility, and proactive customer care."
