2021
DOI: 10.1111/joca.12363
|View full text |Cite
|
Sign up to set email alerts
|

Financial knowledge and trust in financial institutions

Abstract: Based on analysis of 14 years of data on Dutch consumers' trust in financial institutions, we find that financially literate consumers are more likely to trust banks, insurance companies and pension funds. This result applies both to broad‐scope trust (trust in financial institutions in general) and narrow‐scope trust (trust in one's own financial institution). Our conclusion holds when we use a financial literacy proxy based on self‐assessed knowledge or a proxy based on actual knowledge. For all types of fin… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1
1
1

Citation Types

0
16
0

Year Published

2021
2021
2024
2024

Publication Types

Select...
7
1

Relationship

1
7

Authors

Journals

citations
Cited by 45 publications
(16 citation statements)
references
References 47 publications
0
16
0
Order By: Relevance
“…For instance, Van der Cruijsen et al. (2021) pose the following questions: “In general, do you trust that banks in the Netherlands are able to repay deposits at all times?” and “At the moment, do you trust that the bank(s) at which you have deposits is (are) able to repay these deposits at all times?” (1 = no, not at all, 2 = no, predominantly not, 3 = neutral, 4 = yes, predominantly, 5 = yes, completely). Van der Cruijsen et al.…”
Section: How To Measure Trust?mentioning
confidence: 99%
See 1 more Smart Citation
“…For instance, Van der Cruijsen et al. (2021) pose the following questions: “In general, do you trust that banks in the Netherlands are able to repay deposits at all times?” and “At the moment, do you trust that the bank(s) at which you have deposits is (are) able to repay these deposits at all times?” (1 = no, not at all, 2 = no, predominantly not, 3 = neutral, 4 = yes, predominantly, 5 = yes, completely). Van der Cruijsen et al.…”
Section: How To Measure Trust?mentioning
confidence: 99%
“…Another example is Van der Cruijsen et al. (2021) who measure both trust in the financial sector managers’ integrity and trust in managers’ competence.…”
Section: How To Measure Trust?mentioning
confidence: 99%
“…Concerning trust, if an individual has a low level of trust, the individual will choose to be less involved in the activity in question. Meanwhile, with high trust, individuals will tend to stay in these activities/institutions/products (Cruijsen et al, 2021) Customer Digital Protection Moor (1997), in his theory of Restricted Access/limited Control (RALC), states the importance of implementing strict controls in establishing privacy to limit others from accessing one's personal information. According to Bongomin & Ntayi (2020b), implementing RALC is the right place to implement online privacy policies to address various privacy issues concerning digital transactions.…”
Section: Trustmentioning
confidence: 99%
“…This study demonstrates that the antecedents of intangible value binding are customers' trust in financial services, including trust in banks and financial consultants. Trust is particularly important in financial services (Fungáčová et al ., 2019; van van Der Cruijsen et al ., 2021). Clients trust in the institution (bank) or the individual (financial advisors) to fulfill their promises and to act according to the agreed promises, procedures and outcomes (Järvinen, 2014; van Esterik-Plasmeijer and Van Raaij, 2017; Fungáčová et al ., 2019).…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…Trust increases in the banking sector as feelings of confidence and security on the part of customers increase that they can have some assurance that the company will look after them (Kumra and Mittal, 2004;J€ arvinen, 2014). Bank institution trust is defined as: the consumer's trust in the bank is based on the consumer's experience and the bank's ability to behave reliably, follow rules and regulations, work well and serve the general interest (Shim et al, 2013;van Der Cruijsen et al, 2021). The consumer trusts in an organization or institution (bank) to keep its promises and to act according to the agreed promises, procedures and outcomes (J€ arvinen, 2014;van Esterik-Plasmeijer and Van Raaij, 2017;Fung a cov a et al, 2019).…”
Section: Bank Institution Trustmentioning
confidence: 99%