The role of trust in financial customer–seller relationships before and after the financial crisis

Hansen, Torben

doi:10.1002/cb.1493

Cited by 28 publications

(39 citation statements)

References 80 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Hauff (2019) also finds that the higher trust in the own bank is, the lower the intention to switch to another bank. However, Hansen (2014) reports on the basis of two surveys comprising 1,155 and 757 bank customers that consumers rely more on satisfaction and less on trust after the financial crisis than before the financial crisis when determining whether they should remain loyal to a particular financial service provider. 7…”

Section: Why Is Trust Important?mentioning

confidence: 99%

“…For example, trust positively depends on the perceived sensitivity of banks towards customers' problems and effectiveness in finding answers towards these problems Hansen (2012). finds that trust in Danish pension and mortgage companies is positively associated with the degree to which customers are satisfied about the relationship they have with the financial service provider Hansen (2014). shows the importance of the perceived relationship for banks in Denmark.…”

mentioning

confidence: 94%

See 1 more Smart Citation

Trust in Financial Institutions: A Survey

2020

View full text Add to dashboard Cite

Trust in financial institutions is widely considered important. However, a clear overview of studies on the drivers of trust is missing. We intend to fill this gap in the literature. After discussing why trust in financial institutions is important, we turn to its measurement, where we distinguish between trust in one's own institution and trust in institutions in general (narrow-scope and broad-scope trust), and discuss how these measures differ from generalized trust (i.e. trust in other people with whom there is no direct relationship). Finally, we survey the determinants of trust in financial institutions and discuss a wide range of drivers. First, trust in financial institutions depends on the economic situation: it behaves procyclically and is negatively affected by financial crises. Second, the behavior of the financial institutions matters: prudent conduct, the provision of good services and financial health have a positive effect on trust. Third, although consumer characteristics also relate to trust, many of these relationships are context-dependent. Fourth, there is a positive association between narrow-scope trust on the one hand and broadscope trust and generalized trust on the other. Last, policy measures and supervisory actions can help prevent loss of trust.

show abstract

Section: Why Is Trust Important?mentioning

confidence: 99%

mentioning

confidence: 94%

Trust in Financial Institutions: A Survey

2020

View full text Add to dashboard Cite

show abstract

“…Another stream of research has focused on understanding consumer trust in their knowledge and in their ability to carry out reasonable decisions in the marketplace (e.g., Hansen and Thomsen ). However, with a few exceptions (e.g., Grayson, Johnson, and Chen ; Hansen ; Hansen ; Hansen ), consumer trust in the broader business context (i.e., BST) has received very little attention. BST can be regarded as “formal” or “informal.” Formal BST is the belief that proper impersonal structures are in place to enable one to anticipate a successful future endeavor (McKnight, Cummings, and Chervany ).…”

Section: Theoretical Framework and Research Hypothesesmentioning

confidence: 99%

“…More specifically, BST can be defined as the expectation held by the consumer that companies within a certain business type are generally dependable and can be relied on to deliver on their promises (Hansen ). Despite the well‐recognized significance of trust in consumer financial behavior, only few previous studies (i.e., Grayson, Johnson, and Chen ; Hansen, , ; Hansen ) have investigated the influence of BST on financial consumer behavior. However, while past research has considered the direct and indirect influence of BST on relationship satisfaction and trust, no research has examined whether BST may influence relationships between consumer financial knowledge, cognitive effort, and financial healthiness.…”

Section: Introductionmentioning

confidence: 99%

The moderating effects of financial broad‐scope trust on consumer knowledge, cognitive effort, and financial healthiness

Hansen

2016

J of Consumer Behaviour

Self Cite

View full text Add to dashboard Cite

Substantial research results suggest the global financial crisis has negatively affected consumers' trust in financial service providers. Notably, trust not only relates to consumer trust in individual companies but also relates to the broader business context in which consumers may plan and carry out their financial behavior. This latter form of trust can be referred to as "broad-scope" trust (BST). BST is especially important in a society context because lack of BST may reduce financial market dynamism, competition, and productivity. Consequently, financial service providers assume an important social responsibility in order to develop BST. Unfortunately, not much is known about the interplay between BST and consumer financial behavior. Based on two surveys comprising 1155 bank consumers and 756 mutual fund investors, respectively, this study investigates the moderating influence of BST on relations between knowledge, cognitive effort, and financial healthiness and also examines the direct influence of BST on cognitive effort and financial healthiness. The results indicate that BST negatively moderates relations between knowledge and financial healthiness and between cognitive effort and financial healthiness. In addition, it is demonstrated that BST negatively influences cognitive effort and positively influences financial healthiness. Our results demonstrate the importance of developing BST as it may ease the burdens put on consumers' financial knowledge and processing capabilities, which in turn may facilitate their financial well-being.

show abstract

“…Consumer risk‐taking, supplier trust, social norms and information involvement are central to much of thought in the financial market literature, and a deeper understanding of the interplay between these elements is essential for advancing research and managers' and authorities' thought and policy. Indeed, recent research (Hansen, , ; Springford et al ., ) points to the fact that the financial crisis has even elevated the interest in consumer financial trust and risk‐taking behaviour. In addition, government education programmes and financial researchers and managers have all shown an increased focus on consumer involvement in financial information (e.g.…”

Section: Introductionmentioning

confidence: 97%

How trust in financial supplier information impacts young adults' financial information involvement: The moderating roles of product savings risk and social norm

Hansen

2017

J of Consumer Behaviour

Self Cite

View full text Add to dashboard Cite

Although consumers' risk‐taking, supplier trust, social norms and information involvement are central to much of thought in the financial market and consumer economic literature, it is not known how the interplay between consumers' trust in supplier information, risk‐taking behaviour and social norm may influence information involvement. This research contributes to the consumer economic literature by investigating how product savings risk and social norm affect the relationship between young adults' trust in supplier information and their information involvement. On the basis of two samples with young adults who recently have purchased a low‐risk savings product (n = 641) and a high‐risk savings product (n = 219), respectively, several results are obtained. It is found that both product savings risk and social norm positively moderate the relationship between young adults' trust in supplier information and their information involvement. In addition, the results indicate that the three‐way interaction between trust in supplier information, products savings risk and social norm has a positive effect on information involvement. As direct implications, financial authorities and financial service managers should especially consider investing additional resources in developing information trust for high‐risk savings products and should also take social norms into account when considering young adults' high‐risk‐taking behaviour. Copyright © 2017 John Wiley & Sons, Ltd.

show abstract

The role of trust in financial customer–seller relationships before and after the financial crisis

Cited by 28 publications

References 80 publications

Trust in Financial Institutions: A Survey

Trust in Financial Institutions: A Survey

The moderating effects of financial broad‐scope trust on consumer knowledge, cognitive effort, and financial healthiness

How trust in financial supplier information impacts young adults' financial information involvement: The moderating roles of product savings risk and social norm

Contact Info

Product

Resources

About