Trust in financial services: the influence of demographics and dispositional characteristics

Abstract

So far very little attention has been paid to examining consumer perceptions of trust from an interdisciplinary perspective. The purpose of this study is to examine how consumer trusting belief and disposition to trust within the financial services sector vary on the basis of individual demographic differences in trust. The research provides new insights into how consumers with higher dispositional trust have higher institutional trust and higher trusting belief; and how consumers' trusting belief significantly differs according to their demographic background in terms of age, marital status, ethnicity and gross annual income. The findings offer useful insights for the managers in financial institutions to carefully consider the impact of the influence of these individual differences on consumer behaviour in order to serve the needs of consumers in their target market and be able to design financial products and develop trust building strategies to attract and retain them. They also call for the action of the regulators and the financial institutions to play their part in building strong institutional systems that contribute to engendering higher levels of consumer trust.

The Mediating Role of Institutional Trust on Corporate Image and Customer Trust in Iraqi Banking Sector

“…This study explored the association between corporate image, customer trust in Iraqi banking sector with the mediating impact of institutional trust. A five-point Likert scale questionnaire is utilized to collect data from 410 banking customers for the banks work in Iraq and questionnaire is adapted from the studies of Alvin (2017), Bruggen (2014), and Moin et al (2017).The current paper utilized same methodology of Hair et al (2017). For checking the hypothesis the technique of partial least quadratic structural equation (PLS-SEM) is utilized.…”

“…Both the relational and calculus-based trust are developed from the institutional based trust. In contrast to earlier classification, Moin et al (2017) categorised trust into three classes such as interpersonal, dispositional, and institutional trust. Ennew et al (2011) claimed that financial service providers should consider five key characteristics which include shared values, competencies and expertise, consistency and integrity, communication, and concern and benevolence to increase customer's trust in their services.…”

“…In order to keep pace with international competition and to increase reach, Iraqi banks also adopted an internet banking system, however, according to the International Monetary Fund (2019) report, Iraqi banking sector fails to attract new customers and to build trust in banking services due to poor infrastructure, shaky corporate image, and institutional setting (IMF, 2019). Despite numerous social and economic benefits of the financial sector, banking services usability among Iraqis is very low (see Jadah, Murugiah, & Adzis, 2016) and Moin, Devlin and McKechnie (2017) claimed that poor trust in the financial services is one of the significant reasons for lower online-banking penetration. Therefore, the key objective of the current paper is to explore the association between firm image and trust in online-banking services with the mediating role of institutional trust.…”

Dealing with Royal Commission into Australian Banks: Emerging Research Agenda and Managerial Implications.

“…Roy & Shekhar (2010)'s study on the dimensional hierarchy of trustworthiness of financial service providers and Anneli Järvinen (2014) study on consumer trust in banking relationships in Europe will be relevant in this context. Also, the influence of demographics and dispositional characteristics such as age, marital status, ethnicity and gross annual income in the industry should also be considered as an influence on trust in financial services (Moin, et al, 2017).…”

“…This agenda highlights the need for a holistic analysis of the customer base as this will help the brand develop the right strategy to target these issues. It is also important to consider the impact of the influence of customers individual differences such as age, gender and income level as this can shape how they will be targeted and influence their choice of financial products (Moin, et al, 2017).…”