Fear and trust in financial institutions
A content analysis
DOI:
https://doi.org/10.61190/fsr.v31i2/3.3541Keywords:
Trust, Knowledge, Financial institutions, Fear, BanksAbstract
Financial institutions are pillars of the economy and play an important role in consumers’ daily lives. As such, trust between financial institutions and the consumers they serve is of paramount impor- tance. Using an online survey administered during the COVID-19 pandemic, this paper uses a qualitative content analysis methodology to explore consumer fear and trust in financial institutions. Stemming from fear of loss, three themes emerged: (1) history and experience, (2) perceived unfair practices/lack of knowledge of banking, and (3) general trust issues. Implications for financial institu- tions are presented based on these results.
Downloads
References
Albarq, A., & Alsughayir, A. (2013). Examining theory of reasoned action in internet banking using SEM among Saudi consumers. International Journal of Marketing Practices, 1, 16-30.
Alqasa, K. M., Mohd Isa, F., Othman, S. N., & Zolait, A. H. S. (2014). The impact of students' attitude and subjective norm on the behavioural intention to use services of banking system. International Journal of Business Information Systems, 15(4), 105-122. https://doi.org/10.1504/IJBIS.2014.057967 DOI: https://doi.org/10.1504/IJBIS.2014.057967
Balaji, M. S., Khong, K. W., & Chong, A. Y. L. (2016). Determinants of negative word-of-mouth communication using social networking sites. Information & Management, 53(4), 528-540. https://doi.org/10.1016/j.im.2015.12.002 DOI: https://doi.org/10.1016/j.im.2015.12.002
Bijlsma, M., van der Cruijsen, C., & Koldijk, J. (2022). Determinants of trust in banks' payment services during COVID: An exploration using daily data. De Economist, 170, 231-256. https://doi.org/10.1007/s10645-022-09405-9 DOI: https://doi.org/10.1007/s10645-022-09405-9
Boonlertvanich, K. (2019). Service quality, satisfaction, trust, and loyalty: The moderating role of main-bank and wealth status. International Journal of Bank Marketing, 37, 278-302. https://doi.org/10.1108/IJBM-02-2018-0021 DOI: https://doi.org/10.1108/IJBM-02-2018-0021
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3, 77-101. https://doi.org/10.1191/1478088706qp063oa DOI: https://doi.org/10.1191/1478088706qp063oa
Buriak, A., Vozno˜a'kova', I., Sułkowska, J., & Kryvych, Y. (2019). Social trust and institutional (Bank) trust: Empirical evidence of interaction. Economics & Sociology, 12, 116-129. https://doi.org/10.14254/2071-789X.2019/12-4/7 DOI: https://doi.org/10.14254/2071-789X.2019/12-4/7
Campbell, D. (2019). Edelman Trust Barometer: 2019 Trust in Financial Services. Available at https://www.edelman.com/sites/g/files/aatuss191/files/2019-04/2019_Edelman_Trust_Barometer_Financial_Services_Report_1.pdf.
Denzin, N. K. (1978). The research act: A theoretical introduction to sociological methods. New York: McGraw-Hill.
Dimitriadis, S. (2011). Customers' relationship expectations and costs as segmentation variables: Preliminary evidence from banking. Journal of Services Marketing, 25, 294-308. https://doi.org/10.1108/08876041111143122 DOI: https://doi.org/10.1108/08876041111143122
Dwidienawati, D., Arief, M., & Abdinagoro, S. B, Bina Nusantara University (BINUS), Indonesia. (2018). Is service fairness influencing customers' satisfaction and intention to pay insurance premium? A case in BPJS Kesehatan Indonesia. Journal of Business & Retail Management Research, 13, 38-48. https://doi.org/10.24052/JBRMR/V13IS01/ART-04 DOI: https://doi.org/10.24052/JBRMR/V13IS01/ART-04
Eriksson, C., Westman, G., & Hamberg, K. (2006). Content of childbirth-related fear in Swedish women and men -Analysis of an open-ended question. Journal of Midwifery & Women's Health, 51, 112-118. https://doi.org/10.1016/j.jmwh.2005.08.010 DOI: https://doi.org/10.1016/j.jmwh.2005.08.010
Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.
Funga'cˇova', Z., Hasan, I., & Weill, L. (2019). Trust in banks. Journal of Economic Behavior & Organization, 157, 452-476. https://doi.org/10.1016/j.jebo.2017.08.014 DOI: https://doi.org/10.1016/j.jebo.2017.08.014
Funga'cˇova', Z., Kerola, E., & Weill, L. (2022). Does experience of banking crises affect trust in banks? Journal of Financial Services Research, 62, 61-90. https://doi.org/10.1007/s10693-021-00365-w DOI: https://doi.org/10.1007/s10693-021-00365-w
Grable, J., Kwak, E. J., & Archuleta, K. (2023). Distrust of banks among the unbanked and banked. International Journal of Bank Marketing, 41, 1498-1520. https://doi.org/10.1108/IJBM-10-2022-0441 DOI: https://doi.org/10.1108/IJBM-10-2022-0441
Greve, H. R., Kim, J. Y., & Teh, D. (2016). Ripples of fear: The diffusion of a bank panic. American Sociological Review, 81, 396-420. https://doi.org/10.1177/0003122416629611 DOI: https://doi.org/10.1177/0003122416629611
Guiso, L., & Minetti, R. (2004). Multiple creditors and information rights: Theory and evidence from us firms. Available at SSRN 527222.
Hansen, T. (2012). Understanding trust in financial services: The influence of financial healthiness, knowledge, and satisfaction. Journal of Service Research, 15(3), 280-295. 226 I. https://doi.org/10.1177/1094670512439105 DOI: https://doi.org/10.1177/1094670512439105
Hansen, T. (2014). The role of trust in financial customer-seller relationships before and after the financial crisis. Journal of Consumer Behaviour, 13(6), 442-452. https://doi.org/10.1002/cb.1493 DOI: https://doi.org/10.1002/cb.1493
Haynes, K. (2012). Reflexivity in qualitative research. Qualitative Organizational Research: Core Methods and Current Challenges, 26, 72-89. https://doi.org/10.4135/9781526435620.n5 DOI: https://doi.org/10.4135/9781526435620.n5
Ja¨rvinen, R. A. (2014). Consumer trust in banking relationships in Europe. International Journal of Bank Marketing, 32, 551-566. https://doi.org/10.1108/IJBM-08-2013-0086 DOI: https://doi.org/10.1108/IJBM-08-2013-0086
Jiang, M., Rifon, N. J., Cotten, S. R., Alhabash, S., Tsai, H. Y. S., Shillair, R., & LaRose, R. (2022). Bringing older consumers onboard to online banking: A generational cohort comparison. Educational Gerontology, 48, 114-131. https://doi.org/10.1080/03601277.2021.2021730 DOI: https://doi.org/10.1080/03601277.2021.2021730
Kidron, A., & Kreis, Y. (2020). Listening to bank customers: The meaning of trust. International Journal of Quality and Service Sciences, 12, 355-370. https://doi.org/10.1108/IJQSS-10-2019-0120 DOI: https://doi.org/10.1108/IJQSS-10-2019-0120
Kirk, J., & Miller, M. L. (1986). Reliability and validity in qualitative research. (Vol. 1). Newbury Park, CA: Sage Publications, Inc. https://doi.org/10.4135/9781412985659 DOI: https://doi.org/10.4135/9781412985659
Knell, M., & Stix, H. (2015). Trust in banks during normal and crisis times-Evidence from survey data. Economica, 82, 995-1020. https://doi.org/10.1111/ecca.12162 DOI: https://doi.org/10.1111/ecca.12162
Lachance, M. E., & Tang, N. (2012). Financial advice and trust. Financial Services Review, 21, 209-226. https://doi.org/10.61190/fsr.v21i3.4674 DOI: https://doi.org/10.61190/fsr.v21i3.4674
Lagarde, C. (2014). Empowerment through financial inclusion, address to the international forum for financial inclusion. International Monetary Fund. Available at: https://www.imf.org/en/News/Articles/2015/09/28/04/53/sp062614a
Luo, X., Li, H., Zhang, J., & Shim, J. P. (2010). Examining multi-dimensional trust and multi-faceted risk in initial acceptance of emerging technologies: An empirical study of mobile banking services. Decision Support Systems, 49, 222-234. https://doi.org/10.1016/j.dss.2010.02.008 DOI: https://doi.org/10.1016/j.dss.2010.02.008
Marcu, M. R. (2021). The impact of the COVID-19 pandemic on the banking sector. Management Dynamics in the Knowledge Economy, 9, 205-223. https://doi.org/10.2478/mdke-2021-0015 DOI: https://doi.org/10.2478/mdke-2021-0015
Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 20, 709-734. https://doi.org/10.2307/258792 DOI: https://doi.org/10.2307/258792
Monferrer-Tirado, D., Estrada-Guille'n, M., Fandos-Roig, J. C., Moliner-Tena, M. A' ., & Garcı'a, J. S. (2016). Service quality in bank during an economic crisis. International Journal of Bank Marketing, 34, 235-259. https://doi.org/10.1108/IJBM-01-2015-0013 DOI: https://doi.org/10.1108/IJBM-01-2015-0013
Morse, J. M., Barrett, M., Mayan, M., Olson, K., & Spiers, J. (2002). Verification strategies for establishing reliability and validity in qualitative research. International Journal of Qualitative Methods, 1, 13-22. https://doi.org/10.1177/160940690200100202 DOI: https://doi.org/10.1177/160940690200100202
Mudd, S., Pashev, K. & Valev, N. T. (2010). The effect of loss experiences in a banking crisis on future expectations and behavior. The BE Journal of Macroeconomics, 10(1). https://doi.org/10.2202/1935-1690.2027 DOI: https://doi.org/10.2202/1935-1690.2027
Mukherjee, A., & Nath, P. (2003). A model of trust in online relationship banking. International Journal of Bank Marketing, 21, 5-15. https://doi.org/10.1108/02652320310457767 DOI: https://doi.org/10.1108/02652320310457767
Muller, L. A., & Turner, J. A. (2016). Strategic complexity in investment management fee disclosures. Financial Services Review, 25, 215-234. https://doi.org/10.61190/fsr.v25i3.3222 DOI: https://doi.org/10.61190/fsr.v25i3.3222
Namkung, Y., & Jang, S. (2010). Service failures in restaurants: Which stage of service failure is the most critical? Cornell Hospitality Quarterly, 51, 323-343. https://doi.org/10.1177/1938965510364488 DOI: https://doi.org/10.1177/1938965510364488
Neuendorf, K. A. (2017). The content analysis guidebook. Thousand Oaks, CA: Sage. https://doi.org/10.4135/9781071873045 DOI: https://doi.org/10.4135/9781071873045
Nienaber, A. M., Hofeditz, M., & Searle, R. H. (2014). Do we bank on regulation or reputation? A meta-analysis and meta-regression of organizational trust in the financial services sector. International Journal of Bank Marketing, 32, 367-407. https://doi.org/10.1108/IJBM-12-2013-0146 DOI: https://doi.org/10.1108/IJBM-12-2013-0146
Nun˜ez Letamendia, L., & Poher, B. (2020). The effect of financial literacy on trust: Do financially literate individuals have more trust in the financial system? Working Paper, April. Available at: https://fundacionmutualidadabogacia.
org/wp-content/uploads/2020/05/WP_FINANCIAL-LITERACY-TRUST-APRIL2020.pdf
Patton, M. (2002). Qualitative evaluation and research methods. Newbury Park, CA: Sage.
Pieters, H. C., & Dornig, K. (2013). Collaboration in grounded theory analysis: Reflections and practical suggestions. Qualitative Social Work, 12, 200-214. https://doi.org/10.1177/1473325011424085 DOI: https://doi.org/10.1177/1473325011424085
Redhead, K. (2011). Behavioral perspectives on client mistrust of financial services. Journal of Financial Service Professionals, 65, 50-61.
Roberts-Lombard, M., & Petzer, D. J. (2021). Relationship marketing: An S-O-R perspective emphasising the importance of trust in retail banking. International Journal of Bank Marketing, 39, 725-750. https://doi.org/10.1108/IJBM-08-2020-0417 https://doi.org/10.61190/fsr.v31i2/3.3541 DOI: https://doi.org/10.1108/IJBM-08-2020-0417
Rogers, R. W. (1975). A protection motivation theory of fear appeals and attitude change1. The Journal of Psychology, 91, 93-114. https://doi.org/10.1080/00223980.1975.9915803 DOI: https://doi.org/10.1080/00223980.1975.9915803
Shih, Y. Y., & Fang, K. (2004). The use of a decomposed theory of planned behavior to study Internet banking in Taiwan. Internet Research, 14, 213-223. https://doi.org/10.1108/10662240410542643 DOI: https://doi.org/10.1108/10662240410542643
Shim, S., Serido, J., & Tang, C. (2013). After the global financial crash: Individual factors differentiating young adult consumers' trust in banks and financial institutions. Journal of Retailing and Consumer Services, 20, 26-33. https://doi.org/10.1016/j.jretconser.2012.10.001 DOI: https://doi.org/10.1016/j.jretconser.2012.10.001
Tuval-Mashiach, R. (2017). Raising the curtain: The importance of transparency in qualitative research. Qualitative Psychology, 4, 126-138. https://doi.org/10.1037/qup0000062 DOI: https://doi.org/10.1037/qup0000062
Uslaner, E. M. (2010). Trust and the economic crisis of 2008. Corporate Reputation Review, 13, 110-123. https://doi.org/10.1057/crr.2010.8 DOI: https://doi.org/10.1057/crr.2010.8
van der Cruijsen, C., de Haan, J., & Jonker, N. (2022). Has the COVID-19 pandemic affected public trust? Evidence for the US and the Netherlands. Journal of Economic Behavior & Organization, 200, 1010-1024. https://doi.org/10.1016/j.jebo.2022.07.006 DOI: https://doi.org/10.1016/j.jebo.2022.07.006
van der Cruijsen, C., de Haan, J., & Roerink, R. (2021). Financial knowledge and trust in financial institutions. Journal of Consumer Affairs, 55, 680-714. https://doi.org/10.1111/joca.12363 DOI: https://doi.org/10.1111/joca.12363
van Esterik-Plasmeijer, P. W., & Van Raaij, W. F. (2017). Banking system trust, bank trust, and bank loyalty. International Journal of Bank Marketing, 35, 97-111. https://doi.org/10.1108/IJBM-12-2015-0195 DOI: https://doi.org/10.1108/IJBM-12-2015-0195
Zolait, A. H. S., & Sulaiman, A. (2008). Incorporating the innovation attributes introduced by rogers' theory into theory of reasoned action: An examination of internet banking adoption in Yemen. Computer and Information Science, 1, 36-51. https://doi.org/10.5539/cis.v1n1p36 DOI: https://doi.org/10.5539/cis.v1n1p36
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Academy of Financial Services
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Author(s) retain copyright and grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows to share the work with an acknowledgment of the work's authorship and initial publication in this Journal.
This license allows the author to remix, tweak, and build upon the original work non-commercially. The new work(s) must be non-commercial and acknowledge the original work.
