IDEAS home Printed from https://ideas.repec.org/a/pal/jofsma/v30y2025i2d10.1057_s41264-025-00303-0.html
   My bibliography  Save this article

Patterns of trust in financial services: critical factors and gender differences

Author

Listed:
  • Maryam Sholevar

    (Heriot-Watt University)

  • Reinhard Bachmann

    (University of London)

Abstract

This study investigates the interrelationships among factors of trust in financial services. Additionally, it examines how these factors correlate with gender differences, offering insights into trust patterns in emerging markets. Ethiopia, characterised by economic and financial volatility, was selected as a case study for an emerging market. A sample of 470 individuals was surveyed with the assistance of interviewers to overcome language and literacy obstacles, with balanced representation across key demographics, particularly gender, enabling robust statistical analysis. Logistic regression and correlation matrices were employed to analyse trust. The study reveals that correlations between trust factors vary widely but are predominantly positive, with only one exception. Gender differences in trust factors are evident but do not represent significant schisms in financial behaviour. Unexpectedly, digital trust exhibits a strong positive correlation with age, challenging assumptions about generational preferences for financial technologies. While the sample size aligns with standard practices in similar studies, expanding the dataset would improve the precision of the analysis. The complexity of administering detailed surveys at scale poses a challenge for single studies. This study demonstrates the utility of combining traditional determinants of trust with advanced statistical methods, such as logistic regression, to uncover probabilities and interactions among trust factors. Gender differences in trust patterns exist but are less pronounced than expected, even in a society with significant gender disparity. Other demographic factors, such as age, education, and income, play more substantial roles in shaping trust behaviours, suggesting that financial inclusion efforts should prioritise these variables. This research highlights the transformative potential of digital trust, which extends beyond traditional definitions of trust. Despite operating in a society with high gender disparity, the findings indicate that gender is not a significant concern in financial trust patterns.

Suggested Citation

  • Maryam Sholevar & Reinhard Bachmann, 2025. "Patterns of trust in financial services: critical factors and gender differences," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 30(2), pages 1-15, June.
    • Handle: RePEc:pal:jofsma:v:30:y:2025:i:2:d:10.1057_s41264-025-00303-0
    DOI: 10.1057/s41264-025-00303-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41264-025-00303-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41264-025-00303-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. S M A Moin & James F. Devlin & Sally McKechnie, 2017. "Trust in financial services: the influence of demographics and dispositional characteristics," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 22(2), pages 64-76, June.
    2. Jonathan Ashworth & Charles A.E. Goodhart, 2020. "The Surprising Recovery of Currency Usage," International Journal of Central Banking, International Journal of Central Banking, vol. 16(3), pages 239-277, June.
    3. John R. J. Thompson & Longlong Feng & R. Mark Reesor & Chuck Grace, 2021. "Know Your Clients’ Behaviours: A Cluster Analysis of Financial Transactions," JRFM, MDPI, vol. 14(2), pages 1-29, January.
    4. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    5. Carin van der Cruijsen & Jakob de Haan & Ria Roerink, 2023. "Trust in financial institutions: A survey," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1214-1254, September.
    6. Dupas, Pascaline & Robinson, Jonathan, 2008. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," Santa Cruz Department of Economics, Working Paper Series qt01x12117, Department of Economics, UC Santa Cruz.
    7. D. Harrison McKnight & Vivek Choudhury & Charles Kacmar, 2002. "Developing and Validating Trust Measures for e-Commerce: An Integrative Typology," Information Systems Research, INFORMS, vol. 13(3), pages 334-359, September.
    8. Renate Schubert, 1999. "Financial Decision-Making: Are Women Really More Risk-Averse?," American Economic Review, American Economic Association, vol. 89(2), pages 381-385, May.
    9. Zuzana Fungáčová & Eeva Kerola & Laurent Weill, 2022. "Does Experience of Banking Crises Affect Trust in Banks?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 62(1), pages 61-90, October.
    10. Rajeev Kumra & Praveen Kumar Sharma, 2022. "Mediating role of trust in the impact of perceived empathy and customer orientation on intention to continue relationship in Indian banks," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(4), pages 372-386, December.
    11. Ashworth, J. & Goodhart, C. A. E., 2020. "The surprising recovery of currency usage," LSE Research Online Documents on Economics 105303, London School of Economics and Political Science, LSE Library.
    12. Thorsten Beck & Asli Demirgüç-Kunt & Patrick Honohan, 2009. "Access to Financial Services: Measurement, Impact, and Policies," The World Bank Research Observer, World Bank, vol. 24(1), pages 119-145, February.
    13. Ghosh, Saibal, 2021. "How important is trust in driving financial inclusion?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).
    14. Robinson, Jonathan & Dupas, Pascaline, 2009. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," Santa Cruz Department of Economics, Working Paper Series qt34w0w53t, Department of Economics, UC Santa Cruz.
    15. James Lappeman & Siddeeqah Marlie & Tamryn Johnson & Sloane Poggenpoel, 2023. "Trust and digital privacy: willingness to disclose personal information to banking chatbot services," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(2), pages 337-357, June.
    16. Pascaline Dupas & Jonathan Robinson, 2013. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 163-192, January.
    17. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claude Bernard Lontchi & Baochen Yang & Yunpeng Su, 2022. "The Mediating Effect of Financial Literacy and the Moderating Role of Social Capital in the Relationship between Financial Inclusion and Sustainable Development in Cameroon," Sustainability, MDPI, vol. 14(22), pages 1-24, November.
    2. Di Giannatale, Sonia & Roa, María José, 2016. "Formal Saving in Developing Economies: Barriers, Interventions, and Effects," IDB Publications (Working Papers) 8107, Inter-American Development Bank.
    3. Singh, Nirvikar, 2018. "Financial Inclusion: Concepts, Issues and Policies for India," MPRA Paper 91047, University Library of Munich, Germany.
    4. Grohmann, Antonia & Klühs, Theres & Menkhoff, Lukas, 2018. "Does financial literacy improve financial inclusion? Cross country evidence," World Development, Elsevier, vol. 111(C), pages 84-96.
    5. Ingela Alger & Laura Juarez & Miriam Juarez-Torres & Josepa Miquel-Florensa, 2023. "Do Women Contribute More Effort than Men to a Real Public Good?," The World Bank Economic Review, World Bank, vol. 37(2), pages 205-220.
    6. Mayra Buvinic & Megan O’Donnell, 2017. "Gender Matters in Economic Empowerment Interventions: A Research Review," Working Papers id:11926, eSocialSciences.
    7. Zelu, Barbara Ama & Iranzo, Susana & Perez-Laborda, Alejandro, 2024. "Financial inclusion and women economic empowerment in Ghana," Emerging Markets Review, Elsevier, vol. 62(C).
    8. repec:rza:wpaper:893 is not listed on IDEAS
    9. Giorgia Barboni & Nicol√°s de Roux & Santiago Perez-Cardona, 2024. "Perceived Social Acceptance and Migrants' Financial Inclusion," Documentos CEDE 21278, Universidad de los Andes, Facultad de Economía, CEDE.
    10. Cyn-Young Park & Rogelio Mercado Jr., 2018. "Financial Inclusion: New Measurement and Cross-Country Impact Assessment," Working Papers wp29, South East Asian Central Banks (SEACEN) Research and Training Centre.
    11. Ahrang Lee, 2013. "Welfare Losses from Financial Frictions: The Role of Fixed Costs," 2013 Meeting Papers 1359, Society for Economic Dynamics.
    12. Mayra Buvinic & Megan O’Donnell, 2017. "Gender Matters in Economic Empowerment Interventions: A Research Review - Working Paper 456," Working Papers 456, Center for Global Development.
    13. Helke Seitz, 2020. "Subgroup Analysis of Investment Constraints: Evidence from Ugandan Microenterprises," Discussion Papers of DIW Berlin 1920, DIW Berlin, German Institute for Economic Research.
    14. Kast, Felipe & Meier, Stephan & Pomeranz, Dina, 2018. "Saving more in groups: Field experimental evidence from Chile," Journal of Development Economics, Elsevier, vol. 133(C), pages 275-294.
    15. Fenella Carpena & Shawn Cole & Jeremy Shapiro & Bilal Zia, 2019. "The ABCs of Financial Education: Experimental Evidence on Attitudes, Behavior, and Cognitive Biases," Management Science, INFORMS, vol. 65(1), pages 346-369, January.
    16. Barboni, Giorgia & de Roux, Nicolás & Perez-Cardona, Santiago, 2025. "Perceived Social Acceptance and Migrants’ Financial Inclusion," CAGE Online Working Paper Series 745, Competitive Advantage in the Global Economy (CAGE).
    17. Freddy CASTRO & Daniela LONDO�O & �lvaro Jos� PARGA CRUZ & Camilo PE�A G�MEZ, 2021. "Factores que inciden en la decisión de ahorro de los microempresarios," Archivos de Economía 19338, Departamento Nacional de Planeación.
    18. Kass-Hanna, Josephine & Lyons, Angela C. & Liu, Fan, 2022. "Building financial resilience through financial and digital literacy in South Asia and Sub-Saharan Africa," Emerging Markets Review, Elsevier, vol. 51(PA).
    19. Ky, Serge Stéphane & Rugemintwari, Clovis & Sauviat, Alain, 2021. "Friends or Foes? Mobile money interaction with formal and informal finance," Telecommunications Policy, Elsevier, vol. 45(1).
    20. Dar, Shafkat Shafi & Sahu, Sohini, 2022. "The effect of language on financial inclusion," Economic Modelling, Elsevier, vol. 106(C).
    21. Nix, Emily & Gamberoni, Elisa & Heath, Rachel, 2014. "Bridging the gap : identifying what is holding self-employed women back in Ghana, Rwanda, Tanzania, the Republic of Congo, and Uganda," Policy Research Working Paper Series 6946, The World Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jofsma:v:30:y:2025:i:2:d:10.1057_s41264-025-00303-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.