- Trust increases customer satisfaction (sources: “The Commitment-trust Theory of Relationship Marketing,” Journal of Marketing, Morgan and Hunt, 1994; “An Examination of the Nature of Trust in Buyerseller Relationships.,” Journal of Marketing, Doney and Cannon, 1997; and many others)
- Customer loyalty in banking can be explained to a large extent by customer satisfaction, trust, and communication (source: “The Role of Communication and Trust in Explaining Customer Loyalty: An Extension to the ECSI Model,” Ball. Coelho and Machas, 2004)
- A customer that does not trust its bank is likely to seek another banking partner (source: “The Central Role of Calculus-based Trust and Relational Trust in Bank-Small Firm Relationships,” Saparito, Chen et al., 2002).
There is evidence that a lack of customer trust in banks may hurt larger banks more than smaller banks (source: “Trust and Loyalty in Client-bank Relationships- a Qualitative Perspective,” Pirson, 2006). However, this is an industry issue that all institutions must address. Banks can ill afford challenges with attracting and retaining customers in this economic environment.