Exploring Factors Influencing Trust in Banks: A Multifaceted Analysis

Abstract

The intricate dynamics of trust formation within financial institutions, particularly in the banking sector, are explored in this research, combined with an exploration of the influence of attitudes and sociodemographic factors. Employing an ordered-logistic regression model on a different sample, we scrutinized the nexus between individuals' trust in banks and various factors such as age, educational attainment, technological proficiency, religious affiliations, marital status, income level, and family size. Our findings reveal several significant correlations: technological proficiency, age, and education all boost individuals' confidence in banks, whereas religious beliefs exhibit a negative relationship. Conversely, we have noted that the total number of children in a family, income level, and marital status exert adverse effects on trust in banking institutions. These discoveries underscore the complex interplay between personal attributes and attitudes in shaping perceptions of the trustworthiness of financial organizations. Policymakers and banking professionals must comprehend these dynamics to foster trust and stability within the banking sector.