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December 07, 2023
On December 7, 2023, our Maguire Fellows in Applied Ethics Drs. Jason Pattit and Katherina Pattit presented a poster at the CFP Board’s Academic Research Colloquium (ARC). Using the dataset from the Maguire Center for Ethics’ Trust in Financial Services Study, their poster showcased the factors influencing trust formation in financial services.
In business, trust is critical. In financial services, it’s even more so because of the fiduciary nature of many relationships in the industry. In their presentation, Drs. Pattit and Pattit explored the factors that contribute to the formation of trust for seven types of financial services providers.
Their analysis relied on 1,697 consumer responses to a self-administered online questionnaire. The questionnaire permitted assessment of trust levels held by: (1) consumers who had a relationship with a financial institution; and (2) consumers with no relationship, but familiarity with a particular type of service. The results show that there is a marked difference in the level of trust between the two groups for all seven types of financial services.
Investigating this “gap” further showed that the factors contributing to the formation of trust differed between the two groups. These findings offer three practical implications for financial services companies. First, companies need to demonstrate consistent values in all channels, including operations. Second, companies can be intentional about creating “experience points” for building trust. Third, companies need to recognize that bad experiences negatively affect trust and spill over into other areas.
Further insight on these recommendations for practice and the analysis behind them were presented in a poster at the 7th Annual Academic Research Colloquium of the CFP Board Center for Financial Planning on December 7, 2023, in Arlington, Virginia.
A related research brief, Pathways to Trust in Financial Services: A Closer Look, is available for download from the Center for Ethics’ website. The data explored here is applied further in the Center’s Trust & Leadership Certificate Program.