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

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.