Antecedents of trust in retail banking: evidence from South Africa

  • Ephrem Habtemichael Redda North-West University
  • Marko van Deventer North-West University
Keywords: Trust; customer value; satisfaction; commitment; image


In a challenging economic and financial environment, it is essential that retail banks uphold robust and mutually beneficial relationships with their customers. The youth of today, labelled Generation Y, in particular, is a demanding and lucrative current and future segment for retail banks. For this reason, it is important that retail banks meet the demands of this segment to help bolster trust and confidence in the bank. Understanding the factors that positively influence the Generation Y market segment’s trust in retail banks will assist banks in gaining valuable insights into enhancing trust among this customer base. As such, this study attempts to evaluate the factors that influence trust in retail banking among Generation Y consumers in the South African context. The study employed a descriptive research design, and a quantitative research method. A self-administered questionnaire was used to survey a convenience sample of 271 Generation Y banking consumers registered at the campuses of two public universities in the Gauteng Province of South Africa. Descriptive, reliability, correlations and multivariate regression analysis were performed to address the research problem. The results of the study suggest that Generation Y consumers’ perceived value and image of their retail bank as well as their commitment to and satisfaction with their retail bank have a statistically significant positive influence on their trust in the retail bank.

Author Biography

Marko van Deventer, North-West University

Senior lecturer


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