Antecedents of trust in retail banking: evidence from South Africa


  • Ephrem Habtemichael Redda North-West University
  • Marko van Deventer North-West University


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


Amin, M., Isa, Z. & Fontaine, R. (2013). Contrasting the drivers of customer satisfaction on image, trust, and loyalty of Muslim and non-Muslim customers in Malaysia. International Journal of Bank Marketing, 31(2), 79-97.

Andreassen, W.T. (1999). What drives customer loyalty with complaint resolution? Journal of Service Research, 1(4), 324–332.

Berry, L. L., Parasuraman, A., & Zeithaml, V. A. (1994). Improving service quality in America: lessons learned. Academy of Management Perspectives, 8(2), 32-45.

Bloemer, J. & De Ruyter, K. (1998). On the relationship between store image, store satisfaction, and store loyalty. European Journal of Marketing, 32(5/6), 499-513.

Bloemer, J., Ruyter, K.D. & Peeters, P. (1998). Investigating drivers of bank loyalty: the complex relationship between image, service quality and satisfaction. International Journal of bank marketing, 16(7), 276-286.

Debab, N., & Yateem, H. A. (2012). Assessing the Factors that Influence Trust in the Bahraini Retail Banking after the Financial Crisis. International Journal of Business Management & Economic Research, 3(3).

Deloitte and the Vlerick Leuven Gent Management School (2010). “Winning back your customers retail banking study 2010”.

Doney, P. M., & Cannon, J. P. (1997). An examination of the nature of trust in buyer–seller relationships. Journal of marketing, 61(2), 35-51.

Ennew, C., & Sekhon, H. (2007). Measuring trust in financial services: The trust index. Consumer Policy Review, 17(2), 62.

Flavian, C., Guinaliu, M. & Torres, E. (2005). The influence of corporate image on consumer trust: a comparative analysis in traditional versus internet banking. Internet Research, 15(4), 447-470.

Flavián, C., Guinalíu, M., & Gurrea, R. (2006). The role played by perceived usability, satisfaction and consumer trust on website loyalty. Information & management, 43(1), 1-14.

Ganesan, S., & Hess, R. (1997). Dimensions and levels of trust: implications for commitment to a relationship. Marketing letters, 8(4), 439-448.

Garbarino, E., & Johnson, M. S. (1999). The different roles of satisfaction, trust, and commitment in customer relationships. Journal of marketing, 63(2), 70-87.

Ghasemi, N. & Beiranvand, T. (2016). Effect of customer commitment on trust and loyalty of customers towards air travel agencies in Ahwaz City, Iran. Journal of Administrative Management, Education and Training, 12(3), 92-101.

Grönroos, C. (1984). A service quality model and its marketing implications. European Journal of Marketing, 18(4), 36-44.

Harrison, T. (2000). Financial Services Marketing: Harlow, England: Pearson Education.

Hair, J.F., Black, W.C., Babin, B.J. & Anderson, R.E. (2010). Multivariate data analysis: A global perspective. New Jersey: Pearson Prentice Hall.

Hoq, M.Z., Amin, M. & Rumki, N.S. (2010). The effect of trust, customer satisfaction and image on customers’ loyalty in Islamic banking sector. South Asian Journal of Management, 17(1):70-93.

Ibrahim, H. & Najjar, F. (2008). Relationship bonding tactics, personality traits, relationship quality and customer loyalty: behavioral sequence in retail environment, ICFAI Journal of Services Marketing, 6(4), 6-37.

Kantsperger, R. & Kunz, W.H. (2010). Consumer trust in service companies: a multiple mediating analysis. Managing Service Quality, 20(1), 4-25.

Kennedy, M. S., Ferrell, L. K., & LeClair, D. T. (2001). Consumers' trust of salesperson and manufacturer: an empirical study. Journal of Business Research, 51(1), 73-86.

Kinda, T, & Loening, J.L. (2010). Small enterprise growth and the rural investment climate: evident form Tanzania. African Development Review, 22, 173-207.

Lewis, B.R. & Soureli, M. (2006). The antecedents of consumer loyalty in retail banking, Journal of Consumer Behaviour, 5, 15-31.

Lovelock, C. & Wright, L. (1999). Principles of marketing and management. New York: Pearson Prentice Hall.

Malhotra, N.K. (2010). Marketing research: An applied orientation. New Jersey: Pearson Prentice Hall.

Markert, J. (2004). Demographics of age: generational and cohort confusion. Journal of current issues and research in advertising, 26(2), 11-25.

Markwick, N. & Fill, C. (1997). Towards a framework for managing corporate identity. European Journal of Marketing, 31(5), 340-55.

Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of management review, 20(3), 709-734.

Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of marketing, 58(3), 20-38.

Mukherjee, A., & Nath, P. (2003). A model of trust in online relationship banking. International journal of bank marketing. 21(1), 5-15.

Pallant, J. (2010). SPSS survival manual: A step by step guide to data analysis using SPSS. England: Open University Press.

Pew Research Center. (2010). Millennials: a portrait of Generation Next. Confident. Connected. Open to Change. [Accessed 2017/04/01].

Rauyruen, P. & Miller, K.E. (2007). Relationship quality as a predictor of B2B customer loyalty, Journal of Business Research, 60(1), 21-31.

Redda, E.H., Surujlal, J. & Leendertz, V. (2015). Internet banking service quality scale development in South Africa: A qualitative approach. Proceedings of the 27th Annual SAIMS Conference, 800-816.

ROY, S. K., Eshghi, A., & Shekhar, V. (2011). Dimensions of trust and trustworthiness in retail banking: evidence from India. The Marketing Management, 21(1), 97-110.

Sheth, Jagdish N. and Rajendra S. Sisodia (Eds) (2006), Does Marketing Need Reform? (New York: M.E. Sharpe, Inc.).

Singh, J., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in consumer satisfaction and loyalty judgments. Journal of the Academy of marketing Science, 28(1), 150-167.

Statistics South Africa. 2018. Statistical release: po302: mid-year population estimates. Date of access: 6 March 2019.

Suh, B., & Han, I. (2003). The impact of customer trust and perception of security on the acceptance of electronic commerce, International Journal of Electronic Commerce, 7 (3), 135-161.

Theron, E., Terblanche, N. & Boshoff, C. (2011). The antecedents of trust in business-to-business financial services. Journal of Business-to-Business Marketing, 18, 188-213.

Thomas, J. (2009). "Trust" In Customer Relationship: Addressing The Impediments In Research. ACR Asia-Pacific Advances.

Torres, M., Summers, T. & Belleau, D. (2001). Men’s shopping satisfaction and store references. Journal of Retailing and Consumer Services, 8, 205-212.

Twenge, J.M. & Campbell, S.M. (2008). Generational differences in psychological traits and their impact on the workplace. Journal of Managerial Psychology, 23(8), 862-877.

Veloutsou, C., Daskou, S. & Daskou, A. (2004). Are the determinants of bank loyalty brand specific? Journal of Financial Services Marketing, 9(2), 113-125.

Walter, A., Mueller, T. A., & Helfert, G. (2000, September). The impact of satisfaction, trust, and relationship value on commitment: Theoretical considerations and empirical results. In IMP Conference Proceedings (pp. 07-09). United Kingdom: Bath.

Williams, K.C. & Page, R.A. (2011). Marketing to the generations. Journal of Behavioral Studies in Business, 3(3), 1-17.

Yoon, S. J. (2002). The antecedents and consequences of trust in online-purchase decisions. Journal of interactive marketing, 16(2), 47-63.

Zeithaml, V.A. (1988). Customer perceptions of price, quality, and value: a measure-end model and synthesis of evidence. Journal of Marketing, 52, 2-22.




How to Cite

Redda, E. H., & van Deventer, M. (2020). Antecedents of trust in retail banking: evidence from South Africa: Array. Acta Universitatis Danubius. Œconomica, 16(4). Retrieved from



Business Administration and Business Economics