Investigating trust in the Israeli banking system from the reciprocating perspectives of customers and bankers: a mixed methods study

Abstract

Purpose

This study identifies predictors of customers' trust in banks at both the banking system level and toward individual banks. A mixed methods technique is utilized which combines both customers' and bankers' perspectives.

Design/methodology/approach

The study utilizes mixed methods, including a questionnaire survey of 1017 bank customers from retail banks, together with qualitative research derived from ten interviews with Israeli bankers.

Findings

The quantitative study shows that transparency is mediated between perception of price fairness and integrity of the banking system level and trust toward individual banks. Customer satisfaction was found to be a mediator between integrity of the banking system and trust in the individual bank. Qualitative analysis of interviews with bankers yielded six themes: integrity, transparency, price perception, service, bank image and regulation.

Research limitations/implications

This study adumbrates specific aspects of the banking system and of individual banks. Cultural differences pertaining to trust might validate the findings when the study is replicated in other countries.

Originality/value

Since customers are universally considered as key bank stakeholders, insights are provided concerning determinants at the banking system level and toward individual banks, both crucial to explain trust. From both managerial and policymaking perspectives, this study contains valuable practical implications.