Dimensional hierarchy of trustworthiness of financial service providers

Purpose - The purpose of this study is to identify the underlying dimensions of trustworthiness of financial service providers in the Indian retail banking sector and to model trustworthiness as a set of second-order factors. The study replicates and extends the work of Ennew and Sekhon in the Indian context.Design methodology approach - Using the trustworthiness scale developed by Ennew and Sekhon this study identifies six first-order factors of trustworthiness for retail bankers in India using exploratory and confirmatory factor analysis. Then the study modeled trustworthiness as a set of three second-order factors using second-order confirmatory factor analysis.Findings - The first-order factors obtained for trustworthiness of retail bankers are customer orientation, integrity and honesty, communication and similarity, shared values, expertise, and ability and consistency. The second-order confirmatory factor analysis resulted in three higher order factors namely, competency, openness and benevolence.Practical implications - The various dimensions of trustworthiness should be viewed as levers for improving a bank's trustworthiness in the minds of its current customers. At the same time, these dimensions will help them in reflecting an image of trustworthiness in the minds of its potential customers. Establishment of trustworthiness as an element of corporate image will provide competitive advantage to the service firms and improve their financial performance.Originality value - The research tests for the reliability and validity of the trustworthiness scale of Ennew and Sekhon. This study provides a window to the dimensions on which retail bank customers in an emerging economy such as India perceive a retail bank's trustworthiness. Furthermore, this study is an attempt to model trustworthiness as a set of second-order factors.