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The Importance of Institutional Trust for Financial Service Providers among Young Adults and Their Parents in an Emerging Market

Author

Listed:
  • Boglárka Zsótér

    (Institute of Marketing and Media, Corvinus University of Budapest, Hungary)

  • András Bauer

    (Institute of Marketing and Media, Corvinus University of Budapest, Hungary)

Abstract

Trust in financial institutions can be seen as a foundation for loyalty and profits in the banking industry and is relevant for the macro economy as well. Young customers are more likely to lack trust due to their lack of personal experience in finance, although parental advice may lower their risk. In this paper the authors combine trust measures with intergenerational communication theory and test it on a large dyadic sample using Z-scores. The results show a strong, holistic intergenerational effect on institutional trust, but shed light on heterogeneity in the sample due to gender, financial independence and different communication styles.

Suggested Citation

  • Boglárka Zsótér & András Bauer, 2019. "The Importance of Institutional Trust for Financial Service Providers among Young Adults and Their Parents in an Emerging Market," Society and Economy, Akadémiai Kiadó, Hungary, vol. 41(2), pages 211-225, June.
    • Handle: RePEc:aka:soceco:v:41:y:2019:i:2:p:211-225
    Note: This work was created in commission of the National University of Public Service under the priority project KÖFOP-2.1.2-VEKOP-15-2016-00001 titled “Public Service Development Establishing Good Governance” and Budapest Metropolitan University.
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    References listed on IDEAS

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    More about this item

    Keywords

    institutional trust; financial service providers; young adults; financial socialization; intergenerational effects;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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