Interpersonal dimension of trust on customer interaction in the banking sector

Abstract

This study examines customer interaction in the banking sector. These interactions are strongly influenced by the dimensions of interpersonal trust, namely benevolence, cognitive, and affective trust. A survey was conducted in the banking sector of Sokoto State, Nigeria. A questionnaire was administered to 500 bank customers from 10 commercial banks, in which the respondents were asked to select their preferences based on a five-point Likert scale. The data were analyzed using PLS-SEM version 3.2. The results showed that benevolence, cognitive, and affective trust positively influence customer interaction in the banking sector in Sokoto State, Nigeria. In financial transactions, benevolence trust, in the form of care and protection from harm by the bank staff; cognitive trust, manifesting as reliability, reputation, competence, and commitment of bank staff; and affective trust, in the form of attention, emotional connection, and empathy shown by bank staff positively influence customer interaction in a bank. Bank executives and policymakers can draw lessons from these results and create awareness within the banking sector on factors that contribute toward retaining and attracting new customers. This will contribute significantly to the growth and development of the banking sector.