The effects of the elaboration likelihood model on initial trust formation in financial advisory services

Purpose In order for financial institutions to cope with increased competitive pressure from the financial technology companies, offering digital services such as a mobile service system (MSS) targeted for high net worth individuals (HNWIs) becomes critical. Despite long-term trustworthy relationshi...

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Bibliographic Details
Published in:International journal of bank marketing 2018-05, Vol.36 (3), p.572-590
Main Authors: Silic, Mario, Ruf, Christian
Format: Article
Language:English
Subjects:
Advisors
Bank marketing
Bank technology
Competition
Consumer behavior
Customer services
Experiments
Financial institutions
Financial services
Information systems
Mobile commerce
Quality of service
Retail banking
Trust
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Summary:Purpose In order for financial institutions to cope with increased competitive pressure from the financial technology companies, offering digital services such as a mobile service system (MSS) targeted for high net worth individuals (HNWIs) becomes critical. Despite long-term trustworthy relationships between HNWIs and financial advisors, studies suggest that the formation of initial trust poses a significant challenge. The purpose of this paper is to identify various features related to initial trust antecedents. Design/methodology/approach The study was conducted using the survey data, and employs variance-based structural equation modeling (SEM) techniques to test hypotheses. Findings The findings from a closed experiment with 107 participants suggest that compared to more traditional service systems, customers are more prone to the construct of service quality, and specifically professional, prompt, dependable and timely financial advice. Originality/value The study validated key constructs that positively influence the initial trust formation process and ultimately the intention to use in an MSS for the financial advisory. The authorts particularly emphasized the rebalancing and monitoring steps in the financial planning process between HNWIs and client advisors.
ISSN:0265-2323
1758-5937
DOI:10.1108/IJBM-02-2017-0038