The concept of confidence in bank

Abstract

Confidence in commercial banks is considered an important factor that ensures a successful commercial banking operations and development, and provides continuous, high-quality consumer and commercial banking cooperation. In recent years this sector has been characterized as volatile and constantly loosing consumer confidence. This paper analyzes the scientific literature on the topic of theoretical concepts of trust; influencing factors in the formation of the consumer confidence in commercial banks are discussed; the model of consumers‘ confidence in commercial banking is provided. The model puts the influencing factors into three categories, representing trust formation stages. The first stage in the formation of confidence is attributed to the factors determining the initial choice of the bank. In other words, this is the information that a potential commercial banking services consumer can access without starting the co-operation with the certain bank. The formation of a second phase encapsulates confidence factors affecting further cooperation with a commercial bank, i.e. the information that the user receives in collaboration with a financial institution and the opinion that he (the user) of the financial institution, forms in the initial phase of cooperation. The third phase consists of the factor, determining the emergence of trust in commercial banks.