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22 April 2022 Research Supervision label Working Papers

Trust in banks is key, especially in turbulent times. Using unique daily payment diary data for a representative panel of Dutch consumers, which has been enriched with questions on trust in banks' payment services, we examine the determinants of trust as well as to what extent
the COVID-crisis has affected trust. We have the following main findings. First, narrow-scope trust (trust in consumers' own bank payment services) is in general higher than broad-scope trust (trust in banks' payment services in general). Second, COVID-19 measures have affected trust in banks' payment services. The first lockdown and measures taken by banks - such as increasing contactless payment limits - increased narrow-scope trust and broad-scope trust. The second lockdown decreased both notions of trust. The crisis measures impacted the trust of the elderly the strongest. Third, personal characteristics are significantly related to trust in banks' payment services. We find that both types of trust are increasing with digital literacy and the ease of getting by with income. Also, people who hold an account with a large bank have higher broad-scope trust, while customers of small banks have higher narrow-scope trust.
Men have lower broad-scope trust, while there is no difference between men and women for narrow-scope trust. People with high income have higher broad-scope trust, while there is no effect on narrow-scope trust.

Keywords: trust in banks, COVID-19, crises measures, payments, payment diary data
JEL classifcations: D12, E42, G21

DNB Working Paper No. 720

No. 720 - Determinants of trust in banks' payment services during COVID: an exploration using daily data



  • Michiel Bijlsma
  • Carin van der Cruijsen
  • Jester Koldijk