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The first research question sought to identify trustworthiness factors that can be regarded as having the strongest influence on the decision to trust the bank by its customers. This section discusses the justification for using the identified trustworthiness determinants: competence, integrity and consistency, benevolence, value alignment, communication and structural assurance in the development of hypotheses (H1-H6) to answer the first research question:

Research Question 1: Which trustworthiness factors can be regarded as having the strongest influence on the decision to trust bank by its customer?

3.3.1 Competence

The relationship between competence also referred to as skill and trustworthiness is acknowledged by many researchers including Kharouf et al. (2014); Ennew and Sekhon (2007); Kharouf (2010) and Mayer et al. (1995) who all concluded that competence has a positive influence on the trustworthiness of a service provider. Competence boosts confidence in the abilities of exchange partners and is based on the belief that the other party is capable and reliable to deliver on promises made (McAllister, 1995). Other researchers associate it with the knowledge, expertise and ability (skill) to fulfil the needs of the trustor (Xie and Peng, 2009). Xie and Peng (2009) further suggest that the perceived competence of a company assists in rebuilding trust, especially after a service provider has experienced negative publicity. Thus, perceived competence mitigates the level of perceived financial risk as customer’s confidence in the service provider’s abilities to perform efficiently is boosted (Kharouf et al., (2014). Hurley et al. (2014) suggest that embedding adequate competence entails “…enhancing the speed and effectiveness of organisational learning to detect and correct emerging problems and unintended side-effects of organizational actions”. From a banking perspective, bank customers must be willing to take the risks associated with doing business with a particular bank and must be willing to accept or acknowledge the bank’s capability in delivering on its obligations. Thus, competence is linked to the organisation’s ability to deliver on its promises (Donney and Cannon, 1997). In the context of this study, the skills of the banker are fundamental in fulfilling obligations and knowledge about the other party comes into perspective as it “thickens or thins as a function of their cumulative interaction” (Kramer 1999:575). Competence is also important in the financial industry context as it is concerned with customer perceptions of the knowledge and skills of the service provider (Coulter and Coulter, 2002), especially when one considers the risks associated with financial exchanges (Gillespie and Hurley, 2013). Therefore:

H1: Competence has a positive influence on organisational trustworthiness

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3.3.2 Integrity (Consistency)

Bews and Rossouw (2002:382) define integrity as “[...] the application of a set of moral and ethical principles, acceptable to both trustor and trustee, which are predictable and reliable and which lead to equity”. Integrity can be demonstrated by how a service provider upholds a set of principles and values that the trustor finds acceptable (McKnight and Chervany, 2001).

Other researchers have reported that integrity is integral in fostering overall trust since it aids exchange partners to predict future behaviours under environments of uncertainty (Doney and Cannon, 1997). Mayer et al. (1995) view integrity as a commitment guided by certain principles that are demonstrated through several behaviours including honesty, predictability, credibility and dependability. Xie and Peng (2009) argue that corporate integrity is vital in rebuilding trustworthiness after negative publicity has tarnished the company image. This study argues that integrity and consistency seem to mean the same thing, because if a service provider is predictable and credible, it implies that they are consistent in the delivery of services. In support of this argument, Ennew and Sekhon (2007:64) define integrity as: “The extent to which a financial services institution is honest and consistent in what it does from a customer perspective”. Similarly, Mayer et al. (1995) argue that integrity is based on the perceived consistency between words and actions and alignment with internal beliefs.

McKnight, Cummings and Norman (1998) suggest that a trustor forms trustworthiness perceptions based on the predictability (consistency) of the trustee’s behaviour. In the context of a bank, if the bank is consistent in the delivery of its obligations to its customers, it will assist in reducing uncertainty and also in mitigating the customer’s perceived risk. It also enhances the trustworthiness perception in the mind of the consumer. Thus, consistency strengthens the predictability of the bank’s future performance while also helping to build trustworthiness (McKnight et al., 1998). Butler and Cantrell (1984) further suggest that promises made by service providers boost the consumer’s confidence in their expectations of the fulfilment of the service provider’s expected obligations. This implies that consistency and integrity strengthen the promise and also allows the consumers’ to make predictions of the service provider’s future performance, ultimately building trustworthiness. Therefore:

H2: Integrity (consistency) has a positive influence on organisational trustworthiness 3.3.3 Benevolence

Mayer et al. (1995:718-719) define benevolence as “the extent to which the trustee wants to do good to the trustor”. In their definition of trust, Doney and Cannon (1997:36) highlight the relationship between trust and benevolence in describing trust as “perceived credibility and benevolence of a target of trust”. Benevolence is about establishing mutually fulfilling

interactions rather than maximising profits and it is more conspicuous when the trustee has the choice to behave in an opportunistic manner, but opts not to do so (Kharouf et al., 2014).

The avoidance of this opportunistic behaviour signifies an act of benevolence (Mayer et al., 1995). Similarly, “Benevolence is based on the trustee’s willingness to establish mutually fulfilling interactions rather than maximizing their own profits” (Kharouf et al., 2014:364).

Customers are more inclined to trust service providers who they believe care about their welfare (Hurley, 2012). Hurley et al. (2014) suggest that banks can demonstrate benevolence through participating in community-building activities that are in line with their business models.

In addition, “Benevolence often precedes affective trust, as the knowledge that a service provider is willing to forgo some rewards in favour of a mutual benefit strengthens existing trustworthiness and future expectations” (Kharouf et al., 2014:364). Therefore, benevolence positively influences the affective aspects of the relationship by demonstrating a caring attitude towards the trustor (Mayer et al., 1995). This statement is reinforced by Ganesan (1994:3) who states that “Benevolence is based on the extent to which the consumer believes that the vendor has intentions beneficial to the [consumer] when new conditions arise, conditions for which a commitment was not made”. This definition is particularly relevant to the current study context in that, customers are facing challenges in accessing bank services for example, accessing their funds held by banks, challenges that they did not anticipate or plan for. Hence, there are new conditions on how they can access their funds, conditions that they did not bargain for initially. Thus, banks have the opportunity to demonstrate their caring and fairness in the way they assist customers to access their cash and mitigate other challenges bank customers are facing. Therefore:

H3: Benevolence has a positive influence on organisational trustworthiness.

3.3.4 Value Alignment (Shared Values)

Shared value is rooted in a company’s strategy and one way that the relationship between businesses partners can improve is through greater identification similarities of attitudes and opinions (Hofstede, 2001). This perceived value alignment boosts confidence in an exchange partner (Gill et al., 2006), which enhances trust levels in a service provider (Coulter and Coulter, 2003). Value alignment is particularly important in service industries like banks, because of the complexity of the services delivered which might also be easily accessible at times. Hence, perceived similarities have the potential to influence customers to trust the service provider (Gill et al., 2006). Morgan and Hunt (1994) as well as Ennew and Sekhon (2007) all concluded that value alignment contributes to the development of trust. The current

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research adopts the definition of shared values by Morgan and Hunt (1994) that regards shared values as, common beliefs in what constitute acceptable behaviours common and similarities in goals and beliefs of partners in business exchange. In the wake of the confidence crisis in the Zimbabwean banking sector, the relationship between banks and society (consumers) has grown increasingly combative, because of the continuous erosion of trust. It is therefore proposed that creating shared values, thus capturing profits while enabling individuals, institutions, and sectors to prosper, is fundamental in rebuilding trust. Therefore:

H4: Value alignment has a positive influence on organisational trustworthiness.

3.3.5 Communication

Roy et al. (2011) argue that communication is an important component in establishing a long-term relationship and that trust is an antecedent of communication. Similarly, Anderson and Narus (1990) position communication as an antecedent to trust. It is also argued that communication expedites the resolution of conflicts and ambiguities while also having a significant influence on customers’ future trustworthiness perceptions (Dwyer et al., 1987).

Hurley et al. (2014) suggest that, in the aftermath of a confidence crises, banks must identify new ways to engage stakeholders in an effort to enhance trust and improve relations.

Furthermore, it was established that both the frequency and intensity of communication increase the level of mutual trust while simultaneously facilitating the prompt resolution of disputes and misunderstandings (Mukherjee and Nath, 2003; Smith and Barclay, 1997). This argument is particularly relevant in the context of this study in that there are many misunderstandings and ambiguities in the Zimbabwean banking industry and communication might provide the much-needed clarification about certain issues affecting the banking sector.

Customer perceptions of effective communication are said to positively impact on organisational trust, as both parties will be under the assumption that the effective communication trend will continue in the future (Morgan and Hunt, 1994). In addition, Morgan and Hunt (1994) state that open communication facilitates the development of trust and effective communication is regarded as a high-level determinant of trust. This study takes the position that communication is important throughout the relationship between a bank and its customers as it will positively influence the customer’s trustworthiness perceptions. However, in the context of the present study, it should not be just about the intensity and frequency of the communication. Instead, banks should also focus on effective communication (Morgan and Hunt, 1994) as it is assumed to be more significant during a period of financial anxiety like the one prevailing in the Zimbabwean banking sector. Therefore:

H5: Communication has a positive influence on organisational trustworthiness.

3.3.6 Structural Assurance (Regulations and Control Mechanisms)

Generally, the banking sector is regarded as inherently unstable based on negative historical developments, and hence, consumers are concerned with the bank regulations, which justifies the need for structural assurance in a financial sector (Niemeyer, 2006). Contractual agreements often include structural assurance, which includes “legal, governmental, contractual and (other) regulatory structures that create an environment that feels safe and secure to participants” (McKnight et al., 2002:304). Systems-based trust develops if there are perceptions of a strong regulatory system that ensures the effectiveness and reliability of the financial system (Gillespie and Hurley, 2013). It is further argued that bank customers develop high trust levels towards their banks if there is an assurance of a sound regulatory framework (Gill et al., 2006). Regulation has been found to enhance confidence in the financial sector and that, “…customers’ perceptions of an organization’s level of compliance and conformity with laws and regulations is a necessity for banks’’ (Nienaber et al., 2014:388).

In the context of the banking industry, regulation enhances customer confidence and generate a generally positive attitude towards banks since depositors feel secure that they will not lose their money in the case of bank failures (Broaddus, 1994). However, it is important to note that consumer protection is more prevalent in developed countries as consumers have lots of options and confidence in the market mechanism instead of relying more on government regulations (Asher, 1998). This is contrary to the situation in developing countries where consumers mostly rely on the government intervention for protection (Al-Ghamdi, Sohail and Al-Khaldi, 2007). The strong banking regulations are, therefore, meant to encourage more consumers to use the banking system as they increase confidence in predicting banks’ future behaviours (Sitkin and Beis, 1994). Thus, structural assurance is considered as an important factor in this study that requires further investigation in order to understand how it influences consumer trust. The inclusion of structural assurance in this study is further reinforced by a number of banks that have been forced to shut down for various reasons prompting the question: is there a sound regulatory system in place to protect the interests of banking consumers in Zimbabwe? Given this context, the study investigates how structural assurance influences bank customers’ trustworthiness perceptions. Therefore:

H6: Structural Assurance has a positive influence on organisational trustworthiness

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