Cognitive catalysts for distrust in financial services markets: An integrative review

The growing recognition for the role of trust in financial services transactions has become more evident since the global financial crisis. A dominant perspective arising from this recognition has been regarding the responsibility of financial services providers for the depletion of consumer trust in the financial services sector. However, the loss of trust that may result in many financial transactions can also be attributed to consumers’ own lack of discipline and poor knowledge of financial matters. In this article four cognitive phenomena that inhibit consumers’ information processing abilities and contribute to the depletion of trust in financial services transactions will be discussed. The responsibilities of marketers, regulators and educators in equipping consumers with the means to overcome these cognitive limitations in order to improve their financial decision quality are discussed.