Rebuild Trust or Stigmatize Unfair Practices: How Can Consumer Protection Institutions Shape Pro-social Attitudes of Banks

Abstract

Background: One of the problems visible on the financial market is the crisis of social trust institutions. Consumers of financial services should be protected, but inadequate protection has negative consequences for consumers themselves, but also for the functioning and stability of the market.Research objectives: The aim of the study was to examine whether by analysing consumer decision making mechanisms, a path towards improving mutual trust between consumers and financial service providers can be identified.Research design and methods: Based on the data obtained in the CAWI survey, an analysis of social preferences and protection of consumers of financial services (in the light of Ajzen’s Theory of Planned Behaviour) was carried out on a group of 200 respondents.Results: Social norms are the main determinant of consumer behaviour in the financial market, and therefore consumer norms need to be changed. Social norms can be changed by attitudes, but the process is long and requires the efforts of all market participants. Although the road to rebuilding trust by changing social norms seems long, the direction looks right.Conclusions: Institutional protection (understood both as requirements for banks and consumer financial education and rights) is not sufficient to ensure effective protection of consumers of financial services. An important pillar of this protection is also trust between consumers and financial institutions. This trust should be built on both sides and linked to a change in acceptable social norms.