In the pursuit of financial innovation-Led financial inclusion : a proposed construct for financial trust

The study develops a comprehensive scale of trust in the financial system, to account for its various dimensions. A multistage approach is adopted in the study for this purpose. After reviewing relevant literature and conducting focused group discussions, we collected data from investors through a questionnaire. Finally, we use principal component analysis (PCA) to perform exploratory factor analysis (EFA) in order to investigate the relevant items in each dimension with confirmation of reliability and validity. Our results suggest that 48 items, distributed across five sub constructs of trust, can be applied to assess trust in the financial system. Among the many sub constructs of trust, we ultimately conclude that structural assurance, competence, integrity, benevolence, and transparency are most applicable to financial trust. Because trust is an important consideration along with other barriers to financial inclusion, the study offers many insights for managers of financial institutions, regulatory authorities, and policy makers.