Essential Factors for Developing Private Bank Trust in Myanmar
Keywords:
Bank trust, Private bank, Financial service, Banking service, MyanmarAbstract
This paper attempts to identify essential factors for developing private bank trust, especially in Myanmar. In this study, the research model is based on two concepts, customers’ experience (service quality, customer satisfaction, bank reputation) and social behavior (social pressure, positive recommendation, traditional indifference). A quantitative research approach is used and a total of 308 customers of private banks in Myanmar participated in this research. Partially exploratory factor analysis (EFA), partially confirmatory factor analysis (CFA), and structural equation modeling (SEM) techniques are employed to analyze the collected data and formulate the results. The findings indicated that service quality is a crucial antecedent and has positive direct effects on social pressure, customer satisfaction, bank reputation, and bank trust. The results also confirmed that bank trust is positively influenced by bank reputation and positive recommendation. Further, traditional indifference has an insignificant direct effect on bank trust and customer satisfaction. An emergence of finalized research model based on the findings and results of this study is one of the contributions for future studies in similar context. In addition, this study extends the knowledge and insight for not only old private banks but also newly established private banks in Myanmar to improve and maintain their customers’ trust.
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