Advertisement
Published in:
2016 | OriginalPaper | Chapter
Confidence and Trust
Author : W. Fred van Raaij
Published in: Understanding Consumer Financial Behavior
Publisher: Palgrave Macmillan US
Activate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
Confidence and trust are crucial for the functioning of the economy. Spending, saving, borrowing, investing, all depend on the confidence consumers have in the future economy, their personal finances, and on the trust they have in financial institutions such as banks, insurance and credit-card companies, investment and pension funds. Trust is also needed because the quality of many financial services cannot be inspected at purchase, but may become apparent years later. Without trust, transaction partners and society as a whole have to resort to legal enforcement of contracts, and this is a second-best alternative.