Factors affecting trust in relationships within bank branches in India
The purpose of this paper is to investigate the impact of seven trust factors- similarity, knowledge, benevolence, behavioural integrity, behavioural consistency, communication and culture on the relationship between branch manager and loan officers of bank branches in India. Current literature on trust in banking focuses on the trust between bank and customer. This paper fills an important gap in the literature as it seeks to examine relationships within banks and their likely impact on lending management of bank branches. This paper tested the effect of trust factors by collecting data from eight bank branches in India used as cases in this study. A cross case qualitative analysis was performed using pattern matching technique. The findings in this research demonstrate that seven factors of trust mentioned above are instrumental in trust building between branch managers and loan officers. The effect of culture on business relationship between branch manager and loan officer was found to be significant and suggests that cultural issues influence the way in which banks are managed in India. The results in this paper demonstrate how relationship between branch manager and loan officers influence the way in which lending decisions are taken in bank branches in India and contribute to the lending management of bank branches.