Towards financial inclusion: Trust in banks' payment services among groups at risk

Using unique payment diary survey data, this paper analyses trust in the Dutch payment system (broad-scope trust) and trust in the payment services of customers’ own bank (narrow-scope trust) among several customer groups at risk of being financially excluded due to the ongoing digitalisation. We specifically research people who have low digital skills, face financial challenges, or have a disability. Our results suggest that respondents with low digital skills or those who experience financial difficulties have below-average levels of both broad-scope and narrow-scope trust. Among people who have difficulty walking or are wheelchair-bound we find a significant positive effect on broad-scope trust in the payment system, while blind or visually impaired people and people with limited or no hand function are less likely to have trust in the payment system compared to people who do not belong to one of these groups. Among those who fall in a group at risk due to a physical disability, we only uncover a significant negative effect on narrow-scope trust for people who are blind or with a visual impairment. Respondents with little broad-scope trust report various reasons for their lack of trust, such as dissatisfaction with banks’ policies and the cost of bank services, interruptions in the payment system, and the ongoing digitalisation of payment services. Our findings underscore the importance of cultivating an accessible and inclusive payment system to increase financial inclusion from a trust-centred perspective.