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Translating Financial Complexity into Client Trust: A Conceptual Model for Customer-Centered Communication in Retail and Private Banking

Priscilla Amerley Nortey, Steve Senyo Ayivi-Donkor

Abstract

Retail and private banking institutions increasingly compete on the quality of the client relationship rather than on product features alone, yet the technical complexity of contemporary financial offerings continues to widen the gap between what institutions know and what clients understand. This paper develops a conceptual model, termed Customer-Centered Financial Communication , that explains how the deliberate translation of financial complexity into accessible, transparent, and personalized communication shapes client trust and, in turn, relational outcomes such as loyalty, share of wallet, and advocacy. Drawing on the integrative model of organizational trust, commitment-trust theory, service quality research, and the financial literacy literature, the model specifies three classes of antecedents (objective complexity, information asymmetry, and client financial literacy), a set of communication levers (clarity, transparency, personalization, advisor competence signaling, and responsiveness), and two cognitive and affective mediating pathways through which these levers operate. The model is then differentiated across the retail and private banking contexts, where channel structure, advisory intensity, and client sophistication alter the relative weight of each lever. Seven propositions are advanced to guide empirical testing, and managerial implications for communication design, advisor training, and disclosure practice are discussed. The paper contributes a parsimonious, testable account of how communication choices convert a structural disadvantage, namely complexity, into a relational asset, namely trust.

Keywords

financial communicationclient trustcustomer centricityretail bankingprivate bankingrelationship marketingfinancial literacy

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