ABSTRACT
This chapter explores the loss of trust in universal banks during the Global Financial Crisis (GFC). The nature of trust violations by universal banks are examined along with a survey of research on the topic of trust in financial services in general and a presentation of some of the data on the loss of trust in banks. Some of the competing narratives for explaining the loss of trust in banks are reviewed and an argument is made that our failure to fully understand this phenomenon may have to do with an inadequate comprehension of how organizational trust is eroded over time as banks adapted to challenges in their environment. Further, the chapter considers the idea that one of the reasons that trust violations seem to continue unabated is that we have yet to fully understand the subtle and slippery slope of organizational dynamics that produces trust violations. Suggestions are made for improving our understanding of trust in banks and in improving trustworthiness going forward.
