مجلة البحوث الاقتصادية والمالية
Volume 12, Numéro 1, Pages 796-816
2025-06-30

The Impact Of Banking Relationship Duration On Personal Trust: Evidence From The Algerian Banking Sector Using Structural Equation Modeling

Authors : Merazka Mohamed . Saadi Elkhansa .

Abstract

Trust is a fundamental pillar of the banking sector, shaping customers' financial decisions and strengthening their commitment. Interpersonal trust between customers and bank personnel is crucial in this regard. This study, using Structural Equation Modeling on survey data from Algerian bank customers examines the impact of the banking relationship’s duration on personal trust and whether relationship duration positively influences it. Results show that the first years are critical, with the strongest trust-building effect occurring between one and five years. However, a longer relationship does not always lead to higher trust. This suggests that banks must adopt tailored strategies to sustain customer trust over time.

Keywords

Interpersonal trust; Banking relationship duration; Customer retention; Algerian banking sector; Structural equation modeling.