Financial knowledge and trust in financial institutions

Based on analysis of 14 years data Dutch consumers' trust in financial institutions, we find that financially literate consumers are more likely to banks, insurance companies and pension funds. This result applies both broad-scope (trust institutions general) narrow-scope one's own institution). Our conclusion holds when use a literacy proxy based self-assessed knowledge or actual knowledge. For all types researched, is significantly higher than trust, but forms positively related. Financially knowledgeable people managers have the prudential supervisory authority. Finally, our results suggest authority correlates with sector.