Effect of Emotional Intelligence and trust on Bank performance (Evidence SME’s in Indonesia)

Abstract

This study aims to analyze trust in the relationship between staff and customers in the banking sector, its influence on financial performance in the level of emotional intelligence (EI) and their trust. Respondents were asked to complete EI tests and questions related to trust behavior. Exploratory factor analysis and confirmatory factor analysis and correlation analysis are used to identify relationships. Trust's findings are known to consist of three components: trustworthy; knowledge; and expectations. Furthermore, there is a significant correlation between trust and EI, when compared to the financial performance of relationship managers. Research weaknesses/ implications The method used by banks in collecting performance data limits the analysis that can be held. Practical implications increasing relationship manager awareness of their own emotions, and how they perceive and act on the emotions of others, will positively influence financial performance.