Financial inclusion and bank growth: the moderating role of customer trust

Although previous studies demonstrate a positive link between financial inclusion and bank performance, the specific conditions under which financial inclusion leads to bank growth remain poorly theorised and empirically untested, particularly in emerging economies. In particular, there is limited evidence on whether customer trust moderates the relationship between financial inclusion and bank growth, either strengthening or weakening it. To address this gap, this study investigates the direct impact of financial inclusion on bank growth and examines the moderating role of customer trust within the Ghanaian banking sector. Rooted in the technology acceptance model (TAM), trust theory, and financial intermediation theory, the study views customer trust as a strategic relational resource that boosts the benefits of inclusive financial practices for growth. Data were collected through structured questionnaires distributed to employees of selected banks in Ghana who were also active customers of their respective institutions, allowing respondents to provide assessments based on both their professional knowledge of banking operations and their personal experience as customers. A total of 340 questionnaires were distributed, of which 311 were successfully retrieved and deemed suitable for the analysis. The proposed model was analysed using partial least squares structural equation modelling (PLS-SEM) in SmartPLS 4, with bootstrapping (5000 resamples) to test the significance of paths and interaction effects. The findings reveal that financial inclusion has a positive and significant association with bank growth. Customer trust is not only directly associated with bank growth but also significantly moderates the relationship between inclusion and bank growth, strengthening this association. These results extend the literature on financial inclusion by highlighting customer trust as a vital boundary condition and by offering managerial insights into employing trust-building strategies to foster sustainable bank growth in emerging markets.