This study examines racial and ethnic disparities in trust toward financial institutions, a critical but underexplored factor shaping financial inclusion and consumer well-being. Using nationally representative Financial Health Pulse data, we analyze overall trust and four key dimensions: whether institutions can keep deposits safe, provide good financial advice, are honest and transparent about costs and fees, and want to help improve customers’ finances. We find that while 61% of Americans trust financial institutions somewhat or completely, trust levels differ sharply by race and ethnicity. Around two-thirds of Asian and white consumers report trust, compared with about half of Black and Latine consumers, who are also more likely to feel ambivalent. Asian respondents report similar overall trust to white respondents but lower affective trust — they have more confidence in what financial institutions can do than in whether they genuinely want to help. These gaps matter because trust influences how consumers engage with banks, build savings, and access safe credit. By highlighting where trust breaks down, this study offers insight to improve equity, strengthen confidence in financial institutions, and support consumer and family economic well-being.

Accepted Oral Presentation