How to Determine a Credible Institution

• What is credibility and why is it important?
• How do we ensure credibility?

Introduction:

An important part of the accuracy of the decision that an investor or trader can make is related to the credibility of the institutions or entities that have a relationship with that decision, whether they provide the trading service, or those that provide related services such as education or analysis, and other services, as credibility reflects the extent to which any institution is worthy of trust and commitment to the promises it makes.

Indeed, the credibility of institutions in providing what they promise is a factor in the progress of society as a whole and enabling it to achieve its goals, and thus achieving the economic renaissance of any country that can embrace the largest number of institutions that enjoy a high level of credibility.

Therefore, this article will explain the concept of credibility and its importance, in addition to trying to explore the different ways to determine whether an institution is credible, highlighting the criteria that must be considered, and the tools available to search for that institution.

What is credibility and why is it important?

IGI Global Scientific Publishing defines “credibility” as “the quality of trust, respect, and belief, which measures the degree of reliance on a person, source, or information,” while the Cambridge Dictionary describes it as “the quality of a person or entity that emphasizes the degree of trust and honesty, with tangible evidence of that.”

Although there are several definitions of the term credibility, its essence in general indicates that the entity that describes itself as credible has a high degree of integrity, that it means and implements what it says, and/or that it has a deep base of real knowledge about what it promises to provide, and that this entity is able to support its customers’ decisions through its real expertise and skills that it can prove with tangible evidence and not just words.

Accordingly, building credibility is of utmost importance to the organization, its customers, and the economy in general. In fact, maintaining and developing credibility contributes to achieving many things, most notably:

• Attracting customers and enhancing their loyalty in a highly competitive environment.

• Differentiating from competitors in a way that benefits customers.

• Increase confidence in the product or service being offered in general.

• Contribute to reducing the noise that can affect the decision of the investor or trader.

• Increase the level of experience of the investor or trader in the work environment provided by highly credible companies.

How do we ensure credibility?

To assess the credibility of an institution, financial broker or entity, one must first identify the key elements that establish credibility. The following are the most important of these elements:

1. Consistency and consistency in actions and words:

It is important for an institution or entity to provide shiny promises about the products or services it provides, but the most important thing lies in linking those promises to what it provides on the ground, whether during implementation, or in post-implementation services and effective and continuous communication.

This element can be examined through several procedures, most notably reviewing the reviews available about the company through various means and channels, whether official or unofficial (for example, unpaid/funded news about the company, such as those that refer to its achievements and societal role), and if the company has previous years of experience, its business results, public reports, or what is published about it in channels specialized in its field can be reviewed.

2. Experience:

A company or entity having good experience in its field goes a long way in building credibility, through having a professional staff and building or adopting advanced systems and advanced work procedures.

This element can be investigated through direct communication with the company and visiting it, examining its certificates, or conducting one or more interviews with its staff to learn about their experiences through answers to specialized questions in the company's field of work, which also allows verifying the work procedures followed within the company and the extent of professionalism in preparing, implementing, and following up on them.

3. Transparency and clarity:

This element reflects the extent of the company or entity's openness to the public, and the company's definition of all related information, achievements and activities on a regular and permanent basis, which increases the factor of trust in the company and trust in its products or services.

The trader or investor can examine this element by following the company's news and advertisements and examining the news periodicity (the periodicity here means that the institution or entity announces its news consecutively and not intermittently or old and not updated).

4. Customer opinions and testimonials:

Questions about the institution and reading its customers' reviews enhance trust and the feeling of credibility, as they provide social evidence of the trust that customers show in that institution or entity.

5. Ethical practices:

The institution's undertaking of social responsibility enhances customers' trust in the company's ethical behavior towards the society in which the company practices its business, so that all of this is positively reflected in the credibility of the company and increases trust in its role in general.

6. Real Advertisements:

Advertising is the most prominent means of communication between any institution and its audience, whether actual or potential, but the advertisement is distinguished by specific characteristics that may help them in forming or enhancing the credibility of the entity that issued the advertisement.

The extent of the truthfulness of the advertising material and the language used in it can be verified by reviewing the articles of "Transparency Trading+", such as "Discovering Unrealistic Advertisements" and "Misleading Marketing Tactics".

7. Continuous Development:

The development of any institution or entity of its tools and work methodology, in addition to developing the capabilities of its employees, increases credibility and even enhances it in the eyes of the audience, who can, through this element, keep up with the rapid developments surrounding the world of money and business.

Conclusion:

Determining an organization’s credibility is crucial for any investor or trader seeking reliable services and information. Credibility goes beyond promises; it is about an organization’s ability to consistently deliver on its commitments with transparency and ethical integrity. By focusing on key factors such as consistency, expertise, transparency, customer feedback, and ethical practices, investors can make informed decisions and build long-term trust. In turn, credible organizations not only drive individual success but also contribute to broader economic growth. As industries evolve, maintaining credibility through continuous improvement is vital to staying competitive and trustworthy in a dynamic business environment.