To trust or not to trust: the consumer’s dilemma with e-banking

The purpose of this research is to investigate whether a consumer’s perception of risk in transacting on the internet (Perceived Risk) would have an influence on their trust of a bank’s e-banking website (Specific Trust) and their willingness to use e-banking. Data were collected from a survey and a usable sample of 202 was obtained. Hierarchical moderated regression analysis was used to test the model. The results showed that Perceived Risk has a direct influence on a consumer’s willingness to use e-banking and Specific Trust has a positive moderating influence on the relationship between Perceived Risk and a consumer’s willingness to use e-banking. Consumers who have low perceived risk of transacting on the internet are generally more willing to use e-banking. Their willingness to use e-banking was also shown to be more pronounced in cases where the consumer also trust their bank’s e-banking website. These findings are of particular relevance to banks. It highlights that a consumer’s willingness to use e-banking primarily depends on their perception of risk in transacting on the internet; trust of the specific e-banking website was secondary. This suggests the need for banks to not only employ mechanisms to build trust for their specific e-banking website, but that banks should first take measures to educate their customers and manage general consumer perceptions of the risks of transacting on the internet.

[1]  J. Mazzon,et al.  Adoption of internet banking: proposition and implementation of an integrated methodology approach , 2007 .

[2]  J. H. Davis,et al.  An Integrative Model Of Organizational Trust , 1995 .

[3]  C. Flavián,et al.  How bricks‐and‐mortar attributes affect online banking adoption , 2006 .

[4]  Fotini Nteli,et al.  Internet banking in the UK: Why are there not more customers? , 2004 .

[5]  Janet Morahan-Martin,et al.  Women and the Internet: Promise and Perils , 2000, Cyberpsychology Behav. Soc. Netw..

[6]  D. Littler,et al.  Consumer perceptions of risk and uncertainty and the implications for behaviour towards innovative retail services: The case of Internet Banking , 2006 .

[7]  Bala Shanmugam,et al.  Internet Banking: Boon or Bane ? , 2004 .

[8]  F. Reichheld,et al.  E-LOYALTY: YOUR SECRET WEAPON ON THE WEB , 2003 .

[9]  M. Raats,et al.  The role of consumers. , 2010, Nestle Nutrition workshop series. Paediatric programme.

[10]  Li-Wei Wu,et al.  Customer retention and cross-buying in the banking industry: An integration of service attributes, satisfaction and trust , 2007 .

[11]  David Gefen,et al.  Reflections on the dimensions of trust and trustworthiness among online consumers , 2002, Data Base.

[12]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[13]  M. Strube,et al.  Community Banks Go Online , 2000 .

[14]  Joseph P. Cannon,et al.  An Examination of the Nature of Trust in Buyer–Seller Relationships: , 1997 .

[15]  Sonja Grabner-Kraeuter.  The Role of Consumers' Trust in Online-Shopping , 2002 .

[16]  Sung-joon Yoon,et al.  The antecedents and consequences of trust in online-purchase decisions , 2002 .

[17]  Robert LaRose,et al.  Internet Self-Efficacy and the Psychology of the Digital Divide , 2006, J. Comput. Mediat. Commun..

[18]  Detmar W. Straub,et al.  Trust and TAM in Online Shopping: An Integrated Model , 2003, MIS Q..

[19]  Sonja Grabner-Kräuter,et al.  Consumer acceptance of internet banking: the influence of internet trust , 2008 .

[20]  Carlos Flavián,et al.  The role of security, privacy, usability and reputation in the development of online banking , 2007, Online Inf. Rev..

[21]  Ellen Garbarino,et al.  GENDER DIFFERENCES IN THE PERCEIVED RISK OF BUYING ONLINE AND THE EFFECTS OF RECEIVING A SITE RECOMMENDATION , 2004 .

[22]  GefenDavid.  Reflections on the dimensions of trust and trustworthiness among online consumers , 2002 .

[23]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[24]  Gurpreet Dhillon,et al.  Interpreting Dimensions of Consumer Trust in E-Commerce , 2003, Inf. Technol. Manag..

[25]  Kent Eriksson,et al.  The adoption of commercial innovations in the former Central and Eastern European markets : The case of internet banking in Estonia , 2008 .

[26]  James H. Gerlach,et al.  Perceived risk and e-banking services: An analysis from the perspective of the consumer , 2005 .

[27]  Paul A. Pavlou,et al.  Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model , 2003, Int. J. Electron. Commer..

[28]  Tibert Verhagen,et al.  Perceived risk and trust associated with purchasing at electronic marketplaces , 2006, Eur. J. Inf. Syst..

[29]  Norman L. Chervany,et al.  What Trust Means in E-Commerce Customer Relationships: An Interdisciplinary Conceptual Typology , 2001, Int. J. Electron. Commer..

[30]  A. Göritz,et al.  Perceived trustworthiness of online shops , 2008 .

[31]  Chang Liu,et al.  Beyond concern - a privacy-trust-behavioral intention model of electronic commerce , 2004, Information Manager (The).

[32]  Russel P. J. Kingshott,et al.  The impact of the relational plan on adoption of electronic banking , 2003 .

[33]  Katherine J. Stewart,et al.  Transference as a means of building trust in World Wide Web sites , 1999, ICIS.

[34]  H. Marmorstein,et al.  Marketing online banking services: The voice of the customer , 2003 .

[35]  I. Ajzen,et al.  Understanding Attitudes and Predicting Social Behavior , 1980 .

[36]  J. Pearson,et al.  Effect of trust on consumer acceptance of internet banking , 2007 .

[37]  James F. Devlin,et al.  Why consumers are not using internet banking: a qualitative study , 2006 .

[38]  J. Asher.  Small Business: Suddenly Everyone Wants a Piece of It , 1999 .

[39]  Norizan M. Kassim,et al.  The influence of attraction on internet banking: an extension to the trust‐relationship commitment model , 2006 .

[40]  M. Goode,et al.  Perceived risk and Chinese consumers' internet banking services adoption , 2008 .

[41]  Vincent S. Lai,et al.  Literature derived reference models for the adoption of online shopping , 2005, Inf. Manag..

[42]  M. Speece,et al.  Barriers to Internet banking adoption: a qualitative study among corporate customers in Thailand , 2003 .

[43]  Donna L. Hoffman,et al.  Building consumer trust online , 1999, CACM.

[44]  M. Sathye.  Adoption of Internet banking by Australian consumers: an empirical investigation , 1999 .

[45]  Ann E. Schlosser,et al.  Converting Web Site Visitors into Buyers: How Web Site Investment Increases Consumer Trusting Beliefs and Online Purchase Intentions , 2006 .

[46]  Magid Igbaria,et al.  Information systems continuance intention of web-based applications customers: The case of online banking , 2008, Inf. Manag..

[47]  Sirkka L. Jarvenpaa,et al.  Consumer trust in an Internet store , 2000, Inf. Technol. Manag..

[48]  H. Raghav Rao,et al.  Consumer-perceived risk in e-commerce transactions , 2003, CACM.

[49]  P. Nath,et al.  A model of trust in online relationship banking , 2003 .

[50]  S. Wolfe,et al.  Internet banking market performance: Turkey versus the UK , 2007 .

[51]  Pin Luarn,et al.  AIS Electronic Library (AISeL) , 2017 .

[52]  K. Williamson,et al.  Understanding Consumer Adoption of Internet Banking: An Interpretive Study in the Australian Banking Context , 2006 .