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The modertaing role of perceived risk on trust in e-banking
Working paper   Open access

The modertaing role of perceived risk on trust in e-banking

D. Wong, C. Loh, K. Yap and R. Bak
Marketing Insights. Working Paper Series. School of Marketing, Curtin Business School. School of Marketing
2009
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Abstract

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. 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.

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