Understanding dynamics between initial trust and usage intentions of mobile banking

Mobile banking is an emerging application of mobile commerce that could become an additional revenue source to both banks and telecom service providers. It is a form of service convergence enabled by innovative technologies. Despite the alleged benefits of mobile banking, its acceptance has been short of industry expectations. One plausible explanation may be consumers' initial lack of trust in available services. The objective of our research is to reveal the mechanisms associated with the initial formation of people's trust in mobile banking and intention to use the service. For this, we attempt to understand the effect of four antecedent variables (structural assurances, relative benefits, personal propensity to trust and firm reputation) on shaping a person's initial trust in mobile banking and its usage intention. They represent four types of trust-inducing forces: institutional offering (structural assurances), cognition (perceived benefits), personality (personal propensity) and firm characteristics (firm reputation). We examine individual significance of the selected antecedents and also their comparative reliability in explaining the two exogenous variables. The technical basis of our empirical research is the innovative mobile banking solution that uses cellphones with a built-in smart chipset. The survey data are analyzed using structural equation modelling. The analysis showed that three variables (relative benefits, propensity to trust and structural assurances) had a significant effect on initial trust in mobile banking. Also, the perception of initial trust and relative benefits was vital in promoting personal intention to make use of related services. However, contrary to our expectation, the reputation as a firm characteristics variable failed to attract people to mobile banking.