The Model of Customer Trust for Internet Banking Adoption

The use of the Internet has increased dramatically over recent years and is now regarded as the best channel for distribution of products and services of various types of businesses, such as internet banking services. This paper extends an area of information systems research into a financial services context by looking into the element of trust in Internet banking. As more financial institutions are currently seeking ways to boost Internet banking adoption rates, trust is also being examined as a significant issue in the relationship. This can be attributed to the fact that bank customers are concerned about the security involved in processing such sensitive material as financial information. Moreover, significant factors of trust are involved and these include: accessibility, privacy, security, quality, usability, users knowledge and disposition to trust. These can all have an impact on customer trust in adopting internet banking. Based on previous models with aforementioned variables that are theoretically justified as having an influence on trust, a relevant research model was developed to test eight (8) hypothesized paths among the study variables. These include, namely: accessibility, privacy, security, quality, usability, users knowledge, disposition to trust, trust, as well as the rate of internet banking adoption. Data was collected by survey questionnaires from a sample of 150 internet banking users. The Smart PLS tool was used for data analysis. The results of the data analysis generally support the model, as well as all of the proposed hypotheses. In summary, the results of this research have shown that accessibility, privacy, security, quality, usability, users knowledge and disposition to trust were found to have significant influenceon customer trust. Trust, in turn, was found to be an important factor in fostering a positive attitude toward adopting the services. Several implications for both research and practice have emerged and are discussed later in this study.