SpringerLink
Log in

Determinants of Trust, Security, Privacy and Risk Factors in Embracing Online Banking

  • Chapter
  • First Online:
Financial Inclusion in Emerging Markets

  • 550 Accesses

Abstract

Online banking is nerve center of a nation which helps to achieve the objectives of a country. Banks provide E-banking services to the customer through telephone lines and computer channels. Banking activities have shifted to new paradigm with the demand in various services in the banking industry with the urge of globalization. The evolution of online banking activities in the industry has attained new heights with the competitive environment. It is the need of the hour that technology is fundamental requirement for everyone in financial sector. A survey has been conducted to find the determinants of trust, security, privacy and risk factors in adoption of online banking services around Muscat City. A pilot study was conducted to verify the reliability and validity of the questions included in the research instrument, to ensure the scale development of the questions and to ensure internal consistency. PLS-SEM v 3.0 has been used to evaluate the conceptual model and to test the speculated hypothesis on the determinants of trust, security, privacy and risk factors in adoption of online banking services. The study concluded that customer’s trust factors and risk factors while using online banking services have significant positive relationship in adoption of online banking services and at the same time privacy factors and security factors have insignificant relationship with weak and negative impact in adoption of online banking services.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 119.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 159.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free ship** worldwide - see info
Hardcover Book
USD 159.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free ship** worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  • Afshan, S., & Sharif, A. (2016). Acceptance of mobile banking framework in Pakistan. Telematics and Informatics, 33(2), 370–387.

    Article  Google Scholar 

  • Ajzen, I. (1991). The theory of planned behavior. Organizational Behaviour and Human Decision Process, Scientific Research, 50(2), 179–211.

    Article  Google Scholar 

  • Akhlaq, A.‚ & Ahmed, E. (2013). The effect of motivation on trust in the acceptance of internet banking in a low income country. International Journal of Bank Marketing, 32(2), 15–125.

    Google Scholar 

  • Akhlaq, M. A., & Shah, A. (2011). Internet banking in Pakistan: Finding complexities. Journal of Internet Banking and Commerce, 16(1), 1–14.

    Google Scholar 

  • Alsajjan, B., & Dennis, C. (2010). Internet banking acceptance model: Cross market examination. Journal of Business Research, Advances in Internet Consumer Behaviour and Marketing Strategy, 63(9), 959–963.

    Google Scholar 

  • Al Sharafi, M., Arshah, R. A., Herzallah, F. A. T., & Abu Shanab, E. A. (2018). The impact of customer trust and perception of security and privacy on the acceptance of online banking services. Structural Equation Modeling Approach, 4(1), 1–14.

    Google Scholar 

  • Barclay, D., Thompson, R., & Dan Higgins, C. (1995). The partial least square approach to causal modeling: Personal computer adoption and use an illustration. Technology Studies, 14(2), 189–217.

    Google Scholar 

  • Bauer, R. (1960). Consumer behavior as risk taking, in dynamic marketing for a changing world. American Marketing Association, 1(1), 389–398.

    Google Scholar 

  • Benbasat, M. S., Gefen, D., Leimeister, J. M., & Pavlou, P. A. (2016). Trust: An MIS. Quarterly Research, 34(2), 361–371.

    Google Scholar 

  • Bhatnagar, A., Misra, S., & Rao, H. R. (2000). On risk, convenience and internet shop** behavior. Communication of the ACM, 43(1), 98–105.

    Google Scholar 

  • Brack, K. (2000). E procurement: The next frontier. Industrial Distribution, 89(1), 65–70.

    Google Scholar 

  • Chai, B.-H., Tan, P. S., & Goh, T. S. (2015). Banking Services that influence the bank performance. Social and Behavioral Sciences, 224(1), 401–407.

    Google Scholar 

  • Chan, S., & Lu, M. T. (2004). Understanding internet banking adoption and use behavior: A Hong Kong perspective. Journal of Global Information Management, 12(3), 21–43.

    Article  Google Scholar 

  • Chen, F. F. (2007). Sensitivity of goodness of fit indexes to lack of measurement invariance. Structural Equation Model, 14(3), 464–504.

    Article  Google Scholar 

  • Chin, W. W. (1998). The partial least squares approach for structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods for business research. Lawrence Erlbaum Associates Publishers (vol. 1, issue no. 1, pp. 295–336).

    Google Scholar 

  • Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/correlation analysis for the behavioral sciences (3rd ed., pp. 147–151). Lawrence Erlbaum associates publishers.

    Google Scholar 

  • Crabbe, M., Standing, C., Standing, S., & Karjaluoto, H. (2009). An adoption model for mobile banking in Ghana. International Journal of Journal of Mobile Communications, 7(5), 515–543.

    Google Scholar 

  • Davis, F. D. (1986). A technology acceptance model for empirically testing new end-user information system: Theory and results. Sloan School of Management, Massachusetts Institute of Technology, 13(3), 319–340.

    Google Scholar 

  • Enrique, B. D., Elena, C. T., & Tomas Escobar, R. (2015). Influence of trust and perceived value on the intention to purchase travel online: Integrating the effects of assurance on trust antecedents. Tourism Management, 47(1), 286–302.

    Google Scholar 

  • Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behavior: An introduction to theory and research. Addison Wesley, 27(1), 41–57.

    Google Scholar 

  • Featherman, M. (2001). Is perceived risk germane to technology acceptance research? AMCIS Proceedings, Boston, MA, 1(1), 1–5.

    Google Scholar 

  • Flavian, C., Guinaliu, M., & Gurrea, R. (2006). The role played by perceived usability, satisfaction and consumer trust on website loyalty. Information & Management, 43(1), 1–14.

    Google Scholar 

  • Fornell, C., & Lrcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Article  Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics, (vol. 18, issue no. 3, pp. 1–5).

    Google Scholar 

  • Ganesan, R., & Vivekanandan, K. (2009). A secured hybrid architecture model for internet banking. Journal of Internet Banking and Commerce, 8(12), 415–418.

    Google Scholar 

  • Gefen, D. (2000). Structural equation modeling and regression: Guidelines for research practice. Structural Equation Model, 18(2), 7–34.

    Google Scholar 

  • Gerrard, P., & Cunningham, J. B. (2003). The diffusion of internet banking among Singapore consumers. International Journal of Bank Marketing, 21(1), 16–28.

    Google Scholar 

  • Gerrard, P., Cunningham, J. B., & Devlin, J. F. (2006). Why consumers are not using internet banking: A qualitative study. Journal of Services Marketing, 20(3), 161.

    Article  Google Scholar 

  • Ghaziri, H. (1998). Information technology in the banking sector: Opportunities, threats strategies. IT Banking, 98(2), 175–212.

    Google Scholar 

  • Goudarzi, S. (2013). Impact of trust on internet banking adoption: A literature review. Australian Journal of Basic and applied Sciences, 7(7), 334–347.

    Google Scholar 

  • Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152.

    Article  Google Scholar 

  • Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in in marketing research. Journal of Academic Marketing Sciences, 40(1), 414–433.

    Article  Google Scholar 

  • Hernandez-Ortega, B. (2011). The role of post use trust in the acceptance of a technology: Drivers and consequences. Technovations, 31(10), 523–538.

    Article  Google Scholar 

  • Hui Ling, C., Islam, M. A., Abdul Manaf, A. H., & Wan Mustafa, W. M. (2015). Users satisfaction towards online banking in Malaysia. International Business Management, 9(1), 15–27.

    Google Scholar 

  • Jarvenpaa, S., & Tractinsky, N. (1999). Consumer trust in an internet store: A cross-cultural validation. Journal of Computer Mediated Communication, 5(2), 1–35.

    Google Scholar 

  • Juwaheer, T., Pudaruth, S., & Lee, M.c. (2009). Factors influencing the adoption of internet banking: An integration of TAM and TPB with perceived risk and perceived benefit. Electronic Commerce Research and Application, 8(3), 130–141.

    Google Scholar 

  • Kalakota‚ R.‚ & Whinston, A. B. (1996). Frontiers of electronic commerce. Addison-Wesley Publishing Company, 96(41134), 1–5.

    Google Scholar 

  • Kim, D. J., Steinfield, C., & Lai, Y. (2008). Revising the role of web assurance seals in business to consumer electronic commerce. Decision Support Systems, 44(4), 1000–1015.

    Article  Google Scholar 

  • Kim, K., Prabhakar, B.‚ & Park, S. (2009). Trust, perceived risk, and trusting behavior in internet banking. Asia Pacific Journal of Information Systems, 19(3), 3–1.

    Google Scholar 

  • Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1–10.

    Article  Google Scholar 

  • Kolsaker, A., Lee-Kelley, L.‚ & Choy, P. C. (2004). The reluctant hong kong consumer: Purchasing travel online. International Journal of Consumer Studies, 28(3), 295–304.

    Google Scholar 

  • Kumar, M., Sareen, S., & Barquissau, E. (2017). Relationship between types of trust and level of adoption of internet banking. Problems and Prospective in Management, 10(1), 82–92.

    Google Scholar 

  • Lafraxo, Y., Hadri, F., Amhal, H., & Rossafi, A. (2019). The effect of trust, perceived risk and security on the adoption of mobile banking in Morocco. 20th International Conference on Enterprise Information Systems, 2(1), 497–502.

    Google Scholar 

  • Lazuras, Kurila, J. L., & Ketikidis, P. H. (2016). Message framing and acceptance of branchless banking technology. Electronic Commerce Research and Applications, 17(1),12–18.

    Google Scholar 

  • Lee, M. C. (2009). Factors influencing the adoption of internet banking: An integration of TAM and TPB with perceived risk and perceived benefit. Electronic Commerce Research and Applications, 8(3), 130–141.

    Article  Google Scholar 

  • Lehman, A., O’Rourke, N., Hatcher, L., & Stepanski, E. (2013). JMP for basic Univariate and Multivariate statistics: Methods for researchers and social scientists. SAS Institute, 2(2), 412–417.

    Google Scholar 

  • Liao, Z., & Cheung, M. T. (2001). Internet-based e-shop** and consumer attitudes an empirical study. Information & Management, 38(5), 299–306.

    Google Scholar 

  • Lumb, R. (2019). Bridging the technology gap in financial boardrooms. Accenture Strategy, 1(1), 1–10.

    Google Scholar 

  • McKnight, H. D., & Chervany, N. L. (2014). What trust means in e-commerce customer relationships: An interdisciplinary conceptual typology. International Journal of Electronic Commerce, 6(2), 35–59.

    Article  Google Scholar 

  • Mukti, N. (2000). Barriers to putting businesses on the internet in Malaysia. The Electronic Journal of Information Systems in Develo** Countries, 2(6), 1–4.

    Article  Google Scholar 

  • Myung, J. K., Namho C., & Choong, K. L. (2011). The effect of perceived trust on electronic commerce: Shop** online for tourism products and services in South Korea. Tourism Management, 32(1), 256–265.

    Google Scholar 

  • Park, J., Lee, D.‚ & Ahn, J. (2004). Risk-focused e-commerce adoption model: A cross-country study. Journal of Global Information Management, 7(1), 6–30.

    Google Scholar 

  • Pavlou, P. (2001). Integrating trust in electronic commerce with the technology acceptance model: Model development and validation. Conference Proceedings, Americas Conference on Information Systems. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.859.567&rep=rep1&type=pdf.

  • Pavlou, P. A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 7(3), 101–134.

    Google Scholar 

  • Poole, W. (2003). Housing in the macroeconomy. Federal Reserve Bank of St. Louis Review, 85(3), 1–8.

    Google Scholar 

  • Rahi, S., Mansour, M. M. O., Alghizzawai, M., & Alnaser, F. M. (2019). Integration of UTAUT model in internet banking adoption context. Journal of Research in Interactive Marketing, 13(3), 411–435.

    Article  Google Scholar 

  • Ringle, C. M., Sarstedt, M., & Mooi, E. A. (2010). Response based segmentation using finite mixture partial least squares theoretical foundations and an application to American Customer satisfaction Index Data. Data Mining Annals of Information System, 8(1), 19–49.

    Article  Google Scholar 

  • Roberts, B. (2009). Stakeholder power in e-business adoption with a game theory perspective. Journal of Theoretical Applied Electronic Commerce Research, 4(1), 12–22.

    Article  Google Scholar 

  • Ruyter, Ko de., Wetzels, M., & Kleijnen, M. (2001). Customer adoption of e-service: An experimental study. International Journal of Service Industry Management, 12(2), 184–207.

    Google Scholar 

  • Stafford, B. (2001). Risk management and internet banking: What every banker needs to know community Banker. Research Gate Publications, 51(5), 935–965.

    Google Scholar 

  • Tabachnick, B., & Fidell, L. (1996). Using multivariate statistics (3rd ed., pp. 1–11). Harper Collins College Publications.

    Google Scholar 

  • Tarhini, A., El Masri, M., Ali, M., & Serrano, A. (2016). Extending the UTAUT model to understand the customer acceptance and use of internet banking in Lebanon: A structural equation modeling approach. Emerald Insight, 29(4), 830–834.

    Google Scholar 

  • Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research agenda on interventions. Journal of the Decision Sciences Institute, 39(2), 273–315.

    Article  Google Scholar 

  • Venkatesh, V., & Davis, F. D. (2000). A theoretical extension of the technology acceptance model: Four longitudinal field studies. Research Gate Publications, 46(2), 186–204.

    Google Scholar 

  • Venkatesh, V., James, Y., Thong, L., & **n, X. (2016). Unified theory of acceptance and use of technology: A synthesis and the road ahead. Journal of the Association for the Information System, 17(5), 328–376.

    Article  Google Scholar 

  • Walker, R. H., Hecker, R., Francis, H., & Craig Lees, M. (2002). An empirical investigation of Malaysia, technology enabled service delivery: An investigation of reasons affecting customer adoption and rejection. International Journal of Service Industry Management, 13(1), 91–106.

    Article  Google Scholar 

  • Williams, Michael-D., Rana, Nripendra-P., & Dwivedi, Y.-K. (2015). The unified theory of acceptance and use of technology (UTAUT): A literature review. Journal of Enterprise Information Management, 28(3), 433–488.

    Google Scholar 

  • Zhu, D. S., Chih Lee, Z., & O’Neal, G. S. (2011). Mr. Risk, Please trust me: Trust antecedents that increase online consumer purchase intention. Journal of Internet Banking and Commerce, 16(3), 1–23.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Higher College of Technology, University of Technology and Applied Sciences, Muscat, Sultanate of Oman

    M. Krishna Murthy

  2. Department of Business and Accounting, Muscat College, Muscat, Sultanate of Oman

    S. Varalakshmi

Authors
  1. M. Krishna Murthy
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. S. Varalakshmi
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to M. Krishna Murthy .

Editor information

Editors and Affiliations

  1. Department of Postgraduate Studies & Research, College of Banking & Financial Studies, Muscat, Oman

    Ananda S.

  2. Department of Finance, Accounting & Economics, Faculty of Business and Economics, Modern College of Business and Science, Muscat, Oman

    Dharmendra Singh

Rights and permissions

Reprints and permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Krishna Murthy, M., Varalakshmi, S. (2021). Determinants of Trust, Security, Privacy and Risk Factors in Embracing Online Banking. In: S., A., Singh, D. (eds) Financial Inclusion in Emerging Markets. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-16-2652-4_10

Download citation

  • DOI: https://doi.org/10.1007/978-981-16-2652-4_10

  • Published:

  • Publisher Name: Palgrave Macmillan, Singapore

  • Print ISBN: 978-981-16-2651-7

  • Online ISBN: 978-981-16-2652-4

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation