Consumer’s initial trust formation in IOB’s acceptance

Abstract

Purpose The purpose of this paper is to explore how variables like propensity to trust, website usability, social influence, customer awareness about internet-only banks (IOBs) and perceived compatibility influence customers’ initial trust formation toward IOBs’ acceptance. The model is based on the technology acceptance model, diffusion of innovation theory and theory of reasoned action. Design/methodology/approach A non-probability convenience sample of 239 IOBs’ potential adopters from France was used to test the structural equation model between initial trust antecedents and IOB’s usage intention. Findings Findings confirm the important role of trust in initiating customers’ relationship with IOBs and show that social influence, compatibility and website usability contribute the most to IOB’s initial trust formation. Indeed, it has been found that the level of consumer information about IOBs and propensity to trust have a moderate impact on consumer’s initial trust. Results revealed that there is a general lack of consumer’s awareness about IOB’s services features. Practical implications To promote the trustworthiness of their sites and services to potential consumers, IOBs should enhance WOM by using social network applications. IOBs need to develop marketing communication campaigns in which they can educate potential customers about IOB’s features. In addition, IOBs should demonstrate to their customers that IOBs’ banking system is consistent with their current lifestyle. IOBs are encouraged to develop a favorable impression by investing heavily on their website usability and information design. Originality/value This study contributes significantly to the marketing research literature related to consumer trust and electronic banking literature. Indeed, only a few marketing studies have been conducted about IOBs. The results show the role played by initial trust formation in the case of IOBs. In addition, it points out the importance of five trust cues: individual cues, knowledge cues, institutional cues, cognitive cues and social cues (social influence).

Determinants factors of intention to adopt big data analytics in Malaysian public agencies

“…The first category relates to individual personality traits such as the propensity to trust that represents the individual's natural inner potential. In the preceding analysis, a good predictor for initial trust is trust propensity (Kaabachi, Mrad & O'Leary, 2019). The personal inclination directly affects initial trust, which is supported by Heidari, Moosakhani, Alborzi, Divandari and Radfar's (2018) findings.…”

“…Trust typically consists of three convictions: ability, integrity and generosity (Zhou, 2013). Confidentiality has been shown to have profound consequences for the use by users in a range of services, including Online Health Consultation Services (Gong, Han, Li, Yu & Reinhardt, 2019), online banking (Kaabachi et al 2019), social networking (Naqvi, Jiang, Miao & Naqvi, 2020), and public e-services (Alabdallat, 2020).…”

Behavioural Intention of Commercial Banks’ Customers towards Financial Technology Services

“…It is critically important factor in the financial services sector to improve customer long-term relationships. A reasonable explanation is that it could lower uncertainty or anxiety of the behaviour (Slade et al, 2015;Kaabachi et al, 2019) and facilitates transactions with customers (Kaabachi et al, 2019;Bongomin & Ntayi, 2019). Consumers believe that financial institutions are not behaving opportunistically at their expense when there is an opportunity.…”

“…Consumers believe that financial institutions are not behaving opportunistically at their expense when there is an opportunity. Banks should keep its acts and promises in accordance with procedures, outcomes and the agreed promises (Kaabachi et al, 2019). Thus, trust is a vital predictor for the adoption of e-banking services or online banking (Kaabachi et al, 2019;Usman et al, 2020).…”

“…More specifically, consumers feel unsafe and do not trust in using internetonly banks particularly in the uncertainty of deploying an open technological infrastructure which is connected to the financial transactions as well as the spatial and distant nature of online environment. In building trust, social influence is the main influencer which derived from colleagues, family members and peers' advice (Kaabachi, Mrad & O'Leary, 2019). If there are security threat/fraud and even troubles found in FinTech, social groups will impact individuals to not use FinTech services.…”