Understanding dynamics between initial trust and usage intentions of mobile banking

Abstract

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.

Technology readiness in a B2B online retail context: An examination of antecedents and outcomes

“…Research has found that industry trust plays a significant role in the adoption of innovative services such as web related technologies (Pavlou & Gefen, 2004;Kim et al, 2009;Li et al, 2011); this is most likely due to the uncertain nature of the online environment, reinforced by the lack of physical interaction and anonymity involved in the medium (Ratnasingam, 2005).…”

“…The role of industry trust is becoming increasingly important in online contexts (McKnight et al 2002;Pavlou & Gefen, 2004;Kim, Shin & Lee, 2009). Retailers newly adopting this channel as demand for online shopping increases need assurances from service providers about its viability and reliability.…”

Factors Affecting Re-usage Intentions of Virtual Communities Supporting Cosmetic Products

“…And as we have discussed in previous section, the influencing effects of effort expectancy and trust on VC re-usage intentions might become weak as members are familiar with a VC. However, Kim, Shin and Lee (2009) found that the perception of initial trust is vital in promoting personal intention to use mobile banking services. Gefen et al (2003) also found that potential customers (inexperienced customers) were influenced by their trust in the e-vendor.…”

The Influence of Intention to Use the Mobile Banking - The Privacy Mechanism Perspective

“…Trust is a long-term relationship, and transaction is a critical factor (Chaudhuri and Holbrook, 2001).Trust is also a critical point for e-commerce there are a lack of proven guarantees that the e-vendor will not engage in harmful opportunistic behaviors (Gefen, Straub, and Boudreau, 2000;Kollock, 1999;Reichheld and Schefter, 2000).Such behaviors include unfair pricing, conveying inaccurate information, violating privacy, unauthorized use of credit card information, and unauthorized tracking of transactions (Gefen, Karahanna, and Straub, 2003).A trust relationship benefits the e-vendor (Reichheld and Schefter, 2000).Prior literature shows TAM as a theoretical frame work a critical factor that reflects the user's security and privacy concerns in the customer acceptance of Internet banking (Wang, Wang, Lin, and Tang, 2003).Therefore, one reason to not use mobile banking is a lack of trust (Lin, 2011;Kim et al, ISSN 1941-899X 2017 2009; Lee and Chung, 2009). Competence, benevolence, integrity and predictability of trusting beliefs can generate trust (McKnight, Cummings, and Chervany, 1998).…”

“…But some people said not to worry at all (24.7%) when they use mobile banking (TWNIC, 2016).The data show that most mobile banking users have existing concerns about privacy and security. Many bank customers have a lack of trust, lack of controllability, security issue, and concern privacy of electronic banking (Susanto, 2016;Kim, Shin, and Lee, 2009;Lee and Chung, 2009;Luarn and Lin, 2005).Therefore, there are many banking customers that still prefer ATM banking services (Shih and Fang, 2006).Mobile banking firms should emphasize the importance of security, safety, reliability and convenience (Lin, 2011).However, banking firms offer mobile banking service that not only build a safe transaction environment, but also focus on the security of personal information collection and privacy mechanism. Previous studies only discussed the trust perceived and intention of usage mobile banking (Gumussoy, 2016;Gu, Lee, and Suh, 2009) or the concern privacy and personal perceived of adopt Internet banking (Susanto, 2016;Pikkarainen, Pikkarainen, Karjaluoto, and Pahnila, 2004).Few studies have focused on the issue of privacy mechanism influence concerns for personal information, trust perceived, and risk perceived attitude.…”