Perceived Security as Trust Indicator in Adoption of Internet Banking in a Developing Country: An Empirical Study

Abstract

Internet Banking is becoming an important channel for banks to deliver banking services to their customers. In view of the potential benefits of Internet banking, banks are making heavy investments in building infrastructures, to offer to their customer's facilities for transacting with the bank online. While the Internet technology holds the potential to fundamentally change banks and the banking industry, it is still haunted by low rate of adoption by bank customers due to perceived risks in transacting in the virtual environment of Internet. This study makes a modest attempt to find the various factors/components of security that influences the user's security perception which in turn acts like a trust indicator towards adoption of Internet banking and proposes a research model for the same. This paper presents the empirical validation of the research model proposed through a survey of 107 internet banking users.