Investigating the Role of Perceived Risk, Perceived Security and Perceived Trust on Smart m-Banking Application Using SEM

Mohammed Amin Almaiah (), Shaha Al-Otaibi (), Rima Shishakly, Lamia Hassan, Abdalwali Lutfi, Mahmoad Alrawad, Mohammad Qatawneh and Orieb Abu Alghanam
Additional contact information
Mohammed Amin Almaiah: Faculty of Information Technology, Applied Science Private University, Amman 11931, Jordan
Shaha Al-Otaibi: Department of Information Systems, College of Computer and Information Sciences, Princess Nourah Bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi Arabia
Rima Shishakly: Management Department, College of Business Administration, Ajman University, Ajman 346, United Arab Emirates
Lamia Hassan: College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Abdalwali Lutfi: College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Mahmoad Alrawad: College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Mohammad Qatawneh: King Abdullah the II IT School, Department of Computer Science, The University of Jordan, Amman 11942, Jordan
Orieb Abu Alghanam: King Abdullah the II IT School, Department of Computer Science, The University of Jordan, Amman 11942, Jordan

Sustainability, 2023, vol. 15, issue 13, 1-17

Abstract: Effective security support remains a challenge, even for mobile banking applications; this is leading to the loss of many customers due to limited protection of customer data and privacy. Cyber threats include everything from identity theft to malware threats and email and online fraud. Thus, businesses and individuals should use risk assessment methods and countermeasures to protect their m-banking apps. With this in mind, a new model using the Technology Acceptance Model (TAM) has been proposed. The model has been broken down into six main countermeasure categories, namely: perceived risk, perceived security, perceived trust, ease of use, usefulness and service quality. To test this model, structural equation modelling (SEM) was used. Our findings reveal that perceived security, perceived trust and service quality play key roles in improving the adoption of mobile banking apps. In addition, the findings indicate that perceived risk had a negative impact on both clients’ trust and their attitudes toward the use of mobile banking services. The proposed model could increase the adoption of m-banking apps by enhancing their defenses against security risk issues. The model enhances the risk reduction (63.0%), data protection (75.0%), trust (32.1%), quality of service (74.0%), ease of use (44.0%) and usefulness (45.3%) ratios.

Keywords: mobile banking apps; TAM; perceived security; perceived trust; service quality; structural equation model (SEM) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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