How Does Perceived Risk and Trust Affect Mobile Banking Adoption? Empirical Evidence from India

Rakesh Kumar, Rubee Singh, Kishore Kumar, Shahbaz Khan and Vincenzo Corvello ()
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Rakesh Kumar: School of Management Studies, Motilal Nehru National Institute of Technology, Prayagraj 211004, India
Rubee Singh: Institute of Business and Management, GLA University, Mathura 281406, India
Kishore Kumar: School of Business and Management, Christ University, Ghaziabad 201003, India
Shahbaz Khan: Institute of Business and Management, GLA University, Mathura 281406, India
Vincenzo Corvello: Department of Engineering, University of Messina, Contrada di Dio, 98122 Messina, Italy

Sustainability, 2023, vol. 15, issue 5, 1-21

Abstract: The emergence of high-speed internet (5G) services and the demonetization of the Indian currency by the Government of India in the year 2016 served as catalysts for the growth of banking services, such as internet/mobile banking. The main objective of the study was to investigate the role of perceived financial cost, perceived risk, and trust in the adoption of mobile banking services by users. The study extends the Unified Theory of Acceptance and Use of Technology (UTAUT) to explain the adoption of mobile banking services by young Indian customers. The data from 253 users of age between 18–30 years were collected through a survey questionnaire and were analyzed using structural equation modeling with Amos 22.0. The results revealed that performance expectancy, effort expectancy, social influence, and perceived financial cost exhibited a significant positive influence on behavioral intentions. However, the facilitating conditions were found to exert no effect on actual use. In addition, the results demonstrate that both perceived risk and perceived trust moderate the relationship between behavioral intention and the actual use of mobile banking. The results of the study provide some novel insights into how perceived risk and perceived trust shape the interplay between behavioral intention and the actual use of mobile banking services. The inferences drawn from the study may enhance the understanding of the transformation of behavioral intention into the adoption and actual use of mobile banking services.

Keywords: mobile banking; perceived financial cost; perceived risk; perceived trust; technology adoption; emerging technologies; UTAUT model (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 (1)

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