Initial Trust of Customers and Adoption of Mobile Banking: An Empirical Study from Indonesia

Sigit Pamungkas () and Hadri Kusuma
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Sigit Pamungkas: Islamic University of Indonesia, Indonesia
Hadri Kusuma: Islamic University of Indonesia, Indonesia

Annals of the University of Petrosani, Economics, 2017, vol. 17, issue 1, 223-234

Abstract: A lack of trust in an electronic channel may cause delayed acceptance by customers to use information technology such as mobile banking as a distribution channel in doing financial transactions. Previous studies have shown that trust in the electronic channel of the bank has been a critical factor encouraging the customer's adoption behavior. This study surveyed 159 banking customers adopting and 75 without adopting of mobile banking. Simultaneous equation results show that trust owned by the mobile banking users was a substantial factor encouraging mobile banking adoption. In addition, the propensity to trust, structural assurances, and word of mouth referrals contributed to an increase in customers' initial trust level to adopt the mobile phone as a medium for banking transactions. Furthermore, this study indicated a significant relationship between initial trust in the electronic channel and the adoption of mobile banking.

Keywords: Initial Trust; Trust; Adoption; Mobile Banking (search for similar items in EconPapers)
JEL-codes: G20 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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