IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i5p4053-d1077724.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Rakesh Kumar & Rubee Singh & Kishore Kumar & Shahbaz Khan & Vincenzo Corvello, 2023. "How Does Perceived Risk and Trust Affect Mobile Banking Adoption? Empirical Evidence from India," Sustainability, MDPI, vol. 15(5), pages 1-21, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4053-:d:1077724
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/5/4053/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/5/4053/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shalini Shukla & Rakesh Kumar, 2020. "Researcher Intention to Use Statistical Software: Examine the Role of Statistical Anxiety, Self-Efficacy and Enjoyment," International Journal of Technology and Human Interaction (IJTHI), IGI Global, vol. 16(3), pages 39-55, July.
    2. Viswanath Venkatesh & Xiaojun Zhang, 2010. "Unified Theory of Acceptance and Use of Technology: U.S. Vs. China," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 13(1), pages 5-27, January.
    3. Shalini Shukla & Rakesh Kumar, 2019. "Role of Trust in Adoption of Online Good Service Tax Filing in India," Vikalpa: The Journal for Decision Makers, , vol. 44(3), pages 99-114, September.
    4. Ha Nguyen Van & Long Pham & Stan Williamson & Vu Thanh Huong & Pham Xuan Hoa & Pham Lam Hanh Trang, 2020. "Impact of perceived risk on mobile banking usage intentions: trust as a mediator and a moderator," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 12(1), pages 94-118.
    5. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    6. Bagozzi, Richard P & Warshaw, Paul R, 1990. "Trying to Consume," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(2), pages 127-140, September.
    7. Ayman A. Alsmadi & Ahmed Shuhaiber & Loai N. Alhawamdeh & Rasha Alghazzawi & Manaf Al-Okaily, 2022. "Twenty Years of Mobile Banking Services Development and Sustainability: A Bibliometric Analysis Overview (2000–2020)," Sustainability, MDPI, vol. 14(17), pages 1-14, August.
    8. Rahi Samar & Abd Ghani Mazuri, 2019. "Does gamified elements influence on user's intention to adopt internet banking with integration of UTAUT and general self-confidence?," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 19(3), pages 394-414.
    9. Lian, Jiunn-Woei & Li, Ji, 2021. "The dimensions of trust:An investigation of mobile payment services in Taiwan," Technology in Society, Elsevier, vol. 67(C).
    10. Malaquias, Rodrigo Fernandes & Silva, Altieres Frances, 2020. "Understanding the use of mobile banking in rural areas of Brazil," Technology in Society, Elsevier, vol. 62(C).
    11. Warsame, Mohammed Hersi & Ireri, Edward Mugambi, 2018. "Moderation effect on mobile microfinance services in Kenya:An extended UTAUT model," Journal of Behavioral and Experimental Finance, Elsevier, vol. 18(C), pages 67-75.
    12. Rahi, Samar & Abd.Ghani, Mazuri & Hafaz Ngah, Abdul, 2019. "Integration of unified theory of acceptance and use of technology in internet banking adoption setting: Evidence from Pakistan," Technology in Society, Elsevier, vol. 58(C).
    13. Savitha Basri, 2018. "Determinants of adoption of mobile banking: evidence from rural Karnataka in India," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 11(1/2), pages 77-86.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seongho Kim & Hyuk-Jun Kwon & Hyeob Kim, 2023. "Mobile Banking Service Design Attributes for the Sustainability of Internet-Only Banks: A Case Study of KakaoBank," Sustainability, MDPI, vol. 15(8), pages 1-17, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yadgar Taha M. Hamakhan, 2020. "The effect of individual factors on user behaviour and the moderating role of trust: an empirical investigation of consumers’ acceptance of electronic banking in the Kurdistan Region of Iraq," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-29, December.
    2. Arfi, Wissal Ben & Nasr, Imed Ben & Kondrateva, Galina & Hikkerova, Lubica, 2021. "The role of trust in intention to use the IoT in eHealth: Application of the modified UTAUT in a consumer context," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    3. Lucia Reisch & Clive L Spash & Sabine Bietz, 2008. "Sustainable Consumption and Mass Communication: A German Experiment," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2008-12, CSIRO Sustainable Ecosystems.
    4. Chen, Xia & Miraz, Mahadi Hasan & Gazi, Md. Abu Issa & Rahaman, Md. Atikur & Habib, Md. Mamun & Hossain, Abu Ishaque, 2022. "Factors affecting cryptocurrency adoption in digital business transactions: The mediating role of customer satisfaction," Technology in Society, Elsevier, vol. 70(C).
    5. Guych Nuryyev & Yu-Ping Wang & Jennet Achyldurdyyeva & Bih-Shiaw Jaw & Yi-Shien Yeh & Hsien-Tang Lin & Li-Fan Wu, 2020. "Blockchain Technology Adoption Behavior and Sustainability of the Business in Tourism and Hospitality SMEs: An Empirical Study," Sustainability, MDPI, vol. 12(3), pages 1-21, February.
    6. Mario Arias-Oliva & Jorge de Andrés-Sánchez & Jorge Pelegrín-Borondo, 2021. "Fuzzy Set Qualitative Comparative Analysis of Factors Influencing the Use of Cryptocurrencies in Spanish Households," Mathematics, MDPI, vol. 9(4), pages 1-19, February.
    7. Alam, Syed Shah & Nik Hashim, Nik Hazrul & Rashid, Mamunur & Omar, Nor Asiah & Ahsan, Nilufar & Ismail, Md Daud, 2014. "Small-scale households renewable energy usage intention: Theoretical development and empirical settings," Renewable Energy, Elsevier, vol. 68(C), pages 255-263.
    8. Jeroen P.J. de Jong, 2013. "The Decision to Exploit Opportunities for Innovation: A Study of High–Tech Small–Business Owners," Entrepreneurship Theory and Practice, , vol. 37(2), pages 281-301, March.
    9. Vanduy Tran & Shengchuan Zhao & El Bachir Diop & Weiya Song, 2019. "Travelers’ Acceptance of Electric Carsharing Systems in Developing Countries: The Case of China," Sustainability, MDPI, vol. 11(19), pages 1-22, September.
    10. Lavaei Adaryani, Rasool & Palouj, Mojtaba & Karbasioun, Mostafa & Asadi, Ali & Gholami, Hesamedin & Kianirad, Ali & Joodi Damirchi, Milad, 2024. "Antecedents of blockchain adoption in the poultry supply chain: An extended UTAUT model," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    11. De Cannière, Marie Hélène & De Pelsmacker, Patrick & Geuens, Maggie, 2009. "Relationship Quality and the Theory of Planned Behavior models of behavioral intentions and purchase behavior," Journal of Business Research, Elsevier, vol. 62(1), pages 82-92, January.
    12. Giao, Ha Nam Khanh & Tuan, Huynh Quoc, 2021. "Intention To Buy Air Ticket Online of Vietnamese Consumers," OSF Preprints d5uh8, Center for Open Science.
    13. Giao, Ha Nam Khanh & Tuan, Huynh Quoc, 2021. "Intention To Buy Air Ticket Online Of Vietnamese Consumers," OSF Preprints 867s5, Center for Open Science.
    14. Bamberg, Sebastian, 2002. "Implementation intention versus monetary incentive comparing the effects of interventions to promote the purchase of organically produced food," Journal of Economic Psychology, Elsevier, vol. 23(5), pages 573-587, October.
    15. Ian Phau & James Ng, 2010. "Predictors of Usage Intentions of Pirated Software," Journal of Business Ethics, Springer, vol. 94(1), pages 23-37, June.
    16. Zhou, Min & Huang, Jinlong & Wu, Kexin & Huang, Xin & Kong, Nan & Campy, Kathryn S., 2021. "Characterizing Chinese consumers’ intention to use live e-commerce shopping," Technology in Society, Elsevier, vol. 67(C).
    17. Lorenz Graf-Vlachy & Katharina Buhtz & Andreas König, 2018. "Social influence in technology adoption: taking stock and moving forward," Management Review Quarterly, Springer, vol. 68(1), pages 37-76, February.
    18. Nadeem, Waqar & Andreini, Daniela & Salo, Jari & Laukkanen, Tommi, 2015. "Engaging consumers online through websites and social media: A gender study of Italian Generation Y clothing consumers," International Journal of Information Management, Elsevier, vol. 35(4), pages 432-442.
    19. Ameen, Nisreen & Shah, Mahmood Hussain & Sims, Julian & Choudrie, Jyoti & Willis, Robert, 2020. "Are there peas in a pod when considering mobile phone and mobile applications use: A quantitative study," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    20. Cai, Lanhui & Yuen, Kum Fai & Xie, Diancen & Fang, Mingjie & Wang, Xueqin, 2021. "Consumer's usage of logistics technologies: Integration of habit into the unified theory of acceptance and use of technology," Technology in Society, Elsevier, vol. 67(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4053-:d:1077724. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.