IDEAS home Printed from https://ideas.repec.org/a/pet/annals/v17y2017i1p223-234.html
   My bibliography  Save this article

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

Author

Listed:
  • Sigit Pamungkas

    (Islamic University of Indonesia, Indonesia)

  • Hadri Kusuma

    (Islamic University of Indonesia, Indonesia)

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.

Suggested Citation

  • Sigit Pamungkas & Hadri Kusuma, 2017. "Initial Trust of Customers and Adoption of Mobile Banking: An Empirical Study from Indonesia," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 17(1), pages 223-234.
  • Handle: RePEc:pet:annals:v:17:y:2017:i:1:p:223-234
    as

    Download full text from publisher

    File URL: https://www.upet.ro/annals/economics/pdf/2017/p1/Pamungkas-Kusmua.pdf
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Aityoussef, Asmaa & Belhcen, Lhacen, 2022. "“A predictive model of building initial trust in sharing economy: MULTI-DIMENSIONAL analysis of facebook users in Morocco”," Technology in Society, Elsevier, vol. 71(C).

    More about this item

    Keywords

    Initial Trust; Trust; Adoption; Mobile Banking;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General

    Statistics

    Access and download statistics

    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:pet:annals:v:17:y:2017:i:1:p:223-234. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Imola Driga (email available below). General contact details of provider: http://www.upet.ro/ .

    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.