The Marketing Prospects of Consumer Trust in Banking Services to Reduce Perceived Financial Risk and Enhance Intention to Use Internet Banking

Abstract

Purpose – Eight items are measured to determine consumers’ perceived financial risk in using Internet retail banking and set up a framework to understand the role of perceived financial risk, and how it relates with consumer's trust in Internet retail banking and behavioral intentions to use Internet retail banking. Methods – An online survey was conducted using 307 Malaysian online banking customers. Therefore,Structural equation modeling was used to analyze the collected data. Findings – A consumer's behavioral intentions to use Internet retail banking are also affected by their perceived financial risk. And there is a mediating role of perceived financial risk exists in the relationship between consumer's trust in Internet retail banking and behavioral intentions to use Internet retail banking. Originality/value – The results confirm that banks must reflect on their consumer's trust while reducing various perceived financial risks such as financial loss resulting from credit card number loss, service delivery loss, overcharged fee on an online transaction,etc.,