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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
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    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

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