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Factors Influencing Customer Trust in Mobile Banking: Case of Latvia

Author

Listed:
  • Skvarciany Viktorija

    (Vilnius Gediminas Technical University, Lithuania)

  • Jureviciene Daiva

    (Vilnius Gediminas Technical University, Lithuania)

Abstract

The banking sector has developed and extended the use of its services in the past decade. In fact, nowadays mobile banking (M-banking) is the most developing service offered by a bank. In order to encourage customers to use m-banking services, it is extremely important to get clients to trust the M-banking services provided by the bank. This article discusses private clients’ trust in mobile banking in Latvia. Hence, the goal of the research is to identify the key factors driving individual customer’s confidence in mobile banking. In order to determine the weight of each factor, expert evaluation method based on analytic hierarchy process (AHP) was used. The results showed that the most vital factor affecting private clients’ trust in mobile banking is customer characteristics, especially customers’ computer literacy. However, after summarizing all the subfactors, it became clear that the most powerful in the trust-building process is convenience/practicality of using a mobile application. However, there is a limitation – the survey was conducted by interviewing experts, which means that the results may differ from the responses of the clients themselves.

Suggested Citation

  • Skvarciany Viktorija & Jureviciene Daiva, 2017. "Factors Influencing Customer Trust in Mobile Banking: Case of Latvia," Economics and Culture, Sciendo, vol. 14(2), pages 69-76, December.
    • Handle: RePEc:vrs:ecocul:v:14:y:2017:i:2:p:69-76:n:7
    DOI: 10.1515/jec-2017-0019
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    References listed on IDEAS

    as
    1. Picón-Berjoyo, Araceli & Ruiz-Moreno, Carolina & Castro, Ignacio, 2016. "A mediating and multigroup analysis of customer loyalty," European Management Journal, Elsevier, vol. 34(6), pages 701-713.
    2. Kurt, Yusuf & Yamin, Mo & Sinkovics, Noemi & Sinkovics, Rudolf R., 2016. "Spirituality as an antecedent of trust and network commitment: The case of Anatolian Tigers," European Management Journal, Elsevier, vol. 34(6), pages 686-700.
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    More about this item

    Keywords

    trust; mobile banking; analytic hierarchy process (AHP); expert evaluation; Latvia;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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