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Investigating the Role of Perceived Risk, Perceived Security and Perceived Trust on Smart m-Banking Application Using SEM

Author

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  • Mohammed Amin Almaiah

    (Faculty of Information Technology, Applied Science Private University, Amman 11931, Jordan
    Department of Computer Networks, College of Computer Sciences and Information Technology, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

  • Shaha Al-Otaibi

    (Department of Information Systems, College of Computer and Information Sciences, Princess Nourah Bint Abdulrahman University, P.O. Box 84428, Riyadh 11671, Saudi Arabia)

  • Rima Shishakly

    (Management Department, College of Business Administration, Ajman University, Ajman 346, United Arab Emirates)

  • Lamia Hassan

    (College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

  • Abdalwali Lutfi

    (College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia)

  • Mahmoad Alrawad

    (College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia
    College of Business Administration and Economics, Al-Hussein Bin Talal University, Ma’an 71111, Jordan)

  • Mohammad Qatawneh

    (King Abdullah the II IT School, Department of Computer Science, The University of Jordan, Amman 11942, Jordan)

  • Orieb Abu Alghanam

    (King Abdullah the II IT School, Department of Computer Science, The University of Jordan, Amman 11942, Jordan)

Abstract

Effective security support remains a challenge, even for mobile banking applications; this is leading to the loss of many customers due to limited protection of customer data and privacy. Cyber threats include everything from identity theft to malware threats and email and online fraud. Thus, businesses and individuals should use risk assessment methods and countermeasures to protect their m-banking apps. With this in mind, a new model using the Technology Acceptance Model (TAM) has been proposed. The model has been broken down into six main countermeasure categories, namely: perceived risk, perceived security, perceived trust, ease of use, usefulness and service quality. To test this model, structural equation modelling (SEM) was used. Our findings reveal that perceived security, perceived trust and service quality play key roles in improving the adoption of mobile banking apps. In addition, the findings indicate that perceived risk had a negative impact on both clients’ trust and their attitudes toward the use of mobile banking services. The proposed model could increase the adoption of m-banking apps by enhancing their defenses against security risk issues. The model enhances the risk reduction (63.0%), data protection (75.0%), trust (32.1%), quality of service (74.0%), ease of use (44.0%) and usefulness (45.3%) ratios.

Suggested Citation

  • Mohammed Amin Almaiah & Shaha Al-Otaibi & Rima Shishakly & Lamia Hassan & Abdalwali Lutfi & Mahmoad Alrawad & Mohammad Qatawneh & Orieb Abu Alghanam, 2023. "Investigating the Role of Perceived Risk, Perceived Security and Perceived Trust on Smart m-Banking Application Using SEM," Sustainability, MDPI, vol. 15(13), pages 1-17, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:13:p:9908-:d:1176241
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    References listed on IDEAS

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