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How Does Perceived Risk and Trust Affect Mobile Banking Adoption? Empirical Evidence from India

Author

Listed:
  • Rakesh Kumar

    (School of Management Studies, Motilal Nehru National Institute of Technology, Prayagraj 211004, India)

  • Rubee Singh

    (Institute of Business and Management, GLA University, Mathura 281406, India)

  • Kishore Kumar

    (School of Business and Management, Christ University, Ghaziabad 201003, India)

  • Shahbaz Khan

    (Institute of Business and Management, GLA University, Mathura 281406, India)

  • Vincenzo Corvello

    (Department of Engineering, University of Messina, Contrada di Dio, 98122 Messina, Italy)

Abstract

The emergence of high-speed internet (5G) services and the demonetization of the Indian currency by the Government of India in the year 2016 served as catalysts for the growth of banking services, such as internet/mobile banking. The main objective of the study was to investigate the role of perceived financial cost, perceived risk, and trust in the adoption of mobile banking services by users. The study extends the Unified Theory of Acceptance and Use of Technology (UTAUT) to explain the adoption of mobile banking services by young Indian customers. The data from 253 users of age between 18–30 years were collected through a survey questionnaire and were analyzed using structural equation modeling with Amos 22.0. The results revealed that performance expectancy, effort expectancy, social influence, and perceived financial cost exhibited a significant positive influence on behavioral intentions. However, the facilitating conditions were found to exert no effect on actual use. In addition, the results demonstrate that both perceived risk and perceived trust moderate the relationship between behavioral intention and the actual use of mobile banking. The results of the study provide some novel insights into how perceived risk and perceived trust shape the interplay between behavioral intention and the actual use of mobile banking services. The inferences drawn from the study may enhance the understanding of the transformation of behavioral intention into the adoption and actual use of mobile banking services.

Suggested Citation

  • Rakesh Kumar & Rubee Singh & Kishore Kumar & Shahbaz Khan & Vincenzo Corvello, 2023. "How Does Perceived Risk and Trust Affect Mobile Banking Adoption? Empirical Evidence from India," Sustainability, MDPI, vol. 15(5), pages 1-21, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4053-:d:1077724
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    References listed on IDEAS

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    1. Seongho Kim & Hyuk-Jun Kwon & Hyeob Kim, 2023. "Mobile Banking Service Design Attributes for the Sustainability of Internet-Only Banks: A Case Study of KakaoBank," Sustainability, MDPI, vol. 15(8), pages 1-17, April.

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