Digital Trust in Banking: Post Graduate Students Perspective

Digital innovations have transformed the way in which customers interact with their banks and manage their finances. An increasing number of banks are receiving instructions and providing services to their clients via the internet and other digital platforms. Channels like the internet and mobile applications have lowered costs, increased efficiencies, and broken down time barriers in the provision of bank services. The banking sector still relies heavily on trust, which motivates customers to adopt digital banking services in the face of a world that has become more digitally connected. Therefore, for customers to truly use banks’ digital channels, it is critical that they are trusted. This study aims to investigate the dynamics of digital trust from the perspective of bank customers. A descriptive quantitative research methodology was employed, using a questionnaire to gather information from 407 participants across four prestigious business schools: Wits Business School, Gordon Institute of Business Science, Management College of Southern Africa, and Johannesburg Business School. Additionally, a smaller cohort from other universities was included. The key findings indicate that a significant majority (65%) of participants use digital banking services for most or all their banking needs, with mobile banking applications being the preferred channel. Trust in digital banking was generally high, with 315 (77%) participants expressing high to very high trust levels. However, security concerns were prevalent, with 50% extremely concerned about the security of their personal and financial information. Participants suggested several improvements to enhance their trust and satisfaction, including advanced security measures, better protection against coercion, improved customer support, and user-friendly interfaces. Specific recommendations included biometric authentication, real-time fraud detection, and consistent engagement on security updates. The findings emphasise the importance of robust security measures and responsive customer support to foster greater trust and satisfaction. By addressing these areas, banks can enhance their digital offerings, leading to increased adoption and customer retention.