The role of trust, perceived security, and perceived privacy in the internet banking usage

Abstract

The Role of Trust, Perceived Security, and Perceived Privacy in the Internet Banking UsageThe highly accelerated growth of electronic banking services such as Internet banking has already become one of the most prominent examples of electronic commerce success in Inter-net-based application. Most research in electronic commerce particularly in Internet banking area have mainly focused on simply determinant antecedents regarding information technology adop-tion to explicate users’ initial trust. On other hand, many previous studies had also noted that, satisfaction, trust, commitment, and loyalty are very important elements in online banking suc-cess, whereas consumer’s reluctance to make decisions to accept and adopt electronic commerce has annotated to the role of trust, security, and privacy in commerce systems. Therefore, this study attempts to reveal what main factors apparently influence consum-ers’ initial trust in adopting Internet banking services in developing countries with a separate construct of trust, perceived security, and perceived privacy. Accordingly, this study also inves-tigate crucial factors significantly affect consumers’ satisfaction, trust, and commitment, which in turn formulating loyalty in Internet banking success.Consequently, based on Trust Model, DeLone and McLean IS Success Model, and Com-mitment-Trust Theory, the present research develops an extended framework for incorporating the formation of initial trust in Internet banking in Indonesia to better understand factors influ-encing technology acceptance. This study also proposes an extended unified framework incor-porated into the formation of consumer’s usage decisions and relational building behaviors to-wards Internet-based banking services in Indonesia and South Korea. Voluntary survey ques-tionnaires and partial least squares analysis was used to investigate the proposed models. The results revealed that, most factors investigated were affecting initial trust such as rela-...