The Effect of Perceived Risk on Intention to Use Online Banking

Abstract

Online banking is a major service for the contemporary banking sector's expansion plan. Numerous researchers have contributed to the research paradigm the positive aspects of online banking. Consumers sense the interconnectivity due to its presence online. Nonetheless, this service was not extensively utilized due to consumers’ remaining afraid of the danger of online transactions. Users fear to use such services online due to the prevalence of different kinds of risks. Thus, the detailed and distinctive risk job in risk awareness for the banking industry is an important and useful task. The influence of perceived risk in online banking use is investigated in this research. As it has been regarded for the majority of times, perceived risk serves as one of the major barriers towards usage of such kind of services. The paper has set out the varied categorical risks like privacy, social risk etc. which influences the usage or intention towards usage of such online banking services. The research model is envisaged on the basis of different theories of information technology acceptance. Questionnaire method was employed to obtain responses specifically from female users of online banking. Data collected were analyzed through Structural Equation Modelling (SEM). Results have been analyzed well. The findings of SEM show risk elements “privacy risk, security risk, social risk, time risk, and financial-performance risk” in perceived risk, which has a negative impact on desire to utilize online banking. Research findings may assist in suggesting ways to improve safety and mitigate online banking risks prevalent among users.