• ISSN: 2301-3567
    • Frequency: Quarterly (2013-2014); Monthly (Since 2015)
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Chloe Wu
    • Abstracting/ Indexing: Engineering & Technology Library,  Electronic Journals Library, Ulrich's Periodicals Directory, MESLibrary, Google Scholar, Crossref, and ProQuest.
    • E-mail: joebm@ejournal.net
JOEBM 2017 Vol.5(4):168-172 ISSN: 2301-3567
DOI: 10.18178/joebm.2017.5.4.506

The Role of Perceived Trust of Physical Bank towards Perceived Risk on Internet Banking Acceptance from the User Perspective

Iwan Inrawan Wiratmadja, Natasya Dameria, and Amelia Kurniawati
Abstract— In internet things era, there has been a change in banking delivery channel towards online banking. Besides providing the ease for their customer to perform banking activity in anytime and anywhere using internet network, the cost of online banking development is considered much cheaper than the cost to set up new office branch or new ATM service. Although internet banking provides many benefits and eases for banking customer, many customers have not utilized internet banking to its potential usage. Many banking customers refuse to use online banking service due to the risk perceived by the customer in performing an online transaction using internet banking. Based on the previous study, overcome risk issue in internet banking, bank sector should win customer’s trust. Thus, trustworthiness is considered a critical factor for the success of e-business including internet banking. Most of the studies related user’s acceptance are conducted using TAM model, but still few studies that integrate perceive risk, TAM, and trust. This study aims to increase the understanding towards the factors that drive the customer to refuse the usage of internet banking, the factors which drive the customer to accept internet banking usage, and the role of those factor towards customer’s behavioral intention in using internet banking service. An empirical study was conducted using 242 sample data of internet banking customer in Indonesia. The result of this study shows that trust has a negative effect towards risk and security risk has a non-significant effect towards attitude towards using and behavioral intention.

Index Terms— Internet banking, perceived risk, TAM, trust.

Iwan Inrawan,Wiratmadja and Natasya Dameria are with the Industrial Engineering Department, Bandung Institute of Technology, Bandung, Indonesia (e-mail: iwan@ lspitb.org, natasyadameriamanalu@gmail.com).
Amelia Kurniawati is with Industrial Engineering Department, Telkom University, Bandung, Indonesia (e-mail: ameliakurniawati@telkomuniversity.ac.id).

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Cite: Iwan Inrawan Wiratmadja, Natasya Dameria, and Amelia Kurniawati, " The Role of Perceived Trust of Physical Bank towards Perceived Risk on Internet Banking Acceptance from the User Perspective," Journal of Economics, Business and Management vol. 5, no. 4, pp. 168-172, 2017.

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