Relationship between Trust, Perceived Risk and Behavioral Intention for Technology Acceptance in Banking Services

Consisting of many members empirical studies on internet banking services (IBS) adoption have focused on perceived risk or trust or behavioral intention; but rarely have they combined these concepts and used empirical evidence to investigate the relationship. This study aims to contribute to this field by looking simultaneously at the roles of trust, perceived risk, and behavioral intention on consumers ’ IBS usage intention. An integrated model explaining the interrelationships among trust, perceived risk and behavioral intention is developed for technology acceptance and internet banking. The research was conducted on a sample of 432 young Chinese consumers who can be classified as IBS early adopters. The quantitative findings are enhanced by the analysis of extensive qualitative data providing unique insights into this market. Results indicate that there is a significant relationship between trust, perceived risk and that both are crucial in explaining the technology acceptance and internet banking behavioral intention. Furthermore, trust in the bank is fundamental not only to reducing risk perceptions of IBS in general but also to building trust in the banks ’ competence in terms of IBS activity. This research adds value to existing studies of online banking, which largely focus on trust, risk and intention separately. In addition, it enables us to contribute to the current literature on the emerging Chinese IBS market, which is largely under-researched