A Comparative Study of Trust in Mobile Banking: An Analysis of U.S. and Thai Customers

A Comparative Study of Trust in Mobile Banking: An Analysis of U.S. and Thai Customers

Ravi Lonkani (Chiang Mai University, Chiang Mai, Thailand), Chuleeporn Changchit (Texas A&M University - Corpus Christi, Corpus Christi, USA), Tim Klaus (Texas A&M University - Corpus Christi, Corpus Christi, USA) and Jomjai Sampet (Chiang Mai University, Chiang Mai, Thailand)
Copyright: © 2020 |Pages: 25
DOI: 10.4018/JGIM.2020100106
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With the rapid growth of mobile phone usage, mobile services have influenced many industries including banking. Mobile banking has become a popular service as it offers a convenient channel for customers to perform banking transactions. Nevertheless, not all customers feel safe performing financial transactions online. Trust has become a crucial element on whether customers choose to use mobile banking. As a comparative study, this research examines factors and bank customers' characteristics that influence trust in mobile banking between U.S. and Thai mobile banking customers. Three hundred and eight USA consumers and two hundred and fifty-two Thai consumers participated in this study. The results found multiple significant factors influencing trust and usage of mobile banking. This study expands on previous trust and mobile banking usage research and provides practical implications for cross-cultural strategies in mobile banking.
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Emerging technologies often result in new opportunities, choices, and possibilities, which allow businesses to open new channels for offering products or rendering services to suit their customers’ needs (Bhattacharjee et al., 2006; Hajli and Featherman, 2017). The availability of new online services has affected the survival or success of organizations (Bapna et al., 2014). Banking is one industry that has needed to significantly expand their online services through the use of new technologies, adapting to meet the needs of their customers. The rapid adoption of mobile technology has led to the growth of mobile banking services (Al-Otaibi, 2018). Delivering online services through mobile banking apps shifts the interaction with customers to mobile devices and can be a key component of customer satisfaction, customer retention, and ultimately, banking success (Sampaio et al., 2017).

Empirical data has determined that a customer’s perception of value is one of the factors that will indicate user loyalty. This factor affects whether a customer stays with a company and is a critical element to the banking sector as it affects company earnings (Liebana-Cabanillas et al., 2016). Mobile banking is a banking channel which provides value to customers and may potentially influence the loyalty of customers as it combines the conveniences of Internet banking and processing transactions through a generally easy to use mobile interface (Song, 2015). In addition, mobile banking has been shown to increase the commitment and allegiance of bank customers (Liebana-Cabanillas et al., 2016).

Recently, the number of consumers owning sophisticated mobile handheld devices, i.e., smart phones, has rapidly increased (Gerpott et al., 2013; Kim et al., 2013). However, despite a rapid increase in smartphone users, not all banking customers are ready to embrace this mobile banking channel (Changchit et al., 2018). Banks still face challenges when deploying the technology because a good number of customers are reluctant to use mobile banking for a variety of reasons (Hong, 2019). One reason for this is the lack of trust. Trust plays a crucial role in determining the success of E-commerce, not only attracting new customers but also retaining customers so they continue making purchases (Angriawan and Thakur, 2008). In a survey conducted by Center for International Governance Innovation, 52% of global users are now more concerned about privacy than a year ago and 81% expressed cybercriminals as their primary source of concern (CIGI-Ipsos, 2018). In Malaysia, 91% of online users did not shop online because of lack of trust with online shopping (Samuel et al. 2015). Trust is a major determinant in the success of E-commerce, and there is a need for companies providing services through the Internet to increase the level of trust that their customers have (Wingreen et al., 2018). In the banking industry, trust is related to security and privacy. These factors are even more important for mobile banking and are the major hurdles that impede customers to adopt mobile banking (Yousafzai et al., 2009; Masrek, 2018).

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