Consumers’ attitudes, perceived risk, trust and internet banking adoption in Uganda

Abstract

The purpose of this research was to establish the relationship between consumer attitudes, trust, perceived risk and internet banking adoption in Uganda. A cross sectional, descriptive and analytical research design was used. A correlation matrix between the constructs of consumer attitudes, trust, and perceived risk against Internet Banking Adoption was carried out to test the direction and strength of relationships between the study variables. Primary data was collected using a self structured questionnaire from commercial bank customers. A regression analysis focusing on consumer attitudes, trust, and perceived risk was made to establish the extent to which they contribute internet banking adoption. The findings indicate a positive relationship between Consumer attitudes, trust and internet banking adoption. This implies that if the customers have positive attitudes towards internet banking, they are bound to trust the transactions done in this fashion and therefore changing consumer attitudes should be given more emphasis by commercial banks that is should be informative when planning any new internet service for financial customers. Findings further reveal that there was a negative relationship between perceived risk and internet banking adoption that is when the level of perceived risk is high, customers may not adopt internet banking and therefore a clear strategy to reduce the internet banking risk must be put in place. The study concluded that consumer attitudes, trust, perceived risk significantly affect internet banking adoption and therefore recommended that Consumer Attitudes, Trust and Perceived risk reduction should be emphasized in commercial banks to improve internet banking adoption rate.