Antecedents of Trust in Online Banking: A Bangladeshi Perspective

Abstract

The purpose of this study is to identify the factors influencing trust in online banking in the context of Bangladesh. To conduct this study, judgmental sampling technique was used to collect quantitative data from 100 teachers and students of University of Dhaka. Using factor analysis, three antecedents of trust in online banking, such as perceived security, perceived privacy and bank reputation, were identified. Subsequently, results of multiple regression analysis revealed that clients’ perception of privacy, security and bank reputation positively contributes to trust toward online banking. Among the identified antecedents, perceived privacy was found to be the most influential predictor of trust toward online banking. It is believed that the results of this research would be helpful for marketers and managers of banks who have a desire to increase clients’ loyalty by obtaining their trust with online banking services.