Perceived Risk Dimensions and Its Impact on Intention to Use E-Banking Services: A Conceptual Study

Abstract

E-Banking has emerged as a channel to provide banking services to customers electronically via banks websites. Although e-banking services have gained a lot of attention due to its enormous advantages, many consumers are still not willing to use them because of the risk involved in conducting transactions online, hidden charges, lack of trust and system failure. There is a plethora of research conducted on the positive utility gains attributable to e-banking adoption or usage but the measures of potential negative utility (perceived risk) have been ignored. In the present study, the diverse literature available worldwide on perceived risk factors in e-banking has been explored by using interpretative approach, viz. objectives, research methodology, sample, respondents and the results of the study for further enquiry. This study builds up a strong conceptual framework for the researchers by thoroughly analyzing the empirical studies on perceived risk in different countries. The current research adds value to the existing literature and also leads to discussion addressing further areas for open debate and research. Our approach has meaningful implications for managing risk in the e-banking sector. The banks should put more emphasis on implementing e-banking risk management practices in order to increase usage of e-banking services among consumers.

Keywords: Perceived Risk, E-Banking, Security Risk, Intention to Use

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