Title: Exploring the effect of perceived risk on adoption of mobile banking in India

Authors: Noopur Saxena; Navneet Gera; Raman Preet Singh

Addresses: Bharati Vidyapeeth Institute of Management and Research (BVIMR), Paschim Vihar, New Delhi, 110063, India ' Bharati Vidyapeeth Institute of Management and Research (BVIMR), Paschim Vihar, New Delhi, 110063, India ' Vivekananda Institute of Professional Studies, AU Block, Pitampura, Delhi 110034, India

Abstract: The growth of mobile banking is below expectation. The functionality of mobile for banking services is limited due to the risk and vulnerability involved in mobile banking. The objective of this study is to investigate the impact of perceived risk on consumer intention to adopt m-banking. For this, 242 non-users of m-banking in Delhi were surveyed with given 26 different statements. Derived from perceived risk theory, five essential perceived risk determinants were validated, including perceived financial risk, privacy risk, performance risk, psychological risk and time risk. Exploratory factor analysis and confirmatory factor analysis were used to explore the factors. The finding of the paper suggested that perceived privacy risk is the most critical factor which acts as a barrier in the mobile banking acceptance. The findings may help the banking sector, corporate and policy makers in better understanding of perceived risk and will also help in framing the relevant strategies.

Keywords: mobile banking; perceived risk; consumer acceptance; perceived privacy risk.

DOI: 10.1504/IJPSPM.2020.110141

International Journal of Public Sector Performance Management, 2020 Vol.6 No.5, pp.722 - 736

Received: 21 May 2019
Accepted: 11 Aug 2019
Published online: 07 Oct 2020 *

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