Title: Privacy, security, infrastructure and cost issues in internet banking in the Philippines: initial trust formation

Authors: Candy Lim Chiu; Jason Lim Chiu; Somkiat Mansumitrchai

Addresses: Faculty of Advertising and Public Relations, Keimyung University, Daegu, South Korea ' Graduate School, University of Santo Tomas, Manila, Philippines ' School of Management and Marketing, College of Business and Public Management, Wenzhou-Kean University, Wenzhou, China

Abstract: The overall purpose of this study is to develop an understanding of the issues that influence initial trust on behavioural intention to use internet banking in developing countries like the Philippines. The country has experienced sophisticated cyberattacks, slowest download internet speed and average internet costs per Mbps that are far above the global average standards. The study proposes and empirically tests if these issues influence initial trust formation with a sample of 454 local banks' customers who are non-users of internet banking services in the Philippines. Perceived costs, quality of infrastructure, privacy, security and disposition to trust were barriers to non-users' intentions to engage in any online financial transaction.

Keywords: internet banking; initial trust; privacy; security; infrastructure quality; perceived costs; Philippines; developing countries; online banking; e-banking; electronic banking; trust formation; customer behaviour; intention to use; bank customers.

DOI: 10.1504/IJFSM.2016.080119

International Journal of Financial Services Management, 2016 Vol.8 No.3, pp.240 - 271

Received: 13 Jun 2016
Accepted: 13 Aug 2016

Published online: 02 Nov 2016 *

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