Factors influencing private customers′ trust in internet banking: case of Latvia

Abstract

Banking sector has developed and extended the usage of online services in the past decade. In fact, nowadays, Internet-based banking services dominate over other historically provided alternatives. This article discusses private clients’ trust in Internet banking in Latvia. The model of trust in Internet banking was developed based on four factors, distinguished in the scientific literature. They are provided information, bank’s characteristics, e-banking system and website of a bank. Hence, the goal of the research is to measure the impact of distinguished factors on trust in Internet banking. In order to determine how these attributes affect private customers’ trust, correlation and regression analysis were applied. The results showed that the most vital factor affecting private clients’ trust in Internet banking is e-banking system. What is more, it was found that provided information is a statistically insignificant factor and, hence, it was removed from the model. Respondents, being private customers, limit the breadth of study, thus the results do not reflect companies’ trust in Internet banking.