| The use of the Internet is growing at a remarkable rate. Web applications have become very popular for browsing through information, publishing documents, providing information, and offering goods. Today, the Internet has become a widely used tool for marketing, electronic commerce, and online banking. However, with the growing use of the Internet, security has become an important concern of users and network managers. Even though Internet banking has long been established, this study assumed that the most important factors that might be slowing the progress of this new innovation is the consumer's concern for the security of financial transactions over the Internet. Thus, with escalated Internet security incidents, the question of trust is encountered with increasing frequency. It is the intent of this research to show that trust in the electronic channel and perceived risks of online banking, due to Internet security, are the major determinants of adoption behavior. The study evaluates the adoption of online banking with respect to Rogers' Diffusion of Innovation Theory.; This study was inspired by the recognition that trust has new dimensions in financial services. The focus of this study is on trust; however, it is important to note that whenever there is trust, there is risk. Thus, trust is accepting risk. Trust, risk, security, and reliability are fundamental to online banking.; This study assumed Internet security to be a major obstacle to the adoption of online banking, which made customers concerned about the safety of their online accounts and risk of fraudulent transactions. While these concerns remain legitimate, this study suggests that security risks do not appear as a real impediment to customers' adoption of online banking. The study finds that online banks are struggling to win customers' trust and it appears that trust, not technology, paces the adoption of online banking. What customers need is constant reassurance from banks. As online banking continues to grow, this study shows that the emphasis of online banking needs to shift from narrow security focus to broader risk management concerns. |
