Impact of Trust on Internet Banking Adoption: A Literature Review

Banks spend a great amount of money on providing the Internet banking service to customers. Hence, the lack of adoption of Internet banking can bring negative consequences for the banks. As a result, banks continuously try to adapt their business strategies to increase customer satisfaction. This paper provides an overview of the extant research into the relationships between trust and Internet banking adoption from the customers’ perspective. The literature review covers empirical studies on trust and online trust, the factors of trust and the adoption of Internet banking. To facilitate the review and analysis of the studies reported in the literature, we propose a framework of customer factors and website factors which affect trust and organize the impact of trust on Internet banking adoption under the proposed framework. The findings indicate that trust has a positive effect on the adoption of Internet banking. Moreover, the results show that there are many factors related to trust in electronic services. The majority of the research has been conducted in the context of Internet banking. Drawing on these studies, the review presented in this paper offers an overview of the relevant variables that may affect people’s trust in Internet banking.