Main Article Content
Abstract
Studies on the relationship of perceived trust and risk are not done as an important determinant in the adoption of Internet Banking in Kerala. The study explores to examine the effect of perceived trust and risk in the adoption of Internet Banking in Kerala and investigates the effect of adoption of Internet Banking with Trust. The study is cross-sectional, descriptive and analytical in nature. Survey method using structured questionnaire was carried out to acquire data from 1045 respondents from Kerala. Pilot study was conducted on 48 respondents from central part of Kerala. Stratified random sampling technique was adopted for data collection. Based on the account with the banks the researcher has classified the entire sample respondents into three categories namely public, old private and new generation private sector banks. In the present study 351 (33.60 percent) respondents are from public sector banks, 340 (32.50 percent) respondents are from private sector banks and 354 (33.90 percent) respondents are from new generation private sector banks. Mean, standard deviation, Brown-Forsythe test, Jonckheere-Terpstra test, ANOVA, and Linear Regression were used for analysis. The results showed that there is linear relationship between perceived trust and risk. Also there is linear relationship existing between adoption and trust. The findings of the study have managerial implications for banks to maintain trust among the customers, banks should build websites that are not only useful and easy to use but should include trust building mechanisms. Banks should increase their ability to manage and control the various types of risks in the adoption of Internet Banking.