The effect of institutional trust on internet banking acceptance: Perspectives of south African banking retail customers

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22 Citations (Scopus)


Transactions carried out in the uncertain and impersonal conditions of the Internet require substantial levels of trust. Obtaining customers’ trust is therefore imperative to cultivating and nurturing long-lasting and profitable customer-firm relationships in online environments. Surprisingly however, there is currently a dearth of research on the effects of trust on customers’ acceptance of e-commerce in Africa. This paper investigates the effects of the components of institutional trust on perceptions of ease of use and usefulness, as well as attitudes towards use on customers’ intentions to use Internet banking services. An integrated research model based on the Technology Acceptance Model (TAM) was built and empirically tested using data obtained from 390 retail banking customers in South Africa. The results show that the proposed model possesses high explanatory capabilities as it could explain 61 per cent of the variance in Internet banking use intentions. The study results further show that situational normality is neither a salient determinant of customers’ attitudes towards use of internet banking nor their use intention, whereas structural assurance is. By examining the effects of institutional trust on the TAM’s variables, especially in a developing African country, this study does not only provide insights for managers in their efforts to achieve rapid adoption of Internet banking, but also contributes to the literature on the topic.

Original languageEnglish
Pages (from-to)533-548
Number of pages16
JournalSouth African Journal of Economic and Management Sciences
Issue number4
Publication statusPublished - 2016


  • Institutional trust
  • Internet banking
  • Situational normality
  • South Africa
  • Structural assurance
  • Technology acceptance model

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • General Economics,Econometrics and Finance


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