Internet Banking Risk Perception: A Consumer–Centric Investigation

Availability cheap and fast internet and popularisation of gadgets lead to internet -based self service banking known as “internet banking”. With increasingly easier access to the internet, many banking customers are using Internet Banking actively. Customers usually perceive risks in conducting transactions electronically, and particularly if the transactions involve money. Risk perception can be of six different types: time risk, finacial risk, performance risk, psychological risk, safety risk & confidentiality risk. It is generally considered that risk perception could be higher for electronic banking services. This study aims to determine the levels of risk perception differences among banking customer . A survey was conducted among 250 banking customers in Malappuram District and their responses were analyzed statistically. This study showed that while customers used Internet Banking for a variety of different purposes such as to determine account balance, transfer money, or to pay invoices, etc., there was a significant relationship between the income level,sex and education level of customers and their risk perceptions. An analysis of the risk perceptions showed that security risk is the greatest perceived risk followed by financial risk.