A Study on the Determinants that Influence on Consumer Initial Trust Toward Internet-Only Banks in Malaysia

Purpose – The purpose of this paper is to investigate internet-only banks' (IOBs) adoption by Malaysia consumers and attempt to understand the factors that influence consumers' initial trust in this type of service. Design/methodology/approach – A non-probability convenience sample of potential IOBs adopters from Malaysia was used to test a structural equation model that analysed the antecedents of initial trust and usage intentions of IOBs. Findings – This study shows the applicability of the initial trust-building model in the context of IOBs and underlines the importance of factors such as familiarity, reputation and perceived quality in the context of online banking services in Malaysia. Practical Implications – This paper provides e-banking companies with the most important factors that contribute to build the initial trust of customers. E-banks need to focus on making themselves known and promoting their brand more effectively through advertising and advocacy. Originality/value – This study contributes significantly to the marketing research related to consumer trust and brand reputation, as well as to the electronic banking literature. The results show the importance of initial trust in the context of services and the main factors that influence it, including a key branding variable such as reputation. The paper also focuses on the IOBs' adoption in Malaysia, a market understudied compared to the USA, and seeks to understand the mechanisms associated with the initial formation of Malaysia consumers' trust toward it.