THE FACILITATORS AND INHIBITORS OF CUSTOMER ADOPTION OF PURE INTERNET BANKING: TRUST TRANSFER AND STATUS QUO BIAS

ABSTRACT

There are three pure Internet banks in Taiwan and Line Bank accounts for more than 90% market share of pure Internet banking. In addition, despite the increasing viability of pure Internet banking, customers continue using existing banking services and results in only 10.16% of all kinds of banking services. To explore why consumers prefer one bank over others and why consumers hesitate to adopt pure Internet banking, this study considers status quo bias (habitual usage) and trust transfer in the context of LINE Bank, a company that provides its customers with comprehensive pure Internet banking services. We also theorize that intimacy with service personnel leads to the habitual usage of existing banking services, and trust in the LINE app and trust in LINE Pay affect customers’ trust in LINE Bank. We also suggest that habitual usage can also reduce trust and moderates the relationship between trust in LINE Bank and usage intention. Survey data from 403 active LINE Pay and Line app users confirm that both trust in the LINE app and trust in LINE Pay exhibit positive effects on trust in LINE Bank, which in turn positively affects usage intention. In addition, intimacy enhances habitual usage, which has a negative effect on trust in LINE Bank, has a direct and negative effect on usage intention, and at the same time adversely moderates the relationship between trust in LINE Bank and usage intention.

KEYWORDS:

• Adoption
• facilitators
• habit
• inhibitors
• intimacy
• pure internet banking
• status quo bias
• trust transfer

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Chao-Min Chiu

Chao-Min Chiu is Professor in the Department of Information Management at the National Sun Yat-sen University, Taiwan. He holds Ph.D. in management from the Rutgers University. His research interests include electronic commerce, virtual communities and research methodology. His research has appeared in Internet Research, Journal of the Association for Information Systems, Decision Support Systems, European Journal of Information Systems, Information Systems Journal, Information and Management, International Journal of Human-Computer Studies, International Journal of Information Management, Computers and Education, Electronic Commerce Research and Applications and others.

Paul Jen-Hwa Hu

Paul Jen-Hwa Hu is David Eccles Chair Professor at the David Eccles School of Business, the University of Utah. He received his Ph.D. in Management Information Systems from the University of Arizona. His current research interests include information technology for health care, business analytics, technology implementation and management, digital transformation, technology-empowered learning and knowledge community. Hu has published in Journal of Organizational Computing and Electronic Commerce, Management Information System Quarterly, Information Systems Research, Journal of Management Information Systems, Journal of the AIS, Decision Sciences, Decision Support Systems, Journal of Medical Internet Research, and various IEEE and ACM journals and transactions

Jack Shih-Chieh Hsu

Jack Shih-Chieh Hsu is Professor at the Department of Information Management, National Sun Yat-sen University, Taiwan. He received his Ph.D. in management information systems from the University of Central Florida. He has had articles published in Information Systems Research, Decision Sciences, Information Systems Journal, Information and Management, Decision Support Systems, Journal of the Association for Information Systems and others. His research interests include various behavioral issues in electronic commerce, information security and software project management areas.

Yen-Chun Lin

Yen-Chun Lin received her master’s degree from the Department of Information Management at National Sun Yat-sen University, Taiwan. She is currently working in industry.