Dimensionality of Perceived Risk and Its Impact on Internet Banking Adoption: An Empirical Investigation

Over the last two decades, plethora of research has been done to explore the factors affecting the individual adoption of Internet banking. All have discussed most of the influential factors affecting the Internet banking adoption including perceived usefulness and perceived ease of use. But the concept of perceived risk and its dimensions have rarely been discussed in the context of Internet banking acceptance. Considering this gap in previous studies, this article makes an effort to explore the internal and external dimensions of perceived risk along with their impact on Internet banking adoption. Data was collected from 362 non-Internet banking users through a questionnaire. After identifying the risk dimensions, a multiple regression analysis was performed to examine the impact of these dimensions on Internet banking adoption. The findings support the hypotheses that both intrinsic risk (i.e., computer self-efficacy) and extrinsic risk (i.e., key dimensions of perceived risk such as privacy, security, social, and performance) exert a significant influence on Internet banking acceptance behavior.