Role of trust and customer loyalty in reducing perceived security risk in internet banking

Offering banking services in the virtual environment becomes more challenging for the marketing managers while encountering interception of security in internet banking. The purpose of this study is to probe how a loyal customer base can be built for internet banking services. The paper explores the interrelationship between the two dimensions – company orientation and customer outcomes by gauging their role in constructing customer loyalty, further reducing perceived security risk amongst the customers. The analysis supports positive relationships among customer orientation, customer service quality, customer satisfaction, trust, and customer loyalty. The results also depict that customer loyalty along with trust eventually reduces perceived security risk which is vital for further expansion of internet banking. The service providers need to offer consistent superior customer service according to the customers' needs and preferences which can result in greater levels of customer satisfaction, develop trust and customer loyalty. This will further facilitate the service providers to reduce the fear of perceived security risk by inculcating loyalty in the consumer.