Developing customer positive word-of-mouth and loyalty in mobile banking services by considering the role of trust and security

Abstract

The number of people involved in electronic commerce is growing. Mobile banking, which was introduced by developing mobile technology, is a newly adopted technology in electronic commerce. Mobile banking is accepted as part of the daily lives of people, but focusing on merely adopting this technology is insufficient. Managers should go far beyond to increase the number of their customers. In addition, increasing the number of customers in an online business without considering several factors is difficult. Therefore, the importance of investigating the development of customer loyalty and positive word-of-mouth (WOM) as two major concerns of online managers is remarkable. Trust and security are the two principal technical factors cited by most researchers in adopting mobile banking needs. Several studies have focused on the relationships between customers and banks through mobile technologies, but research that analyzes the formation of both concepts is scant. Hence, this paper investigates the relationship of security and trust for developing customer loyalty and positive WOM in mobile banking services. Data are collected from mobile banking users in Malaysia through questionnaires. The data are subsequently analyzed through SPSS and LISREL software. Results indicate a direct and positive relationship between security and trust in developing customer loyalty and positive WOM.