Security perception of e-banking users in India: an analytical hierarchy process

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When choosing online financial transactions, security is a paramount concern of users. Three categories of banks in India, namely public, private and foreign banks, have a completely different focus on technology and capabilities. The study aims at investigating e-banking users’ perception with regard to online risk for public, private and foreign banks. Online risk perception for the abovementioned banks was assessed on three major risk parameters, i.e. security aspect, privacy aspect, and trust; using a multiple-criteria decision-making tool, called the Analytical Hierarchy Process (AHP). The outcomes indicate that security risk is paramount among various aspects of perceived risk, followed by privacy and trust concern. Moreover, public sector banks are perceived to be the safest in this aspect. Public sector banks are also considered to be benign in terms of privacy and trust. Given the general user’s perception of risk generated by all the three risk parameters taken together, public sector banks are perceived to be the most secure, followed by private and foreign banks. The findings of this study have various implications for both research and practice. Private and foreign banks in India may adopt appropriate marketing strategies to achieve a favorable perception. Various studies have been conducted earlier on these factors and their interrelationship, but limited research has been carried out to demonstrate the importance of each of these factors in relation to the other as perceived by the user. Moreover, the study quantifies factors in order of their importance.

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    • Figure 1. Consumer perceptions towards information security risk for public, private and foreign banks
    • Figure 2. Weighted scores of consumer perceptions towards information security risk for public, private and foreign banks
    • Table 1. Saaty’s scale (1-9) for pairwise comparison
    • Table 2. Random inconsistency indices for n = 10 (Saaty, 1980)
    • Table 3. Pairwise comparison matrix of various aspects of security risk
    • Table 4. Pairwise comparison matrix of various aspects of privacy
    • Table 5. Pairwise comparison matrix of various aspects of security
    • Table 6. Pairwise comparison matrix of various aspects of trust
    • Table 7. Normalized weighted scores of various aspects of security risk
    • Table 8. Normalized weighted scores of various aspects of privacy
    • Table 9. Normalized weighted scores of various aspects of security
    • Table 10. Normalized weighted scores of various aspects of trust
    • Table 11. E-banking users’ perception for various types of banks based on weighted score of selected criteria