Determinants of Customer Trust in Digital Banking Services

This study aims to analyze the determinants of customer trust in digital banking services by evaluating the influence of security, privacy, service quality, perceived risk, and bank reputation. Data were collected through an online questionnaire distributed to 130 respondents, who are active users of digital banking services, such as mobile banking and internet banking. The analysis was conducted using Structural Equation Modeling (SEM) with SmartPLS 3.0 to test the relationships between these variables. The results indicate that service quality has the most significant impact on customer trust, followed by security, bank reputation, and privacy. Conversely, perceived risk was found to have a negative impact on customer trust. These findings suggest that the higher the service quality and perceived security, the higher the customer trust in digital banking services. On the other hand, concerns regarding risks, such as data theft and fraud, can decrease customer trust. This study provides practical implications for digital banking providers to enhance service quality, strengthen security measures, and protect customer privacy to build and maintain long-term customer trust.