Is Digital Trust Irrelevant in Digital Banking Adoption? Examining the Role of Digital Security Risk in Gauteng

Abstract

This study examines the key factors influencing digital banking adoption in Gauteng, South Africa, with a particular focus on digital trust and digital security risk. It aims to analyse the relationships between these variables and their impact on user adoption. A quantitative research approach was employed, utilising self-administered online and paper-based surveys to collect data from 393 participants. Structural equation modeling (SEM) was used for data analysis, supplemented by a comprehensive review of relevant literature on digital banking adoption in South Africa and other developing economies. The findings indicate a significant negative relationship between adoption and digital security risk, highlighting security concerns as a major barrier to adoption. However, no significant relationship was found between adoption and digital trust, suggesting that trust perceptions may not be a primary driver of digital banking adoption in this context. The study recommends that banks implement robust security measures to enhance user confidence, ultimately supporting financial institutions and policymakers in strengthening digital banking ecosystems for sustainable growth and customer engagement.