Perceived Risk and Technology Acceptance Model in Self-service Banking:A Study on the Nature of Mediation

It is accepted that self-service banking provides consumers with approachability, availability and affordability. However, the adoption of these services has not seen the growth rate that it should be. Current study provides support for these 3As (approachability, availability and affordability) being overshadowed by Perceived Risk (PR). Evidence indicated that different dimensions of perceived risk exert a strong influence within Technology Acceptance Model (TAM). The perceived risk was decomposed into five facets and Preacher and Hayes bootstrapping methodology was used to test the proposed hypothesis. Mediating analysis for financial risk indicted that Perceived Ease of Use (PEOU) and Perceived Usefulness (PU) were affecting the relationship in the model however, they were not mediating in true nature but were suppressor variables; a negative mediation was found between social risk and intention to use self-service banking. The results of the study indicated that perceived risk and its dimensions had varied but strong relationship on intention to use self-service banking. It was because of the varied nature of the relationship that current study proposes a case against using perceived risk as a one-dimensional scale. The perceived risk construct as the subdimensions had very specific nuances which practitioners need to consider.