Online Banking for the Ages: Generational Differences in Institutional and System Trust

Abstract

Purpose

The study examines how two types of trust – institutional and system trust – predict online banking intentions (OBI) as a function of generational cohort membership.

Methodology/approach

The study uses a cross-sectional survey of 559 U.S. Amazon Mechanical Turk (MTurk) members using quota sampling from three generational groups: SGI (born before 1946), older boomer (born 1946–1954), and millennial (born 1977–1992).

Findings

Results showed generational cohort differences in system and institutional trust as well as OBI. Serial mediation model results showed the model where institutional trust precedes system trust best explains the relationship between generational cohort membership and OBI.

Research limitations

While diverse, the sample comprised of MTurk workers and relied on self-report measures of behavioral intentions, thus limiting the generalizability of our findings.

Implications

This study introduces two levels of e-trust into the technology acceptance literature and provides a guideline for financial institutions and system designers to understand the role of trust in driving online service adoption and use for different generations.

Originality/value

This study explores generational differences in technology use with special focus on older adults, which is yet to be fully explored in the literature. This study differentiates between two levels of e-trust and explores the order in which both trust types mediate the relationship between generational cohort membership and OBI.

Citation

Alhabash, S., Jiang, M., Brooks, B., Rifon, N.J., LaRose, R. and Cotten, S.R. (2015), "Online Banking for the Ages: Generational Differences in Institutional and System Trust", Communication and Information Technologies Annual (Studies in Media and Communications, Vol. 10), Emerald Group Publishing Limited, Leeds, pp. 145-171. https://doi.org/10.1108/S2050-206020150000010006