The role of consumer innovativeness and perceived risk in online banking usage

Purpose - The purpose of this paper is to analyse how consumer innovativeness can be used as a variable to positively influence internet banking adoption both directly and reducing consumer perceived risk. Design/methodology/approach - The impact of innovativeness and risk on internet banking adoption has been tested through structural equation modelling techniques. The sample consists of 511 Spanish internet banking services users accessed through an internet survey. Risk has been measured as a formative construct. Findings - Results reveals consumer innovativeness as a key construct to improve e-banking adoption both directly and by its effective role in reducing consumer risk perception of using internet channel in the financial services context. Practical implications - Practical guidelines are provided to bank managers on how to use consumer innovativeness level as a segmentation variable to increase the use of internet banking among actual customers who are non users or light users of the electronic channel. Originality/value - There is a lack of studies which connect consumer innovativeness and perceived risk in the electronic commerce context and specially on e- banking research. Formative configuration of risk is quite an innovative approach to measure this construct.