Abstract

This paper reports on research conducted in the Kingdom of Saudi Arabia. The research examines the trust and the security of electronic banking services in Saudi commercial banks. The design for the study used quantitative research methodology. Data were collected by means of questionnaires utilizing snowballing approach. 500 Questionnaires were distributed to banks’ respondents including Saudi and Non Saudi banks’ customers. The quantitative data presented very strong evidence to support both hypotheses that: there are significant trust differences between Saudis and Non Saudis in their use of electronic banking services comprising ATM, credit cards, mobile SMS, phone and the internet banking (p-value 0.001, 0.006, 0.004, 0.000, 0.033 respectively); and also that:there are significant security differences between Saudis and Non Saudis in their use of electronic banking services including ATM, mobile SMS, phone and the Internet banking services (p-value 0.000, 0.000, 0.000 and 0.006, respectively).Findings revealed how Saudi banks’ customers have very high trust in using the electronic banking services and also how Saudi banks’ customers strongly believed that the electronic banking services are more secure compared with their counterpart the Non Saudis. The study presents new empirical evidence, and enhances our understanding on the trust and the security of electronic banking technology in a Middle East country. The implication of this study will be vital in helping Saudi banks’ managers to assess and identify methods of improving the trust and the security of electronic banking services offered.

Key words: Electronic security, information technology, e-services trust, technological change, electronic banking, developing countries, Middle East, Saudi Arabia.