The Role of Brand Trust Mediates the Effect of Perceived Risk and Brand Image on Intention to Use Digital Banking Service

ABSTRACT:The development of information technology has changed the business strategy of the business world including banking by placing information technology as the main element in the process of providing services. Adoption of digital banking services is very much needed in the banking business due to increasing digital access, banking business competition is getting tougher with Digital Banks and Fintech (financial technology). Banking solutions make operational cost efficiencies and implement an integrated cashless society. BRI’s digital sector performance faces challenges from competing banks and rampant digital sector banking crimes. This study aims to explain the role of brand trust in mediating the effect of perceived risk and brand image on the intention to use BRI digital banking. The sampling method used is non-probability sampling. The data collection technique was carried out by filling out a questionnaire. The analysis technique used in this study is Partial Least Square (PLS). The results of the study show that perceived risk has a negative effect on brand trust and intention to use digital banking services. This study also shows that brand image has a positive effect on brand trust and intentions to use digital banking services. This study shows the role of brand trust in a positive mediating effect of perceived risk and brand image on the intention to use digital banking services.

KEYWORDS : brand trust, perceived risk, brand image, intention to use digital banking