Evaluation of cyber security awareness on customer adoption of digital transaction method: findings from United Commercial Bank Limited

Abstract

Digital banking has revolutionized the financial services industry in Bangladesh through its high rate of growth, making the financial services convenient and efficient to the customers. Nonetheless, the growing dependence on the use of digital means of transactions has also raised concerns over the risk of cyber security. The report assesses how customer adoption of digital methods of transactions at United Commercial Bank Limited (UCBL) will be affected by awareness on cyber security. The research is anchored on primary and secondary data. The primary data were collected in the form of a questionnaire survey of 10 employees and 90 customers of UCBL. The UCBL annual reports, guidelines of Bangladesh Bank, and other academic resources provided secondary data. The SPSS was used to conduct the quantitative analysis via descriptive statistics, reliability analysis, correlation, and regression analysis. The results show that there is a positive and significant correlation between cyber security awareness and customer trust and perceived security strength and influence the adoption of digital methods of transaction strongly. Even though the majority of the respondents actively use digital banking services, a significant amount of them showed only moderate levels of understanding of the cyber security threats, which puts them at risk of phishing and fraud. The reliability analysis revealed that there is acceptable internal consistency of the measurement items and the regression analysis results revealed that trust and perceived security were significant predictors of digital banking adoption. The paper has come to the conclusion that the UCBL has a well-developed digital security infrastructure; it is necessary to conduct customer education and awareness programs in order to build the trust and promote the acceptance of the digital services. To further improve the level of digital security and consumer trust, the report suggests ongoing awareness of the target market, better fraud response strategies, and enhanced best practices on vendor risk management. In general, this report offers useful ideas to banking practitioners and policy makers to enhance cyber security systems and ensure safe implementation of digital banking in Bangladesh.