OLOVEZE, Ambrose Ogbonna
Department of Marketing
Michael Okpara University of Agriculture, Umudike
emrysoloveze@gmail.com
AHAIWE, Emmanuel Onyedikachi
Department of Marketing
Michael Okpara University of Agriculture, Umudike
OKEKE, Damian Chibuike,
Department of Economics
Michael Okpara University of Agriculture, Umudike
Chibuikeokeke@yahoo.com
OGBONNA, Chinweike
Regional Manager, Peace Mass Transit, Aba, Nigeria
ABSTRACT
Privacy concerns are critical considerations in consumers’ relationship with businesses. Consumers
consider it an exclusive area that they should control and scarcely reveal without some level of
assurances. Innovations like open banking face challenge of success because customers’ permissioned
data are a pre-requisite to its success. Rising data breaches, customers fear for loss of privacy and finance,
exposure to risk are major challenges to the success of open banking. This study examined the effect of
customers’ privacy concern on intention to adopt open banking. Privacy concern was approached as a
multi-dimensional construct consisting perceived risk, perceived security and perceived trust. 478 test
units were pooled from students with operational bank accounts using structured questionnaire.
Confirmatory factor analysis and structural equation modeling was adopted. The result reveals that
perceived security is the strongest antecedent to adoption of open banking. The study recommends that
strict regulations with extreme punitive measures are required to ensure strict compliance by banks and
third parties.
Keywords: Open banking, data protection, privacy concerns, bank innovation, digitalisation