The Impact of Perceived Risk on Behavioral Intention toward Mobile Banking in Pakistan: The Mediating Role of Digital Knowledge

Abstract

The adoption of mobile banking in developing countries like Pakistan remains relatively low despite the widespread availability of smartphones and internet services. This study investigates the impact of perceived risk on behavioral intention to use mobile banking among students of Thal University Bhakkar, and examines the mediating role of digital knowledge in this relationship. A quantitative approach was employed using structured questionnaires distributed to a sample of 331 students, selected through convenience sampling. Data were analyzed using correlation and multiple regression analyses, along with the Baron and Kenny method for testing mediation. The results reveal a significant negative relationship between perceived risk and behavioral intention, indicating that concerns related to security, privacy, and financial uncertainty deter mobile banking adoption. Conversely, digital knowledge was found to have a positive effect on behavioral intention, enhancing users’ willingness to adopt mobile banking. However, the mediating role of digital knowledge was not supported, as perceived risk did not significantly predict digital knowledge. These findings suggest that improving digital literacy alone may not effectively reduce risk perceptions. The study concludes with practical recommendations for banking institutions to address risk concerns more directly and promote secure and user-friendly mobile banking environments. Limitations and future research directions are also discussed.