THE FACILITATORS AND INHIBITORS OF CUSTOMER ADOPTION OF PURE INTERNET BANKING: TRUST TRANSFER AND STATUS QUO BIAS

There are three pure Internet banks in Taiwan and Line Bank accounts for more than 90% market share of pure Internet banking. In addition, despite the increasing viability of pure Internet banking, customers continue using existing banking services and results in only 10.16% of all kinds of banking services. To explore why consumers prefer one bank over others and why consumers hesitate to adopt pure Internet banking, this study considers status quo bias (habitual usage) and trust transfer in the context of LINE Bank, a company that provides its customers with comprehensive pure Internet banking services. We also theorize that intimacy with service personnel leads to the habitual usage of existing banking services, and trust in the LINE app and trust in LINE Pay affect customers' trust in LINE Bank. We also suggest that habitual usage can also reduce trust and moderates the relationship between trust in LINE Bank and usage intention. Survey data from 403 active LINE Pay and Line app users confirm that both trust in the LINE app and trust in LINE Pay exhibit positive effects on trust in LINE Bank, which in turn positively affects usage intention. In addition, intimacy enhances habitual usage, which has a negative effect on trust in LINE Bank, has a direct and negative effect on usage intention, and at the same time adversely moderates the relationship between trust in LINE Bank and usage intention.