The impact of cyberattacks awareness on customers’ trust and commitment: an empirical evidence from the Pakistani banking sector

Abstract

Purpose The banking industry has always been vulnerable to cyberattacks. In recent years, Pakistan’s banking sector experienced the most intense cyberattack in its over 70-year history. Due to these attacks, a large number of debit card accounts of major banks were negotiated. This study aims to examine the impact of cyberattack awareness and customers’ commitment levels after these cyberattacks. Design/methodology/approach The study integrated the commitment–trust theory framework for the relationship of trust and commitment to the usage of online banking services. The partial least square structural equation modeling is being used to explore the relationship between customer’s trust, which is an outcome of continuous usage, and customer perception of affirmative cybersecurity measures the bank. Findings The findings revealed that customer trust in online banking is positively associated with customer commitment, but customers’ cyberattack awareness negatively impacts customer trust and commitment to online banking. Practical implications The study highlights the importance of proactive communication, transparency and robust incident response that helps organizations establish themselves as trustworthy entities while prioritizing customer information and transaction protection. Originality/value The authors report on how cyberattacks on the banking sector influence the trust and commitment of the customers in the sector. The variable of cyberattack awareness used in this study is novel in online banking literature.