Offline and online banking – where to draw the line when building trust in e-banking? Kenneth B. Yap University of Western Australia, Perth, Australia, and David H. Wong, Claire Loh and Randall Bak Curtin University of Technology, Perth, Australia Abstract Purpose – The purpose of this paper is to examine the role of situation normality cues (online attributes of the e-banking web site) and structural assurance cues (size and reputation of the bank, and quality of traditional service at the branch) in a consumer’s evaluation of the trustworthiness of e-banking and subsequent adoption behaviour. Design/methodology/approach – Data were collected from a survey and a usable sample of 202 was obtained. Hierarchical moderated regression analysis was used to test the model. Findings – Traditional service quality builds customer trust in the e-banking service. The size and reputation of the bank were found to provide structural assurance to the customer but not in the absence of traditional service quality. Web site features that give customers confidence are significant situation normality cues. Practical implications – Bank managers have to realise that good service at the branch is a necessary condition for the promotion of e-banking. They cannot rely on bank size and reputation to “sell” e-banking. Originality/value – This is the first study that examines how traditional service quality and a bank’s size and reputation influences trust in e-banking. Keywords Trust, Customer services quality, Electronic commerce, Banking Paper type Research paper Introduction Online banking, also commonly known as internet banking or e-banking, has experienced phenomenal growth in recent years. In 2006, Pew Internet and American Life Project reported that nearly half of internet users in the United States – 63 million adults – bank online (Fox and Beier, 2006). Nonetheless, the authors note that the growth rate in e-banking has not kept pace with that of internet usage and attribute this gap to the lack of trust among bank customers, particularly among internet users age 65 and older. News headlines about e-mail scams, identity theft, and “phishing” that undeservedly distort consumer perceptions may be one of several reasons why such a lack of trust persists (Gerrard et al., 2006). The authors of this study propose that this lack of trust can be overcome with a better understanding of factors that can boost customers’ trust for e-banking. It is important for bank managers to understand that trust has to be developed and they can do so with a combination of traditional and online measures. This proposition is particularly pertinent in the current context because e-banking features prominently in The current issue and full text archive of this journal is available at www.emeraldinsight.com/0265-2323.htm Offline and online banking 27 Received March 2009 Revised October 2009 Accepted October 2009 International Journal of Bank Marketing Vol. 28 No. 1, 2010 pp. 27-46 q Emerald Group Publishing Limited 0265-2323 DOI 10.1108/02652321011013571