Abstract:
This research investigates the intricate interplay between digital security measures, customer perceptions of security risks, and the development of effective marketing campaigns within the digital banking sector in Islamabad and Rawalpindi, Pakistan. The primary objective of this study was to explore how the implementation of security measures impacts customer trust in digital banking, with a particular focus on the mediating role of transparent communication. The investigation delved into various elements of digital banking security, such as encryption, multi-factor authentication, fraud detection systems, and secure mobile banking applications, to understand their impact on customer trust and perceptions of security risks. To achieve this, a total of 306 questionnaires were distributed to digital banking customers in these cities, ensuring a diverse representation of the target population. SPSS was employed to assess the hypotheses, providing a robust analytical framework for understanding the complex relationships between security measures, transparent communication, and customer trust in digital banking. The study's results revealed a significant indirect positive association between security measures and customer trust, mediated by transparent communication. This indicates that while security measures alone can enhance customer trust, their impact is significantly strengthened when banks effectively communicate these measures to customers. An intriguing aspect unearthed in this research is the mediating role of transparent communication in the relationship between security measures and customer trust. These findings bear particular importance for managers and marketers in the digital banking sector, emphasizing the need for the effective implementation and communication of robust security measures. By focusing on improving digital security capabilities and transparently communicating these efforts, banks can enhance the perceived security and trustworthiness of their services, leading to increased customer trust. The study recommends that organizational leadership incorporate strategies to enhance digital security attributes, such as investing in advanced encryption technologies, implementing multi-factor authentication, and ensuring proactive fraud detection systems, while also focusing on clear and transparent communication about these measures through marketing campaigns.
