EXPLORING THE IMPACT OF PRIVACY-AWARE DESIGN AND USER EXPERIENCE ON TRUST AND SATISFACTION IN E-BANKING: A QUANTITATIVE STUDY

Abstract

This study investigates how privacy-aware design and user experience (UX) features influence user trust and satisfaction in electronic banking systems. With the growing reliance on digital financial services, concerns around data security, user autonomy, and interface usability have intensified. While prior research has explored privacy or UX individually, few studies have examined their combined impact or the mediating role of user trust in this relationship. To address this gap, the study adopts a deductive, quantitative approach using a structured online survey, gathering responses from 166 e-banking users in Sri Lanka after outlier removal. The conceptual framework identifies two main factors—Privacy-Aware Design (comprising data minimization, privacy by design, and transparency and communication) and User Experience (including usability and accessibility, customer support and responsiveness, and customization and personalization). User trust is modeled as a mediating variable between these factors and the dependent variable, user satisfaction. Survey data were analyzed using SmartPLS, following PLS-SEM methodology. The measurement model demonstrated strong internal consistency and convergent validity after indicator refinement. Structural model evaluation revealed that all hypothesized relationships were significant, with transparency and communication becoming significant upon further analysis. Findings indicate that privacy and UX-centric elements significantly enhance user trust, which in turn drives satisfaction with e-banking systems. This research contributes to the literature by integrating privacy and UX into a unified empirical model and offering actionable design and policy recommendations to foster trust in digital banking environments.