Abstract
This study presents the results of research undertaken to investigate a complex conundrum of information security within virtual banking systems. The results are reported progressing through five methodically developed chapters that collectively bridge theoretical understanding with practical solutions. The research journey commenced by identifying critical knowledge gaps regarding how information security threats are exacerbated as financial institutions transition from traditional to virtual banking, creating a conundrum of choice between sound information security practices and usability of these innovative technologies within banks. This initial exploration revealed the significant yet overlooked relationship between information security, innovation, usability, and regulatory compliance. Framed through a socio-technical lens, this study conceptualises virtual banking security as a multifaceted and multidimensional problem that involves competing information security, technology innovation, and customer trust interests. To address these complexities, the research adopts an innovative mixed-methods approach that combines the Straussian grounded theory method (GT) with Peter Checkland’s Soft Systems Methodology (SSM), enabling both granular analysis of information security practices and holistic understanding of virtual banking ecosystems. This hybrid approach facilitated rigorous qualitative data collection while maintaining stringent ethical standards and transparency in coding processes. The findings reveal that user trust operates as the central mediating factor in resolving this security-usability tension. Crucially, the study demonstrates that security is perceived not merely through technical efficacy, but through experiential factors such as transparency, perceived control, and seamless integration into the user journey. The study's pivotal contribution that emerged is known as the Trust-Responsive Security Architecture (TRSA) framework, that represents these inherent tensions faced by virtual banks, where, on one hand, too much security may lead to complexity, friction, and reduced usability, which may potentially erode trust. The research suggests that by applying TRSA, virtual banks can prioritise user-centric design, which can foster trust, usability, and regulatory compliance. It is envisaged that the research will add new insights to both academic discourse and industry practice by redefining virtual banking information security needs.