Factors Influencing Behavioural Intention towards Adoption of Digital Banking Services in Malaysia

Abstract

Digital banking will be a disruptive digital transformation to Malaysians as the country is widely regarded as cash-based society. It is unknown on the factors that could influence behavioural intention towards adoption of digital banking services among Malaysian. This research aims to investigate the relationship of core constructs such as trialability, compatibility, observability, perceived usefulness, and perceived ease of use with consumer's intention to adopt digital banking services. This will be the first study in Malaysia to understand the public perception regarding digital banking service based on technology acceptance model (TAM) and innovation diffusion theory (IDT). The results obtained in this study demonstrated that perceived ease of use, compatibility and observability are important explanatory variables to influence the behavioural intention to adopt digital banking services. The study showed some practical implications that may be useful for policy makers, bankers and fintech players to design or participate in policy that can motivate adoption rate of digital banking services among Malaysian. Contribution/ Originality: This study documents the supporting evidence of key factors influencing behavioural intention towards adoption of digital banking services in Malaysia based on theoretical framework of TAM and IDT models. Digital banking allows the use of technology to conduct banking transactions in a smooth manner (Alkhowaiter, 2020) yet there remains some insufficient steps and demand-side factors prevents the uptake of cashless technology (Widjaja, 2016). Moreover, public perception of a completely new digital banking service among Malaysian is not explored in the past studies. The services offered by the financial institutions also continue

Web-based Seminar - New Source of Qualitative Study: Data Collection during the Pandemic of COVID-19

“…Based on the extracted scripts according to the experts, the observation log identified the importance of factors such as ease of use, usefulness, social influence, compatibility, trialability, security, and privacy data management that will determine the success of digital bank in Malaysia and help to penetrate market across different types of users, generations and geographical locations. This is consistent with the quantitative results which further convinced the researchers that the conceptual framework from the theoretical perspectives of both TAM and IDT could explain potential user's behavioral intention in the adoption of digital banking services (Tiong, 2020). Furthermore, the employment of triangulation method, particularly data collection from webinars as a source of the qualitative approach, has further enhanced the research data which was intended to be answered by the Digital Banking Study.…”

“…No study has addressed the use of webinar as a tool for data collection. This paper's results could enrich the data and provide additional data to verify the qualitative findings from the Digital Banking Study published previously (Tiong, 2020). Through interpretive research philosophy, this paper discusses the potential use of webinars, including the preparation, challenges, advantages, disadvantages, and limitations of the webinar as a qualitative data collection tool based on the real-time experience during the conduct of the Digital Banking Study.…”

“…The scripts placed from the webinars were recategorized into different topics based on the conceptual framework proposed in the Digital Banking Study, as shown in Figure 1. To enable us to identify the results' validity, we compared the webinar findings against the main findings collected from previously published quantitative results (Tiong, 2020). TAM and IDT theories were used as the point of reference for comparing the webinar's observation data against quantitative findings.…”

A Study of Factors Influencing Customers' Intention to use Mobile Phones for E-Payment in Klang Valley, Malaysia

“…As Komlan et al (2019) found there is a significant relationship between personal innovativeness and customers' intention in mobile money services. Moreover, Tiong (2020) found that perceived compatibility and social influence positively influence customers' intention to use digital banking services among generation Y in Malaysia. An empirical study in Saudi Arabia (Noha et al, 2021) found that user conception of perceived compatibility and facilitating condition of e-payment had a significant impact on their intention to adopt epayment.…”

Factors Affecting Intention to Use on the Digital Banking Services Offered by Digital Banks in Indonesia

“…If the application system is easy to use, users will feel un-intimidated to use it (Moon & Kim, 2001). Numerous studies have been conducted over the past few years and provide empirical evidence on the important impact of PEOU on intention to use, either directly or indirectly © IEOM Society International through its impact on perceived usefulness (Akturan & Tezcan, 2012;Amin, Rizal, Hamid, Pepper, & Anis, 2008;Gu, Lee, & Suh, 2009;Hanafizadeh, Behboudi, Abedini Koshksaray, & Jalilvand Shirkhani Tabar, 2012;Koenig-Lewis et al, 2010;Mawona & Mpogole, 2013;Noor, 2011;Tan, Leby, Tan, & Lau, 2016;Yu, 2012: Tiong, 2020Hossain et al, 2019;Tran, 2021). Other studies have shown that PEOU positively affects PU (Mutahar, Daud, Ramayah, Isaac, & Alrajawy, 2016).…”