Factors Influencing Consumer Intentions to Adopt Online Banking in Malaysia

Abstract

As the world gradually shifts to the technological age, the number of digital savvy consumers has been growing exponentially. Such trends would eventually translate to increased consumer demand for digital related services such as online banking. Since online banking offers a number of benefits to the banking sector, therefore, banks need to deeply understand the factors which influence consumer intentions in adopting online banking. This paper investigates some of the most significant factors influencing consumers' intentions to adopt online banking in the Malaysian context. A survey is conducted for this purpose and a sample of 200 respondents is chosen which includes male and females in equal proportions. Self-administered questionnaire is used for data collection. Seven factors are identified to have impact on the consumer intentions in adopting online banking. Four of them are found to have significant impact on consumer intentions which are convenience, trust, perceived ease of use, and perceived usefulness; whereas, the rest of the factors, i.e. social influence, gender and age group, do not impact consumer intentions in adopting online banking. The study has implications for banks which provide online facilities and those who plan to go online. Further, the study has implications for policy makers who intend to promote online environment as the study reveals some of the major factors which need due consideration in this respect.

Perception and prediction of intention to use online banking systems

“…Support in the developing country context. Khan, Khan, and Xiang (2017) in the study of Factors Influencing Consumer Intentions to Adopt Online Banking in Malaysia found that mainly four constructs convenience, trust, perceived ease of use, and perceived usefulness significantly impact on consumer intention to use online banking. Different studies have shown that risk affects the attitudes negatively (Zhou, Lu, & Wang, 2010) and, therefore, intention to use technology (Herrero & San Martín, 2012;Herrero Crespo & Rodriguez del Bosque, 2010).…”

Ease of use and Awareness to use as a Predictor of Confidence in E-Banking Leading to Adoption of E-Banking: The Case of Islamic Banks in Pakistan

“…Such factors might affect the utilization of e-banking technique by the consumers. This study adds on to theoretically missing link identified by Khan et al (2017).…”

“…All of the results are justifying the gap identified by Khan et al (2017); Islamic Banks need to create awareness among their customers regarding use of e-banking for making the best use of services for the customers and resource saving for the banks themselves.…”

“…According to Cheah et al (2011) certain factors like perceived usefulness and perceived ease of use of software and website are considered as pillars while studying the adoption attitudes of customers regarding e-banking. Khan, Khan, and Iar (2017) studied factors like convenience, trust, perceived ease of use, perceived usefulness, social influence, gender and age and their impact on utilization of e-banking technique by the customers of Malaysia. Pikkarainen, Karjaluoto, and Pahnila (2004) suggested that adoption of e-banking technique by customers could be predicted by using technology acceptance model as proposed by Davis (1989).…”

Analysis of E-Banking Acceptance in Oman: The Case of Islamic Banks’ Customers

“…In a different context, Khan, et al (2017) studied the factors leading to customers' intention to use E-banking services in Malaysia. The study covered a sample of 200 respondents.…”