Factors Influencing Consumer Intentions to Adopt Online Banking in Malaysia

  • Aftab Pervez Khan
  • Shahnawaz Khan
  • Ivan Ang Ri Xiang

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.
Published
2017-06-30
How to Cite
KHAN , Aftab Pervez; KHAN , Shahnawaz; XIANG , Ivan Ang Ri. Factors Influencing Consumer Intentions to Adopt Online Banking in Malaysia . Business & Economic Review, [S.l.], v. 9, n. 2, p. 101-134, june 2017. ISSN 2519-1233. Available at: <http://www.bereview.pk/index.php/BER/article/view/152>. Date accessed: 05 aug. 2020.
Section
Articles