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.