Abstract
The purpose of the present study is to understand the factors influencing adoption of internet banking in Malaysia. A model has been proposed based on the technology acceptance model (TAM). The proposed model is referred to as extended TAM and is better suited to identify and quantify the important factors that influence adoption of internet banking (IB) technology in the country. Data were collected from 487 individuals who are either current or prospective internet banking users. Partial Least Squared (PLS) was used to identify the important factors affecting technological adoption. It is found that perceived usefulness (PU) and familiarity have a significant relationship towards the behavior of users to use IB. Perceived ease of usefulness (PEU), awareness and opportuneness on the other hand, have been identified as not having significant relationship towards the behavior of consumers to use IB in the tested mediated model. This study enables IB service providers in Malaysia to design new service offerings or modify current service offerings to achieve higher adoption rates in IB.
Highlights
Many researchers in Malaysia has put a lot of interest in studying internet banking [34], [35]
The present study concluded that perceived usefulness (PU) and familiarity have a significant relationship towards the behavior of students to use internet banking (IB)
Familiarity has shown to have a significant relationship towards behavior to use IB among students and attitude offers no mediation effect
Summary
Many researchers in Malaysia has put a lot of interest in studying internet banking [34], [35]. IB and e-banking are different in a way that e-banking is a higher-level activity that encompasses IB, and Mobile Banking, SMS Banking, ATM and other electronic payment systems that are not operated through the internet. Between both systems, IB acts as the most significant and most popular delivery channel for banking services in this era [3]. Further benefits of IB as explained by Al-Fahim [5] are cost and time savings, width of population coverage, enhancing banks‟ reputations as well as better customer experience
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