Mobile Banking Adoption and its Determinants in Malaysia

Abstract

In electronic banking channels, mobile banking signifies a great innovation. Nonetheless, because of few reasons, customers are not quite sure about its usage. Numerous studies conducted regarding mobile banking adoption in different countries; however, fewer studies have been directed in Malaysia. In this study, we contributed to the research on e-banking adoption, specifically acceptance of mobile banking in Malaysia, and we enhanced our comprehension of customer’s attitude towards advanced technology system usage. Like so, it is essential to grasp the aspects impacting the intention to approve mobile banking channel in Malaysia. For the purpose, we suggested a new conceptual model by extending the Technology Acceptance Model (TAM) with new variables that are privacy risk and security risk, which also filled the research gap. The study core objective was to examine the aspects affecting individual’s attitude and behavioural intention to use mobile banking services in Malaysia. SEM technique was used through Smart-PLS3 for the analysis of data with a sample frame of 384 based on Krejcie and Morgan. The result revealed a significant and positive relationship between perceived ease of use, usefulness and attitude towards using mobile banking while a negative and significant relationship between privacy risk, security risk and attitude towards using mobile banking in Malaysia.