Perceived Risk Factors Influence on Intention to Continue Using Internet Banking among Malaysians

Abstract

The objective of the present study is to identify which are the risk factors that influence the intention to continue using Internet banking in Malaysia. The primary participants are personal Internet banking users in Peninsular Malaysia. Data was collected through a self-administered questionnaire which employed the drop-off and pick-up (DOPU) technique. The questionnaires were distributed through this method to the respective bank branch managers who were willing to distribute to their customers. A total of 413 respondents completed the questionnaires as requested. The SPSS statistical analysis package and partial least squares were used for data analysis and hypothesis testing. The results show that social risk, time loss risk, opportunity cost risk and perceived usefulness are significant factors influencing attitude towards intention to continue using Internet banking. Attitude is a significant factor that influences the intention to continue using Internet banking in Malaysia. Other relationships hypothesized are not significant. The total numbers of respondents were 413 and may not represent the whole population. Furthermore, the profiles of respondents were confidential and not disclosed by the management of the banks. As such, the total number of Internet banking customers for each bank was unknown. The findings of this study are expected to be of great use to the Internet banking providers. An understanding of the factors identified in this study allows Internet banking providers to enhance the services in the most effective and efficient way to increase bank business in the long run and encourage their bank customers’ to continue using Internet banking.