Understanding Security in Consumer Adoption of Internet Banking

Abstract

As a continually growing financial service of electronic commerce, Internet banking requires the development and implementation of a sound security procedure. The existing literature highlights security as the primary factor which determines the adoption of Internet banking technology. The secondary information on Internet banking development in Malaysia shows a very slow growth rate. Much literature states that Malaysian consumers strongly agree that they are slow to adopt Internet banking because of a lack of security and reliability of transactions over the internet. The major factors affecting the adoption of Internet banking in Malaysia involve security, risk, and trust. Since biometrics technology has also been implemented in certain government departments, the issues such as new and impossible to implement in other areas should not occur and technology is growing to enhance the security level of the authentication system. Clearly, in order to grow consumer Internet banking demands, banks must make key improvements that address these consumer concerns.