Users' adoption of e‐banking services: the Malaysian perspective

Abstract

PurposeThe purpose of this paper is to explore the determinants of users' adoption momentum of e‐banking in Malaysia.Design/methodology/approachA questionnaire with four‐point Likert scale is applied to 324 usable responses. Ten attributes are tested, namely convenience of usage, accessibility, features availability, bank management and image, security, privacy, design, content, speed, and fees and charges.FindingsResults indicate that all elements for ten identified factors are significant with respect to the users' adoption of e‐banking services. Privacy and security are the major sources of dissatisfaction, which have momentously impacted users' satisfaction. Meanwhile, accessibility, convenience, design and content are sources of satisfaction. Besides, the speed, product features availability, and reasonable service fees and charges, as well as the bank's operations management factor are critical to the success of the e‐banks. WAP, GPRS and 3G features from mobile devices are of no significance or influence in the adoption of e‐banking services in this study. Results also reveal that privacy, security and convenience factors play an important role in determining the users' acceptance of e‐banking services with respect to different segmentation of age group, education level and income level.Research limitations/implicationsThe use of convenience sampling in this study weakens research objectivity. This study excludes the voice of non‐users and non‐users' views should be taken into account in future study.Practical implicationsThe results are expected to provide a practical contribution in the area of retail banking and in understanding consumer behavior in the Malaysian business‐to‐business financial services industry.Originality/valueThis paper is the extension of an earlier study by Suganthi et al. which identified seven factors affecting the adoption of internet banking, with 17 elements. This study examines a wider scope of factors that consist of ten attributes with 78 elements based on the extant literature.

Role of consumer personality in determining preference for online banking in India

“…Thus, other than the personality dimensions, we feel that age of the consumers also plays a signifi cant role in adoption of online banking. 14,17,18 If the sample had various age groups equally represented we believe our results may have been different. There is large representation of younger generation in the sample, which makes it biased.…”

“…Research conducted on the adoption of online banking in other developing countries recommends that awareness towards online banking infl uences consumers ' acceptance and use of the services. 15,17,18,44,68 The consumers ' attitude towards online banking is not only governed by environmental issues, but also psychological attributes. The differences in personality of the consumers may motivate or demotivate them to try new services.…”

Customer’s Adoption of Mobile-Commerce A Study on Emerging Economy

“…Perceived usefulness and perceived ease of use is significant factors affecting acceptance of an information system or new technologies. Prior research has empirically found positive relationship between perceived ease of use and perceived usefulness as critical factors on the use of e-banking [31], [37][38][39]. Hence an application perceived to be useful perceived to be easier to use than another is more likely to be accepted by users.…”

“…Perceived usefulness, security and privacy are the main perusing factors to accept online banking system [20]. According to a study WAP, GPRS and 3G features from mobile devices are of no significance or influence in the adoption of e-banking services [31].…”

The Impact of Cost, Customer Experience, Ease of Use, and Trust towards Adoption of Online Banking

“…Healy (1999) revealed that long-term customers are less sensitive of the price changes. This was supported by Poon (2007) of which more than 60 percent of the Malaysians are aware of the annual fee, but would continue to use the services.…”