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Factors Influencing Consumer Intentions to Adopt Online Banking in Malaysia

Author

Listed:
  • Aftab Pervez Khan

    (Institute of Management Sciences, Peshawar)

  • Shahnawaz Khan

    (Institute of Management Sciences, Peshawar)

  • Ivan Ang Ri Xiang

Abstract

As the world gradually shifts to the technological age, the number of digital savvy consumers has been growing exponentially. Such trends would eventually translate to increased consumer demand for digital related services such as online banking. Since online banking offers a number of benefits to the banking sector, therefore, banks need to deeply understand the factors which influence consumer intentions in adopting online banking. This paper investigates some of the most significant factors influencing consumers’ intentions to adopt online banking in the Malaysian context. A survey is conducted for this purpose and a sample of 200 respondents is chosen which includes male and females in equal proportions. Self-administered questionnaire is used for data collection. Seven factors are identified to have impact on the consumer intentions in adopting online banking. Four of them are found to have significant impact on consumer intentions which are convenience, trust, perceived ease of use, and perceived usefulness; whereas, the rest of the factors, i.e. social influence, gender and age group, do not impact consumer intentions in adopting online banking. The study has implications for banks which provide online facilities and those who plan to go online. Further, the study has implications for policy makers who intend to promote online environment as the study reveals some of the major factors which need due consideration in this respect.

Suggested Citation

  • Aftab Pervez Khan & Shahnawaz Khan & Ivan Ang Ri Xiang, 2017. "Factors Influencing Consumer Intentions to Adopt Online Banking in Malaysia," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(2), pages 101-134, June.
    • Handle: RePEc:bec:imsber:v:9:y:2017:i:2:p:101-134
    DOI: dx.doi.org/10.22547/BER/9.2.5
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    File URL: http://imsciences.edu.pk/files/journals/2017-vol-2/New%205.pdf
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    References listed on IDEAS

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    Cited by:

    1. Sk Alamgir Hossain & Yukon Bao & Najmul Hasan & Md Farijul Islam, 2020. "Perception and prediction of intention to use online banking systems: An empirical study using extended TAM," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(1), pages 112-126, January.
    2. L. Garekwe & S. J. Ferreira-Schenk & Zandri Dickason-Koekemoer, 2024. "Modelling Factors Influencing Bank Customers’ Readiness for Artificial Intelligent Banking Products," International Journal of Economics and Financial Issues, Econjournals, vol. 14(1), pages 73-84, January.
    3. Giao, Ha Nam Khanh & Vuong, Bui Nhat, 2020. "A model of Factors Influencing Behavioral Intention to Use Internet Banking and the Moderating Role of Anxiety: Evidence from Vietnam," OSF Preprints 3rgh6, Center for Open Science.

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