FACTORS INFLUENCING CONSUMER’S BEHAVIOR TOWARDS THE USAGE OF INTERNET BANKING

 

Nur Hazwani Abdul Aziz¹*, Nuradli Ridzwan Shah Mohd Dali² and Syed Zamberi Ahmad³

¹Faculty of Economics and Muamalat, Islamic Science University of Malaysia, Malaysia, nurhazwani.aa@maybank.com

²Faculty of Economics and Muamalat, Islamic Science University of Malaysia, Malaysia, nuradli@usim.edu.my

³Management Department, College of Business, Abu Dhabi University, UAE, drszamberi@yahoo.com

 

Abstract

The purpose of the present study is to understand the factors influencing adoption of internet banking in Malaysia. A model has been proposed based on the technology acceptance model (TAM). The proposed model is referred to as extended TAM and is better suited to identify and quantify the important factors that influence adoption of internet banking (IB) technology in the country. Data were collected from 487 individuals who are either current or prospective internet banking users. Partial Least Squared (PLS) was used to identify the important factors affecting technological adoption. It is found that perceived usefulness (PU) and familiarity have a significant relationship towards the behavior of users to use IB. Perceived ease of usefulness (PEU), awareness and opportuneness on the other hand, have been identified as not having significant relationship towards the behavior of consumers to use IB in the tested mediated model. This study enables IB service providers in Malaysia to design new service offerings or modify current service offerings to achieve higher adoption rates in IB.

Keywords: Technology Acceptance Model (TAM), internet banking, technology adoption, technology innovation