Internet Banking Challenges Among Customers in Selangor, Malaysia

Abstract

Internet banking has been established a long time ago. All financial institutions particularly in Malaysia have developed secured online banking portals in line with the current trend of the industry. However, customer’s acceptance towards internet banking is still a widely debatable issue. This study aims to investigate if factors such as security, price, perceived ease of use and customer resistance to change influences customers adoption of internet banking services. Questionnaire survey approach for data collection was adopted in this study. The responses of 120 respondents who visited bank branches in Kota Damansara area were collected using convenience sampling method. The results of this study showed that hypotheses pertaining to security, price and perceived ease of use were supported but customer resistance to change was not supported. As compared to other factors, perceived ease of use is the strongest factor that influences the adoption of internet banking services, followed by price, customer resistance to change and security. The result also revealed that young adults are more likely to adopt internet banking. There are several limitations in this study that needs to be considered. First, the scope of this study was limited to the banking outlets in a particular area, which was Kota Damansara, Selangor and not Malaysia as a whole. Second, the outcome that was obtained from the questionnaires may not be accurate because some respondents did not answer the questionnaire seriously. Furthermore, this study only involved a small number of respondents due to time constrain and the study only included the adopters of internet banking services and excluded the non-adopters. Last but not least, the factors chosen for this research may not cover all possible factors that influences customer’s adoption of internet banking services. The findings presented in this research can be of assistance to customers especially those non-adopters of internet banking by providing them a deeper understanding of internet banking services and it would also help banks to identify the customer’s perception and the level of customer’s satisfaction towards internet banking services.