Adoption and Usage of Internet Banking 'A Technological Perspective'

Abstract

Apart from the traditional type of banking services, customers today require more personalised products and services, and able to access such services at any time and at any place. Although it is not essential for banks to stay competitive, Internet banking is one of the advanced information technologies they can be employed to achieve a high level of customer services.

This study explores the factors influencing the adoption and usage of Internet banking in technological perspective. The research commonly uses applied and empirically supported models of information technology adoption to achieve the objective. In this study technology acceptance model (TAM) is extended by two external variables, namely risk and self efficacy.

Data were collected using a survey on banking customers in a state area in Malaysia and analysed using hypotheses testing model variables. The results reveal that perceived usefulness, perceived ease of use, and self efficacy have a significant association with intention to use Internet banking. The results of this study also indicate that extended TAM model have low capabilities in explaining the variances in "users" intention to adopt or use Internet banking services.

Keywords: Internet banking, Information Technology, research, financial institutions, Malaysia