E-Banking and Customer Preferences in Malaysia: An Empirical Investigation

Abstract

This paper examines the current trends in the e-commerce revolution that has set in motion in the Malaysian banking sector and reports on an empirical research that was carried out in Malaysia to study the customers' preference for electronic banking and the factors, which they considered influenced the adoption of electronic banking. Results based on the analysis of data relating to 300 respondents indicate that while there is no significant differences between the age and educational qualifications of the electronic and conventional banking users, some differences exist on other demographic variables. Analysis further reveals that accessibility of Internet, awareness of e-banking, and customers' reluctance to change are the factors that significantly affected the usage of e-banking in Malaysia. The paper discusses on the implications of these. Limitations of the study are highlighted and further research directions are suggested.