Factors influencing adoption of online banking among Malaysian youths

• Main Authors: Mohamad Noor, Nurul Huda, Wok, Saodah, Mohd Nasir, Nur Shakira
• Format: Conference or Workshop Item
• Language: English; English
• Published: 2021
• Subjects: H61.8 Communication of information
• Online Access: http://irep.iium.edu.my/94228/7/MENTION.pdf; http://irep.iium.edu.my/94228/1/792021%20-%20HUDA%20-%20Factors%20Influencing%20Adoption%20of%20Online%20Banking.pdf; http://irep.iium.edu.my/94228/
• Institution: Universiti Islam Antarabangsa Malaysia

Digital media such as online banking has grown rapidly. It has become vital in people’s life by aiding customers to conduct financial transaction digitally with convenience and flexibility. The purpose of this paper is to examine factors influencing adoption of online banking among Malaysian youths by adopting Technology Acceptance Model (TAM). Specifically, this study determined the relationship between perceived ease of use (PEOU), perceived usefulness (PU), perceived trust and security (PTAS) and online banking adoption besides finding the strongest predictor for online banking adoption. Online survey questionnaires were administered to 201 Malaysian youths on social media. The data were analyzed using Statistical Package for the Social Sciences (SPSS). The model explained 58.9% of the variance in user intention to adopt online banking. The results revealed that perceived ease of use (PEOU), perceived usefulness (PU), and perceived trust and Security (PTAS) have positive and significant impacts on online banking adoption. In addition, perceived ease of use (PEOU) emerged as the strongest predictor towards the adoption. The results of this study will give additional insight to respective bank policy makers to develop better online banking system and to communicate appropriate marketing strategies to withstand with other banking systems. It is recommended that bank policy makers to focus on the service quality, convenience, flexibility, usefulness, and security of online banking system to boost and maintain users’ confidence and loyalty in using online banking services.