Consumer Acceptance of Internet Banking: Application of Unified Theory of Acceptance and Use of Technology

Introduction

World Wide Web (WWW) is a system of Internet server that support specially formatted documents. The function of World Wide Web is that it’s able to improve business, communication, and information, with aim to move towards the era global information technology, globalization, and regionalize (Foo & Lim, 1997). Users of World Wide Web has been increase rapidly since 1990s. According to the World Bank, users of the World Wide Web in Malaysia was about 15 million users in 2010. The World Wide Web popularity is due to several reasons such as easy accessibility, speed of access to internet facilities, commercialization opportunities, scale and distance independence, as well as low barrier to entry and equal opportunities (Foo & Lim, 1997). The World Wide Web also is the start of growth to internet banking as it gives website that able to receive visit by online user.

Internet has been rapidly growth in term of connection speed, reach and adoption. It has revolutionized business from traditional business to new channel mass communication that would grow rapidly each year. The importance of internet relatively because it is faster than traditional banking, able to access at any time with internet connection and does not required human interaction. Khong, Siong, Binshan, & Uchenna (2009) stated that user is learning and using the service facilitates by internet such as online banking transactions, electronic government, online purchases. Many countries start to adopt the internet technologies in government and private sector including Malaysia. In 2010, Internet user penetration rate is 64.7 percent with approximately 16.9 million user compare to 2000 with rate of 15 percent or about 3.7 million internet user (Khong et al., 2012).

According to Yakhlef (2001), an internet payment costs only 13 cents or less compared to traditional payment which costs about $1.08. Internet banking reduced the cost then offers the customer interaction, data mining and customisation. According to Kassim and Ramayah (2010), Maybank Berhad was the first bank that offers internet banking services in Malaysia, which then followed by other established domestic banks. In 2014, the Deputy Finance Minister Datuk Ahmad Maslan stated that there were 14.6 million registered user of internet banking as at June 2013. This activity has contributed to increase the e-commerce business inside the country because the internet banking simplify the processes for account holders at the respective bank.

The information technology is used as the main strategy in internet banking because internet or web based creates information about individual client’s transaction profile (Zuccaro & Savard, 2010). Banks promote their web site to obtain the information from the internet banking. The banks enjoy benefits such as additional transaction revenues, saving from reduced transactional costs, opportunities for acquiring new customers, and improves retain customers. This shows that banks and users have gained benefits from using internet banking, which for the internet user, the core benefit of internet banking is the convenient where their can perform transactions anywhere, anytime, faster, easier and efficient compare to traditional banking. The reduction of costs by internet makes the banking world become more efficient and effective.

In Malaysian context, Internet banking success is depending on the adoption by internet users within the country. Therefore, this study is important to know the real adoption of these technologies among citizen in Malaysia by combining the behavioural of internet banking user. This research aims to improve the information in adoption of technology specifically in Internet Banking. This information may be able to help develop countries to increase the usage of internet banking in their country.

This paper outlined a small perspective on area of technology adoption and internet banking. Then, the research framework model is described and from that, hypotheses are presented. The data is analysed to determine the results. Next, discussion of the result is presented. Finally, the limitation, implications, future research and conclusions is explained at the end of research.