E-Banking Services Acceptance in Malaysia

The digital revolution of Banking Sector in Malaysia

The momentum of digital revolution of Malaysian banking system has been commenced since the end of 1970s (Pang 1995). The introduction of Information Technology in Malaysia has been a motivation factor that linked technology and banking sectors in Malaysia. Past four decades of revealed that the Malaysian commercial banks have used various delivery channels for their products and services. This includes physical headquarters and branch office networks, Automated Teller Machines (ATM), Self banking channels such as Electronic Banking Center (EBC), Virtual Kiosks, telebanking and E-Banking. Automated Teller Machines (ATM) is one of the most common forms of electronic funds transfer in Malaysian banking sector since 1981. ATM’s have helped banks to overcome time where banking hours can be extended after office hours and geographical location constrains. However, ATM operations has resulted high cost to the financial institutions and this has pushed the institutions to become the members of Malaysian Electronic Payment System (MEPS) Sdn Bhd. MEPS has provided the associate banks’ clients to access their accounts from any ATM belong to the MEPS network.