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Abstract
This study focuses on the adoption of retail internet banking among consumers in the Klang Valley, Malaysia and the impact of demographics factors on such adoption behavior. This study adopts a quantitative approach using surveys conducted at banks. The results indicate that while the hypotheses pertaining to gender, race, income, educational level and occupation were not supported but age is supported. Therefore, the current research indicates that the age of retail banking consumers affects the adoption of internet banking among Malaysian consumers. The result also suggests that consumers in the age group below 25 years old are the major contributor to the differences. Based on these findings, we conclude that younger consumers are more likely to adopt internet banking. Therefore, the result suggests implications for retail bankers in Malaysia to adopt appropriate strategies to encourage retail internet banking for other age categories of consumers in Klang Valley. By doing so, it enables the banks in Malaysia to save costs of maintaining physical distribution systems through providing bigger scale of Internet retail banking services.
Key words: Retail Internet Banking, Internet Banking Adopters, Internet Banking Non-adopters, Demographic Factors, Consumers.
© Jayaraman Munusamy, Eernest Cyril De Run, Shankar Chelliah and Sanmugam Annamalah, 2012
INTRODUCTION
As of September 2009, the Malaysian commercial banking system consists of twenty two banks out of which nine are locally owned (Bank Negara Malaysia 2009). The electronic revolution in Malaysian banking industries started in the 1970's, followed by most widely use technology to-date namely Automated Teller Machines (ATM) introduced in 1981 and tele-banking in the 1990's. In view of globalization and opportunities offered by Internet banking, the Malaysian government provided its first regulatory framework and approval for internet banking to locally owned commercial banks effective 1st June, 2000. Maybank was the very first bank in Malaysia to offer internet banking commencing 15th June 2000 (Suganthi, Balachandher & Balachandran, 2001; Dauda, Asirvatham, & Raman, 2007). A review of the Malaysian banking websites indicated that Alliance Bank, Ambank, CIMB, EON, Hong Leong Bank, Maybank, RHB Bank, Public Bank, Citibank, OCBC, Standard Chartered, United Overseas Bank and HSBC Bank are currently providing retail online banking. All Malaysian domestic banks have internet banking services.
There are numerous studies on adoption of internet banking that which mostly...