Factors that affect the usage of internet banking in Selangor / Katijah Mohamad Zubir

Technological developments, specifically in the area of telecommunications and information technology, transform the banking industry. One part of this which is growing rapidly is Internet banking. In Malaysia, the usage of Internet banking, which started about 14 years ago, has been well accepted by consumers. For banking industry, Internet banking acts as a vital strategy for banks and financial institutions to keep customer loyalty and remain competitive. However, several risks arise by using internet can also affect customer’s adoption of Internet banking.

This research was concentrated on the factors that affect the usage of Internet banking and was carried out at Selangor arrears, specifically in Shah Alam, Klang, Petaling Jaya and Subang Jaya, which focused on the users of Internet banking. This research also looked at several factors that can affect the usage of Internet banking which include convenience, Internet access, perceived risks, and demographic characteristic.

This is an exploratory research and 200 questionnaire surveys were distributed to the Internet banking users. The Findings reveal that convenience, perceived risks, and demographic characteristic have an impact on the usage of Internet banking in Selangor. The results also reveal that consumers in the young age and female are more likely to use the Internet banking.
The results of this research will give benefits to the banks and financial institutions to implement efficient service to increase the rate of Internet banking user, increase their competitive advantage, and boost revenues. Furthermore, this research will provides useful information for future researchers who observe the links between customers’ decision making and Internet banking.