The trend is not isolated in developed countries but also is taking place in developing and less developed countries. The widespread of Internet Banking is probably due to its benefits. In Malaysia internet banking was officially allowed by the Malaysian Central Bank on June 1, 2000. Malayan Banking Berhad (Maybank) was the first bank to offer internet banking in Malaysia so called Maybank2U. Currently, most major banks in Malaysia offer internet banking services. Researchers have applied many theories to predict factors that influence individuals to use Internet Banking.
The technology acceptance model (Davis, 1989), the theory of reasoned action (Fishbein&AJzen, 1975), the theory of planned behavior (AJzen, 1991), the innovation diffusion theory (Rogers, 1995), and the decomposed theory of planned behavior (Taylor & Todd, 1995) have been successfully forecast the factors that influence individuals to use Internet banking. The theories have contributed significantly in providing strategic guides to respective institutions to enhance the adoption of Internet banking. 2. OBJECTIVE The purpose of this paper is to looks at factors that influence banking customers’ ntention to use Internet banking.
The emphasis is on the impact of cultural trait against the intention to use the technology. Using Technology Acceptance Model (TAM) and trust literature, the study investigates the influence of perceived ease of use, perceived usefulness, and trust on the intention to use Internet banking among the Malay and Chinese Malaysian ethnic groups. The respondents of the study were sstudents. They were divided into two groups based on their ethnic background to see whether is there any salient different in the factors that influence the intention to use he internet banking between the groups.
It was assumed that individual differences which are connected with the ethnic group may influence factors that affect the intention to use the technology. Further testing of the regression coefficients reveal important cultural traits that may explain the differences in the level of influence of each attribute on the intention to use. It is suggested that different cultures may have been sole factor in influencing the use of internet banking. uan tatlve ana The choice of using qualitative, quantitative or both methods should depend upon hat the research aims to find out.
Therefore, the research’s questions, aims and objectives determine which method should be used. 3. 1. 1 Quantitative Method Being value-free is also another attribute of the quantitative approach. This enables the research to analyze the findings objectively as the quantitative method objectively reports reality, whereas the qualitative method can be influenced. This research uses the quantitative approach through statistical analysis as a measuring instrument to scale the magnitude of variables.
By using this, the study is able to iscover not only the variables that participants are concerned about, but also can find to What extent’ participants are concerned about particular variables. Moreover, the quantitative approach is a suitable method for gathering demographic information as well. 3. 1. 2 Qualitative Method Qualitative research is a process of enquiry that draws data from the context in which events occur. The key issue here is that the meaning of events, occurrences and interaction can be understood only through the eyes of actual participants in a specific situation.
This study uses the qualitative approach in order to explore the ationale behind the quantitative findings. The flexibility of the qualitative approach assists the study in providing a meaning, relation, and logic for each numerical figure. 3. 2 Type Of Theories That Use For This Research This Journal is made based on three major theories that influence the two major ethnic Malay and Chinese in using internet banking. The theories are:- Technology Acceptance Model (Davis,1989) Trust (McKnight and Chervany,2001) Culture (Hofstede,1980) 3. 2. Technology Acceptance Model (Davis,1989) TAM describes those two major important things that determine customers to use nternet banking are based on:- 1 . i. Perceived Usefulness: The extent to which a person believes that using a particular system will enhance his or her Job performance. This behavior is significant and influential with the attitude of the user. 1 . ii. Perceived Ease of Use: The extent to which a person believes that using a particular system will be a free of effort Significant with the use of the web usage 1 . iii.
External Variable: otner Tactors tnat Innuence percelvea useTulness ana percelvea ease 0T use. IA also mentioned that the intention to use internet banking is adversely affected by the ecurity enhancement and privacy risk ppolicy, as well as financial risk. Those factors are positively affected by the perceived benefit, attitude, and perceived usefulness. 3. 2. 2 Trust (McKnight and Chervany,2001) Trust is complicated due to the wide spectrum of approaches that define and describe it. Beside that, trust enables different parties to interact spontaneously and help the economy to operate smoothly.
When an individual trusts a person, he or she expects that the other person will behave in a responsible manner and will not take advantage of a dependence upon him or her (Gefen et al. 2003). Trust is one of the major obstacles that allure the customers from using the internet banking or adopting the new technology. The criteria which may influence trust are: Data and transaction security, which focuses on privacy and confidentiality such as authentication of remote users using online transaction.
Threats can be made through either data transaction or network attack, or unauthorized access by mearns of fake or defective authentication. Focuses on authorization methods in accessing information, mechanisms such as password protection and data inscription. Hacker’s aactivity. Mass media roll that always highlights about the unsafe nature of internet. 3. 2. 3 culture (Hofstede,1980) The individual decisions on whether to adopt internet banking or new technology are depending on their perception.
This perception shaped by the culture of certain ethnic and it can be in many different ways. The cultural values of different ethnics affect the way they see things. Hofstede (1980) found that the differences in work related values can be explained by the national culture. Cultural dimension can be divided in five segments (Hofstede, 1980): a. Power distance b. Uncertainty avoidance . Individualism vs Collectivism d. Masculinity vs Femininity e. Time orientation Individual tend to adopt or accept new technology when they are influenced by the people that very closed with themselves.
The industry condition also is taking part in influencing the customer decision to adopt or accept new technology. 3. 3 Methodology Student sampling has become a tool in this research table 1, because sstudents are generally younger, more educated, and more open minded when dealing with World Wide Web. As a result, these samples tend to represent future adoption patterns in the population at large. Factor analysls was perTormea to assess tne va1101ty 0T tne construct ana multiple regressions were employed to analyze the data. Figure 1.
Research Model 3. 4 Result Of Research (Qualitative & Quantitative) The result of the Journal is that all trust, perceived ease of use and perceived usefulness have overwhelmingly positive effect on internet banking intentions for both ethnics. Thus, the banks need to enhance all its features such as bankings security to gain peoples’ trust and ease of use. In addition, the ssimilarity of the interface with automated teller machines (ATM) will ease the use of internet banking nd may allure customers to use internet banking exclusively.
Security enhancements need to put as number one priority for banks in order to ensure the confidence level of users using the internet banking systems. The result from standardized coefficient examination showed that Chinese have higher rate of intentions to use internet banking compare to Malays. Chinese are more pragmatic (Abdullah, 2001) meaning that they are more practical, calculative and less emotional in making choices. Malays are more culture-valued people whom value composed ualities such as sincerity, generosity, discretion and feeling of shame at collective level as well as individual level.