S. Arunkumar


The development of online banking technology revolution in recent years, and speed of this development is extremely rapid. Online banking technology also spreads widely and influences deeply not only economic activities of business, households and governments but also various areas of people’s daily life. With the liberalization and internalization of financial markets, in terms of the entrance of the World Trade Organization, banks in Malaysia face pressures in service quality and administrative efficiency. Predicting customers' intention towards Internet banking is an important issue. Internet banking is a new type of information system that uses the innovative resources of the Internet to enable customers to effect financial activities in virtual space. The adoption rate of Internet Banking was estimated by analogy to adoption pattern. This study explores the factors contributing to the adoption of Internet banking in Malaysia. The technology acceptance model was used to study attitude and intention towards Internet banking. Perceived easy of use, Perceived usefulness and perceived enjoyment are the three factors which influence the attitude and intention towards using Internet banking. The model we developed proposed that online banking acceptance can be modeled with the variables derived from the TAM (PU and PEOU) and perceived enjoyment (PE). Perceived enjoyment is considered as the major factor for attitude and intention. Implications for banking practitioners as well as directions for future research are discussed.