Mobile Banking Adoption Among Malaysian

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The International Islamic Economic System Conference – The 9^th I-iECONS 2021

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INTERNATIONAL ISLAMIC ECONOMIC SYSTEM CONFERENCE (I-iECONS 2021)

Mobile Banking Adoption Among Malaysian: A Study of Maybank Customers

Muhamad Azrin Nazri

Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), e-mail: [email protected]

Azreen Jihan Che Mohd Hashim

Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM) e-mail: [email protected]

Nor Asiah Omar

Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM) e-mail: [email protected]

Abstract

The recent innovation like mobile banking helps customers to do various banking transactions via tablets and smartphones. Based on the limited empirical study on intention to use the mobile banking among Malaysian, this research applied modified TAM Model to examine factors affecting the mobile banking adoption among Maybank’s customers as Maybank is among the top banks in the country. A total of 155 respondents answered the questionnaires. The data had normal distribution with Cronbach alpha value fulfilled the minimum of 0.7. Multiple regression was applied to examine the hypothesis. The hypothesis of perceived usefulness, trust, credibility, and compatibility with lifestyles influence intention to use mobile banking were accepted.

However, the hypothesis of perceived ease of use was rejected. The research findings were discussed, and future study was proposed.

Keyword: Perceived ease of use, Perceived usefulness, Trust, Credibility, Compatibility with lifestyles and needs, Intention to use mobile banking.

1. Introduction

Banking is an industry that handles and manages cash, credit, and other financial transactions as well as becomes a safe place to store extra cash and credit (Amadeo, 2021). Generally, a bank offers various banking services including saving account, mortgages, insurance, and investment. With the existence of internet nowadays, banking institution offers alternative channel in providing banking services and products to customers. Today, the internet is becoming a strategic competitive weapon for banks where the financial institutions will revolutionize the ways they operate and deliver the services especially when competitive advantages of traditional branch networks are eroding.

The advancement of technology and internet has contributed towards the emergence of mobile services in many industries. Several scholars believe that many impactful and important advancements of technology are in the context of mobile banking (Hassan and Wood, 2020).

Mobile banking refers to an electronic banking innovation. It uses mobile network and mobile communication technology to connect the mobile phones and other mobile devices banking system as well as getting a variety of financial services via the mobile interface or SMS. This allows the user to access to financial services at anytime and anywhere. Even though mobile banking is quite common among people, but some studies found that the usage of the mobile banking services is still low and has not achieved the industrial expectations (Laukanen, 2008; Kleijnen,

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2007). In Malaysia, Maybank was among first financial institution to offer mobile banking services for example via SMS mobile banking.

This study has examined the factors; perceived usefulness, perceived ease of use, trust, credibility as well as compatibility with lifestyle and belief in influencing Maybank customers to adopt mobile banking. Perceived usefulness is one of the fundamental antecedent factors of technology usage and adoption. Perceived ease of use is defined as the level of a person believes that using a mobile banking system would be free effort. Technology trust relates to an individual’s willingness to be vulnerable to an information technology based on expectations of technology predictability, reliability, and utility. Whereas the credibility is the extent to which a person believes that the use of mobile banking will have no security or privacy threats and the perceived credibility significantly affects intention of usage. Perceived compatibility is defined as the degree to which the internet technology is regarded as being consistent with the existing values, belief, lifestyle and needs.

2. Methodology

A population of a study refers to the total number of people in the form of a throughout headcount of all elements the findings of the study seek to represent (Sekaran, 2003). The population of interest for the study comprised of Maybank customers in Malaysia who have patronized the mobile banking service. The measurement items in the study were adopted and adapted from previous research. The questionnaires were distributed to more than 200 respondents and 155 of the submitted questionnaires were completed and valid with an overall response rate of around 70 percent.

3. Result and Discussion

No missing and extreme value found in the study. The skewness value and kurtosis of the data is close to zero which indicates data normality of distribution (Tabachnik and Fidell, 2001). All items in the study exceeded the 0.7 of Cronbach alpha indicating its item reliability (Nunnally, 1978). The findings based on multiple regression analysis in Table 3.1 show that all hypotheses were accepted (highlighted in yellow) except perceived ease of use (EaseOUse).

Table 3.1 All hypotheses result

Model Unstandardized Coefficients Standardized Coefficients t Sig.

B Std. Error Beta

1

(Constant) -.013 .250 -.053 .957

PUsefulness .221 .073 .205 3.047 .003

EaseOUse -.027 .069 -.028 -.394 .694

Trust .162 .064 .162 2.517 .013

Credibility .187 .069 .186 2.718 .007

CompLstyle .454 .073 .448 6.188 .000

Dependent Variable: IU 4. Conclusion

Generally, the research offers the empirical findings where perceived usefulness, trust, credibility as well as compatibility with lifestyle and belief influence Maybank customers to adopt mobile banking. However, perceived ease of use does not influence Maybank customers to adopt mobile banking. Managerially, the findings contribute towards mobile banking service management in the context of Maybank and the industry.

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324 References

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