Factors Affecting Malaysian Mobile Banking Adoption: An Empirical Analysis

This empirical study aims to investigate the factors that influence Malaysians’ intention to adopt mobile banking by extending the renowned framework of Technology Acceptance Model (TAM). A self-administrated questionnaire had been developed and distributed in Malaysia. Out of the 400 questionnaires, only 175 usable questionnaires were returned, yielding a response rate of 43.75 percent. Results were subsequently analyzed by using multiple regression and factor analysis. Factors such as perceived usefulness (PU), perceived ease of use (PEOU), relative advantages (RA) and personal innovativeness (PI) were found positively related with theintention to adopt mobile banking services. However, social norms (SN) were the only factor found insignificant. As expected, perceived risks (PR) was negatively associated with the mobile banking adoption. The research findings provide several important implications for banks, service developers, and software engineer with better strategic insights to design and implement mobile banking services to yield higher consumer acceptance towards mobile banking in Malaysia.