Research Methodology

Abstract

This research is a study on factors that influencing the adoption and practices of E-banking among people in Kota Damansara, Malaysia. The purpose of this study is to make clear how E-banking changes people who are using it and also how people practices E-banking to improve their daily task in Malaysia. Theoretical framework used in this study has four independent variables, which are convenience, security, perceived usefulness and prior internet knowledge. All these data is collected by questionnaires from people in Kota Damansara, Malaysia. The finding of this research will be useful for banks, customers and researchers in this area as well.

CHAPTER ONE

INTRODUCTION

1.1 Research Background

Nowadays, banking business has experienced speedy technological revolution and expansion. E-banking, which changes the way banking customers conduct their banking transactions was defined as the interactive and electronic communication channels which can directly deliver both traditional and new banking products and services to customers via the automated way. Currently, customers demand more services from bank industry. They hope that new stages of flexibility and convenience (Holm, 2014)could help in their practices of products, services and financial management tools that cannot satisfied from those traditional banks. Therefore, banks have implemented numerous access methods to provide services through some innovative delivery channels to help them to complete their daily task easily, such as ATM.

According to Allen et al (2001), the evolution of the E-banking industry can be traced early 1970s, subsequently increasingly becomes more and more significant. Compatible with the revolutionary components of the electronic marketplace, evolution in telecommunication and information technology have brought banking industry a revolution in Malaysia. The introduction of Automated Teller Machines (ATM) became one of the most vital changes that occurred in Malaysia, in 1981. Afterward ATM came into service; PC- banking and Tele-banking were introduced in 1990s. Based on (Alain Cohn, 2014)a more advanced service is the one which can offers their customers the chance to gain access to the financial accounts, conduct transactions or purchase products and services online through the internet. On June 1st, 2000, Malaysian Central bank or Bank Negara Malaysia (BNM) permitted the whole native banks to provide their customers various products and services via the internet. Lastly, on June 15, 2000, the largest local bank- Malayan Banking Berhad (Maybank) became the first one that offer its customers service online in Malaysia over its own portal, www.maybank2u.com, which offers customers diverse financial services through an intelligent electronic device, such as automated teller machine (ATM), a personal digital assistant (PDA), personal computer (PC), or Touch Tone telephone.