BANKING CHANNELS ADOPTION IN MALAYSIA: AN ANALYSIS

Abstract

The purpose of this paper is to examine the factors that affecting Malaysian bank customers acceptance of banking channels namely branch banking, ATM banking, telephone banking and Internet banking. Considering this objective in mind, the current study tends to develop a model, a theoretical framework that explains the factors affecting banking channels adoption from a Malaysian point of view. The model was tested with a survey sample (n = 241). Results suggest that convenience factors are the most influential
drivers in branch channel adoption, assurance factors are the most influential drivers in ATM adoption, informativeness factors are the most influential drivers in telephone banking adoption while assurance factors are the essential factors in impacting Internet banking adoption. This study indeed suffers from two main limitations that lead for a potential future research in this field of knowledge. Worth to mention, the first limitation
is on its limited number of measures applied in this study. The second limitation is based on the fact that it ignored mobile banking as a banking channel. Nevertheless, this study adds the very limited study available in this topic in Malaysia. On the other hand, it provides benefits to bank managers since this study offers an insight on the factors affecting Malaysia bank customers to utilize of different types of banking channels.