Internet banking in malaysia

Introduction

The sole purpose of this chapter is mainly focuses on the prior studies that will help elucidate and understanding about the perception of online banking adoption. Several models have been developed to examine and understand the factors affecting the acceptance of computer technology in organizations. Therefore, this literature review starts with the preface and introduction of the models that were often being used to validate the acceptance of technology, there are the Theory of Reasoned Action (TRA), Theory of Planned Behavior (TPB) and Technology Acceptance Model (TAM). In addition, it includes on the review of the online banking in Malaysia and online banking in US. Besides that, in this literature review also pointed out some of the findings about the demographics profile and ICT profile between Malaysia and US. Furthermore, it also includes discussion about a few important determinants that the other researchers found in TAM model or others models.

The Definition of Online Banking

Online banking or Internet banking allows customers to perform their financial transactions on a safety or secure website operated by their retail or virtualbank, credit union or building society (Wikipedia, 2007). The internet banking involves consumers using the Internet to entrance their bank and account, to undertake banking transactions. At the fundamental level, Internet banking can mean the setting up of a Web page by a bank to provide information about its product and services. At an advance level, it involves provision of services such as accessing accounts, funds transfer, and buying financial products or services online (Sathye, 1999).

According Investorwords.com, the online banking can be defined as a system allowing individuals to perform banking activities at home through the internet. In other countries such as US, some online banks are traditional banks which also offer online banking, while others are online only and do not have a physical presence. Online banking through traditional banks allow customers to perform all routine transactions, such as account transfers, balance inquiries, bill payments, and stop-payment requests, and some even present online loan and credit card applications to their customer.

The customers' account information can be accessed anytime, day or night, and can be done from anywhere. Some of the banks update their information in real-time, while others do it daily or monthly in their website. Once information has been entered, it do not need to be re-entered for parallel subsequent checks, and future payments can be scheduled to occur automatically.

The Internet Banking in Malaysia

In Malaysia, the consolidation of the banking sector has been with the objective of strengthening the existing banks to enable them to face the rigid competition from foreign banks, which is expected with the impending deregulation of the sector. The government has expectant consolidation of banks at least since 1994. While some mergers did take place, the shock was not as desired and in July 1999; Bank Negara decreed that the local banks would be combined into various groups. The merging exercise resulted in cutting down the quantity of local banks to 10 banks. The objective of BNM was to make local banks stronger and more stable, with a hope that the industry will be more resilient.

Since Malaysia is one of the Muslim Countries in the globe, therefore, Malaysia has dual banking systems which are Conventional and Islamic banking system. There are two Islamic banks in Malaysia which are Bank Islam Malaysia and Bank Muamalat. Bank Islam Malaysia was established on 1 July 1983 and Bank Muamalat on 1 October 1999. Bank Muamalat being at an immaturity stage and has yet to get into the e-banking arena at that period. However, Bank Muamalat currently offering wide-range of E-banking included the online banking. On the other hand, Bank Islam Malaysia is also actively moving towards this digital divide, wherein Bank Islam offered its customers e-banking facilities from year 2001. This is seen as an effort to improve and widen its range of services and also to compete with other conventional banks.

Sarcastically, electronic revolution in Malaysian banking has started since 1970s (Pang, 1995). Nevertheless, the noticeable form of electronic innovation was also the measly introduction of Automated Teller Machine (ATM). Speedy innovation in the telecommunications and information technology has been the support in enabling banks offerings their services through PC banking. Hence, the competitiveness in the industry has resulted in Malaysian Government to makeup a legal framework for bank to provide Internet Banking services. The early decade of the 1990s saw the appearance of automated voice response (AVR) technology. The banks presented the telebanking facilities for financial services using the AVR technology. With further advancements in technology, banks were able to propose services through personal computers owned and operated by customers at their convenience, through the use of Intranet proprietary software. The users of these services are mainly corporate customers rather than the retail customers.

Five of these banks (Southern Bank, Hong Leong Bank, HSBC Bank, Multi-purpose Bank, PhileoAllied Bank and RHB Bank) are reported to have invested millions of Ringgit in Internet technology (ASBJ, 1998). The postponement in making this delivery channel appears to be due to the lack of sufficient legal framework and security concerns by the consumers. The customers' confidence in the system is another factor that will be of paramount importance in ensuring the success of e-banking (Sohail, & Balachandran, 2002).

The BNM decided to give the much-awaited endorsement for domestic banks to bind into the Cyber Wagon on 1st June 2000. Effectively from June, local banks were allowed to present full range of products and services over the Internet (BNM, 2000). The Malayan Banking Berhad (Maybank) became the first bank to offer online banking services, followed by Hong Leong Bank and the trend then followed by the others. In the interim, the locally incorporated foreign owned banks were only permissible to work Internet Banking after January 1st, 2002. At present, only bank licensed under the Banking and Financial Institution date, there are 13 commercial banks (Including Islamic bank) out of 25 banking institutions in Malaysia offering Internet banking services which is inclusive of 9 commercial local banks and 4 commercial foreign banks (shown in Table 1).

Table 1: Commercial Banks in Malaysia which are provided online banking

Commercial Local Banks

Affin Bank Berhad

Alliance Bank Malaysia Berhad

AmBank (M) Berhad

CIMB Bank Berhad

EON Bank Berhad

Hong Leong Bank Berhad

Malayan Banking Berhad

Public Bank Berhad

RHB Bank Berhad

Commercial Foreign Banks

Citibank Berhad

OCBC Bank (Malaysia) Berhad

Standard Chartered Bank Malaysia Berhad

United Overseas Bank (Malaysia) Bhd.

Sources: Bank Negara Malaysia website (www.bnm.gov.my).

Malaysia versus the US

Today, the US is in the position of developed nation league in the world. The first online banking in the world was introduced by the US Presidential Saving Bank in year 1995 which is located in the capital of US. Later, the idea was speedily snapped up by other banks like Wells Fargo, Chase Manhattan and Security First Network Bank in US. In the present day, quite a few banks in US operate exclusively via the Internet and have no physical entity at all. On the other hand, Malaysia currently is being in the developing nation league. Due to the liberalization of BNM, Malaysian witnessed the introduction of the first online banking in the year 2000 by Malayan Banking Berhad and internet banking is now a widespread service in this country today.

There is some demographical information about the two countries to shed light on the size of the potential customer group. The socio-economic indicators for Malaysia and Singapore are shown in Table 2. There are differences in terms of geographical area, population size and economic status. In term of geographical areas, the US is much larger than the size of Malaysia. The area surface of US is 9,632.0 (000s) sq.km and Malaysia only 329.7 (000s) sq.km. The population wise, it is almost eleven times that of Malaysia (see table 1). However, there are similarities between the two countries which is both are multi-racial, multi-religion society, with relatively high literacy rate in the range of 90% to 100%.

Since computers and mobile phones are the devices which are used the most to access the internet, it can be said that pre-requisites for using a online banking are the ownership of a computer (or at least access to one at work), a telephone line for dial up connection or access to broadband connection, or a mobile phone that has the ability to connect to the internet. The table 3 presented the ICT statistics of Malaysia and the US. The statistics may different between both countries because of their number of population.

Table 2: Demographics Profile of Malaysia and the US

Items

Malaysia

US

Total Population (2008)

26.99 millions

304.06 millions

Surface area (sq. km) (thousands) (2008)

329.7

9,632.0

Life Expectancy (2007)

74 years

78 years

GDP per capita (2007)

13,518

45,592

Adult Literacy rate (% aged 15 and above)

(1999-2007)

91.9

99.0

National Language

Malay

English1&2

Note: 1. English is the official language of at least 28 states—some sources give a higher figure, based on

differing definitions of "official". English and Hawaiian are both official languages in the state of

Hawaii.

2. English is the de facto language of American government and the sole language spoken at home

by 80% of Americans age five and older. Spanish is the second most commonly spoken language

Sources: 1. United Nation Development Program (Human Development Report 2009)

2. World Development Indicators Database (April 2009)

Table 3: ICT Statistics of Malaysia and the US

Items

Malaysia

(2008)

US

(2008)

Internet Users (000s)

16,902.6

230,630.0

Internet Subscribers (000s)

5,221.6

72,721.0

Total Broadband Subscribers (000s)

1,301.6

73,123.4

Main (fixed) Telephone Lines (000s)

4,292.0

154,654.8

Mobile Cellular Subscription (000s)

27,743.0

270,500.0

Sources: ITU World Telecommunication/ICT Indicators Database.

Theory of Reasoned Action model and Theory of Planned Behavior model

Due to the previous research, the TRA is the first model to certify the acceptance of technology which was proposed by Fishbein and Ajzen (1975). After that it's exist another model which is TAM by Davis, Bagozzi & Warshaw (1989). Finally, there was an extension of TRA to TPB which is proposed by Ajzen (1991). For Fishbein (1967) and Fishbein and Ajzen (1975), TRA is one of the most broadly studied the models of attitude and behavior. When practical to explain use or adoption behavior from the TRA, there was comprises four wide-ranging concepts which are behavioral attitude, subjective norm, intention to use and actual use (shown in Figure 1). The subjective norm inserted in the TRA is represents an important addition when compared to the TAM. With this subjective norm, the TRA takes version of the essentials of social influence that are found in community explanations of the exercise of the media (Shih & Fang, 2004).

The components of TRA are three wide-ranging constructs which are the behavioral intention (Bi), attitude (A), and subjective norm (Sn). TRA suggests that a person's attitude and subjective norm affecting behavioral intention which is (Bi = A + Sn). For the empirical case of Internet banking by (Shih & Fang, 2004), they stated that attitudinal belief refers to an individual's confidence that Internet banking represents speedier and more expedient transactions. This connection indicates how crucial it is for that individual to have high-speed and convenient banking transactions. The normative belief refers to an individual's perception of the use Internet banking by friends, colleagues and family members. This perception plays the main role in inducing the referent group's opinion (Shih & Fang, 2004).

There are two versions of the TPB which are the pure traditional TPB and decomposed TPB model in the previous research. The decomposed TPB is one of the models which the beliefs are dismantle into multidimensional constructs, are examined and compared to the TRA. The decomposed TPB model is bespoke from Taylor and Todd (1995), it is using such constructs as relative advantage, complexity, compatibility from the dispersion of innovation theory (Rogers, 1983) and perceived behavioral control (PBC).

The TPB (Ajzen, 1985, 1991; Mathieson, 1991) is an extension of the well-known TRA (Fishbein & Ajzen, 1975). In addition, both the TRA and the TPB affirm that behavior is an unswerving function of behavioral intention.

As similar to TRA, the TPB postulates that behavioral intention is a function of attitude and subjective norm (shown in Figure 2). According Ajzen (1991), Madden, Ellen and Ajzen (1992) and Sparks, Hedderly and Shepherd (1992) stated their studies have found a relationship between PBC and intention. The PBC is new and added to the TPB model to version for situations where individuals are short of complete control over their behavior (Ajzen, 1985, 1991; Ajzen & Madden, 1986). Perceived behavioral control refers to belief of the individual regarding control weighted by the perceived facility, that is, of the usefulness of the control factor in either inhibiting or facilitating the behavior. Therefore, control beliefs reflect the perceived difficulty (or effortlessness) with which the behavior may be effected (Ajzen, 1991).

Technology Acceptance Model

The information systems researchers are widely used TAM. The reason for its recognition is because of its parsimony and the wealth of empirical support for it (Agarwal & Prasad, 1999; Adam, Nelson & Todd, 1992). There are two basic elements in TAM which are perceived usefulness and perceived ease of use (shown in Figure 3). According to the Davis, Bagozzi & Warshaw (1989) defined perceived usefulness as the scope to which a person believes that using a technology would improve her/his job performance. On the other hand, perceived ease of use is the point to which using IT is free of attempt for the user. Perceived ease of use also refers to how understandable and explicable interaction with the system is; ease of receiving the system to do what is necessary, mental effort necessary to interact with the system and ease of use of the system (Ndubisi, Gupta & Massoud, 2003; Davis et al., 1989

In the step to millennium, Venkatesh and Davis (2000) extended the TAM model to TAM2 (shown in Figure 4) which it is included the explanation of perceived usefulness and usage intentions in terms of social influence and cognitive instrumental processes. The TAM2 was tested in both voluntary and mandatory settings in the prior research by Venkatesh and Davis. There are four acquaintance factors manipulate or influence the perceived usefulness are job relevance, output quality, result demonstrability, and perceived ease of use. Three social forces manipulate perceived usefulness are subjective norm, image, and voluntariness (Venkatesh & Davis, 2000).

In the previous studies, some of the researchers had verified the others factors that affecting the perceived usefulness and perceived ease of use. According Liao and Cheung (2002), they are presented an experimental estimation to foresee the marginal effects of the factors underlying perceived usefulness and willingness to use, and the substitutability between them. Furthermore, their data verified that there were some key quality attributes fundamental of perceived usefulness which is expectations of accuracy, security, network speed, user friendliness, user participation and convenience. On the other hand, Suh and Han (2002) conducted an exploration based on the TAM to examine customer acceptance of Internet banking. They projected a further aspect of belief which is trust to enhance understanding of that acceptance. Furthermore, they also claimed that the TAM as a suitable model for explaining acceptance in the outline of Internet banking.

Besides that, in the prior research found that computing experience is also a factor that affects the perception of users to adopt the technology. In addition, the theoretical and instinctive basis to believe that computing experience might have relationship with perceived usefulness, perceived ease of use and perceived credibility. For example, the previous study by Ndubisi and Jantan (2003) stated that there is pragmatic support in Malaysia to suggest that preceding general computing experience determines perceptions.

Although the TAM and TRA share many issues but they have some significant differences. According to Davis et al. (1989), the first difference is that according to TRA beliefs are be constraint to context and for this reason they cannot be generalized. Conversely, TAM states that Perceived usefulness and Perceived ease of use are issues that have an effect on reception of all information systems. Besides that, the other significant difference is that in the TAM both beliefs are seen as legible constructs but TRA all beliefs are summed together. In conclusion, TAM has been examined in many studies such as Davis et al., 1989; Mathieson, 1991; Adams et al., 1992; Davis, 1993; Taylor and Todd (1995). According Mathieson (1991) stated that TAM is better than TRA and TPB because TAM's capability to explain attitude toward an information system adoption.

TAM Beliefs - Perceived Usefulness

The TAM was established by Davis et al. (1989) to clarify acceptance of information technology for dissimilar tasks and it may be used to foresee online banking adoption (Pikkarainen, Pikkarainen, Karjaluoto & Pahnila, 2004; McKechnie, Winklhofer & Ennew, 2006; Wang, Wang, Lin & Tang, 2003). In addition, The TAM establishes that user adoption of a latest information system is determined by the user's intention to use the system, which is in turn determined by the user's beliefs about the system.

According Davis et al. (1989) pointed those two beliefs in TAM which are Perceived usefulness and Perceived ease of use. Thus, these two beliefs act as the basic determining factors in information system acceptance. As mentioned in the literature review earlier, the Perceived usefulness defined as “the level to which consumer believes that the use of a system will increase his or her performance” (Davis et al., 1989). Specifically, it refers to efficiency at work, time saving at production level, save cost and the relative importance of the system for the individual's work.

From the prior research, there were several studies extended the TAM model by focusing specifically on previous circumstances by perceived usefulness (Pavlou, 2003; Venkatesh & Davis, 2000), or added further components to the model (Al-Gahtani & King, 1999; Venkatesh & Morris, 2000) in order to explanation for the context-specific character of adoption studies. According Deng, Doll, Hendrickson, and Scazzero (2005) concluded that comparability across the studies was hard because of the diversity of applications studied and differences in the type of data gathered, the dependent variables utilized and the substance used to measure the key belief constructs.

The key linkages are particularly between these two key belief constructs (Perceived ease of use and Perceived usefulness) and users' attitudes, intentions and implementation behaviour.

On the other hand, Perceived usefulness has also previously been established to have a direct effect on internet banking usage (Eriksson et al., 2005; Pikkarainen et al., 2004). Basically, consumers' use the online banking services because they realize that using banking web sites can enhances the productivity of their banking activities and that they are functional and helpful for doing any financial transactions.

In conclusion, while the original model was specially developed to foresee user acceptance of technology in the workplace, it has been measured to be suitable as a theoretical basis for understanding the use, behaviour and acceptance of new internet-based technologies (Monsuwe, Dellarert & Ruyter, 2004; Gefen, Karahanna & Straub, 2003). In addition, Pavlou (2003) also saw its practical usefulness in understanding the key drivers for consumer acceptance of web-based transaction.

TAM Beliefs - Perceived Ease of Use

The Perceived ease of use refers to the degree to which a consumer believes that no effort will be required to use the system, with effort being understood to include both physical and mental effort, and how easy it is to learn to use the system (Davis et al., 1989). In addition, perceived ease of use influences perceived usefulness. From the prior research, there were several studies extended the TAM model by focusing specifically on previous circumstances of ease of use (Al-Gahtani & King, 1999; Venkatesh & Davis, 2000).

From the previous research on distance banking adoption reported proof of the important influence of perceived ease of use on actual usage (Eriksson, Kerem & Nilsson, 2005) or internet and mobile banking services usage purpose (Wang et al., 2003), either directly or indirectly from side to side its impact on perceived usefulness. Consequently, the website of internet banking require to be easy to learn and easy to use and it will be more likely to be accepted by users.

However, it is posited that approach towards using of a new information system is determined by users' perceptions of ease of use and usefulness of the system, and that approach towards using the system, in turn, is the key determinant of behavioural intention to use, which eventually determines actual system use (McKechnie et al., 2006).

According Ajzen (1991) stated that actual behaviour is the clear, obvious response in a given situation with respect to a given target. Besides that, the intention is a sign of a person's readiness to carry out the given behaviour (Ajzen, 1991). According O'Cass and Fenech (2003) stated that the TAM has been successfully applied in a range of marketing contexts to understand and give details about consumer information systems or technology adoption.

Perceived Computer Self-efficacy

Compeau and Higgins (1995) define Computer self-efficacy as the judgment of one's aptitude to use computer. The prior research have exposed that there is existed a positive relationship between experience with perceived outcome, computing technology and usage (Agarwal & Prasad, 1999). According Compeau and Higgins (1995) stated that the construct of Computer self-efficacy has been examined in the information systems journalism. However, the ongoing research work on computer self-efficacy could be observed in current information systems studies (Agarwal et al., 2000; Johnson & Marakas, 2000). In addition, these studies had confirmed the significant effect of computer self-efficacy in understanding individual responses to information technology. The future relationship between computer self-efficacy and perceptions is based on the theoretical argument of Davis et al. (1989) and Mathieson (1991). Furthermore, the experimental evidence on the effect of computer self-efficacy on perceived usefulness and ease of use has been recognized (e.g. Venkatesh & Davis, 1996; Venkatesh, 2000; Agarwal et al., 2000).

The previous general computing experience refers to users' preceding experience with using computers in general. The prior studies found that the attitudes founded on indirect experience worse than the direct experience. The direct experience can led to devise attitude object and predicted behaviour (Fazio, & Zanna, 1981). However, it has been argued that users' previous general computing experience with computers positively affects their perceptions of ease of use and usefulness of specific systems (Ndubisi et al., 2003). Thus, the previous general computing experience refers to the practical experience with systems that may or may not include training provided by experts. Venkatesh and Davis (1996) found that the system characteristics did not play an important role in the formation of early ease of use perceptions before a direct experience with systems. Moreover, the ease of use of two different systems did not be different significantly before direct experience, but the system characteristics became significant determinants of ease of use perceptions after direct experience. In addition, the theoretical and intuitive basis to believe that computing experience might have relationship with perceived usefulness, ease of use and credibility; there is an experiential support in Malaysia (Ndubisi & Jantan, 2003) to propose that previous general computing experience determines perceptions. The result of the prior research (Guriting & Ndubisi, 2006) shows that perceived usefulness and perceived ease of use are important determinants of online banking adoption intention. Furthermore, the bank customers fasten an online banking adoption intention to the beneficial outcomes and ease of use process of the system Computer self-efficacy is a vital determinant of perceived usefulness and ease of use. Conversely, there was no direct influence on perceived usefulness and ease of use by previous general computing experience.

Perceived Trustworthiness

Customers perceived doubts of revealing personal information to web sites might be misrepresented by others over the internet, especially for financial transactions (Sathye, 1999). Visibly, the customers have doubts about the trust ability of the e-bank's privacy policies (Gerrard & Cunningham, 2003). In addition, the trust has arresting influence on user's willingness to connect in online exchanges of money and personal sensitive information (Wang et al., 2003).

According Anderson and Narus (1990), the idea of trust has often been linked with the achievement of continuing and profitable relationships. Usually, it has been seen as being made up of two fundamental components which are cognitive and behavioural (Moorman, Deshpande & Zaltman (1993). Several researchers such as Mayer, Davis and Shoorman, (1995) have proposed that the cognitive components mirror the result of the evaluation that one party makes of the credibility and goodwill of the other party. However, the concept of trust has typically been analyzed from a cognitive viewpoint (Flavián & Guinalíu, 2006). At same time, Morgan and Hunt (1994) noted that the addition of the behavioural component may be redundant as it is an outcome of the cognitive component but it cannot be considered as a characteristic element of the concept of trust.

According Flavián and Guinalíu (2006), from a cognitive point of view, it has usually been recommended that in perceived high risk contexts in the internet, thus, trust may be defined by three types of beliefs which refer to the levels of competence, honesty and benevolence as perceived by the individual (Flavián & Guinalíu, 2006; Mayer et al., 1995). In sequence, honesty is the faith that the other person will keep their word, fulfill their promises and be sincere (Doney & Cannon, 1997). Alternatively, benevolence reflects the faith that one of the persons is concerned in the well-being of the other. Certainly, a benevolent attitude is expected to condition the behaviour of the other party in the event that unpredicted situation occur (Ganesan, 1994). Taking into report the earlier considerations, the author (Casaló, Flavián & Guinalíu, 2007) had suggest that the concept of trust positioned in a financial services web site may be considered a construct formed by three different scopes which are honesty, benevolence and competence.

The trust is a crucial construct catalyst in numerous transactional relationships. For example, in the commitment-trust relationship marketing journalism, trust has been conceptualized as existing when one party has self-assurance in a partner's reliability and integrity (Ranaweera & Phrabu, 2003). Without a doubt, trust could exist at the human being level or at the firm level (Moorman et al., 1993). Additionally, trust when conceptualized as a measurement of technology acceptance model (TAM), could also has been thought of having a outstanding influence on user willingness to engage in online exchanges of money and private sensitive information (e.g. Friedman, Kahn & Howe 2000; Wang et al., 2003).

According Kassim and Abdulla (2006) stated that the degree to which a customer trusts the internet banking will be negatively influenced by the faith that he/she is operating in a high level of risk even though the risk level may be essentially low (perceived risk). In addition, the existence of trust in a relationship is a type of insurance against risks and unforeseen behaviour. Trust partially depends on experience from interacting with another party. For example, a customer who has been doing business with a service provider for some time and is satisfied with the results is inclined to trust that service provider.

Moreover, Mukherjee and Nath (2003) stated that the customers' technology course towards the electronic communication and the internet is regularly a proxy for their trust in internet banking because it provides a mean for information processing behaviour and perceived trust. Finally, Mukherjee and Nath (2003) found that the reputation as an incredibly crucial factor of trustworthiness. For example, when customers process information and transaction of an online banking, they would think the bank's reputation. Thus, reputation is on the whole quality or character as seen or judged by human in general (Mukherjee & Nath, 2003).

In contrast, the marketing area has analyzed in depth the characteristics of the trust concept and its occurrence on commercial relationships. Furthermore, most of the research developed from the marketing viewpoint is associated with inter-organizational relationships “Industrial Marketing” and Relationship Marketing theories (e.g. Morgan & Hunt, 1994). According Morgan and Hunt (1991) stated that trust plays a decisive position in the continuity and development of the relationships between a company and the different agents, which comprise its environment.

Perceived Speed

Basically, internet banking users are disgruntled with the low speed of Internet banking response, which results from deficiencies in infrastructure for the communication network. Regularly slow response time after the transaction leads to a holdup of service delivery and cause customers to be guarantee that the transaction was completed (Jun & Cai, 2001). Thus, customer perception of convenience seems to move once they are experienced on the internet and they view slow web sites as inconvenient.

Besides that, website download speed is another issue that influencing online banking adoption (Jayawardhena & Foley, 2000). Furthermore, the speed of download depends on the nature of the site downloaded content, the computing hardware and way of connection used to download information (Jayawardhena & Foley, 2000). Therefore, the speed is also dependent on the user's computing hardware and way of connection. Efficiency in internet banking mostly involves download speed, which in turn involves users in completing a transaction speedily.

In fact, findings of the present study support the results of research by Hoffman and Novak (1996), which a important correlation between web site download speed and perception of better service quality. According to Sohail and Shaikh (2008), while speed is of concern to users, other vital factors are the ease of acquiring desirable information and the organization of the information on the site itself. Therefore, banks should hit equilibrium between attractiveness and speed, ensuring that there is no usage of wide high-resolution graphics. The function of host server is also important as this considerably affects efficiency. In addition, technological developments in recent times have very much assisted banks, as the speed of downloading has increased in certain countries such as Saudi Arabia (Sohail & Shaikh, 2008).

The effect of using frames as a navigational instrument was considered by Van Schaik and Ling (2001), who found that insertion the navigation frame at the top or the left hand side of the page, was equated with enhanced user performance in terms of speed and accuracy. Besides that, the transaction linked features include the clarity of commands on the site, interactivity, speed of upload and download (Ndubisi, Gupta & Ndubisi, 2005), has documented the significance of clear and understandable procedural information to technology usage. Other scholars such as Tan and Teo (2000) have furnished evidences for the outstanding roles of interactivity, efficiency and speed of the internet site to usage.

In another study in Singapore, Liao and Cheung (2002) found that individual prospect regarding accuracy, security, transaction speed, user-friendliness, user involvement, and convenience were the most crucial quality attributes in the perceived usefulness of Internet-based e-retail banking. The selection criteria, such as security, transaction speed, user-friendliness, and convenience were regarded as the most significant factors in the perceived usefulness of Internet-based e-banking (Liao & Cheung, 2002). Consequences, most people perceive downloading may import unwanted viruses, and consume hard disk space.

Perceived Cost

As affecting consumers to the online channel has a clear cost savings goal, following in this objective becomes very crucial for bank services providers, as meaningful savings are only possible with an important migration of consumers to online banking (Aldás-Manzano, Lassala-Navarré, Ruiz-Mafé & Sanz-Blas, 2008). In spite of the fact that the internet lowers the costs of acquiring information, consumers also acquire time costs from using online banking such as the time of learning how to purchase on a certain banking website, the time to wait for it to respond and the added cognitive effort expended in this expanded search process (Littler & Melanthiou, 2006).

The context of internet banking, the types of costs involved are the costs associated with the internet activities and other bank costs and charges (see Sathye, 1999). The banks may consider offering a low-cost service by passing on some of their gain from reduced operating cost to customers. This may lead to better customer loyalty towards the service. Of course, the more widespread the access computers/internet, the greater is the possibility of use of internet banking by customers. Developing the brand and the bank's reputation will also act as an assurance to the customers (Kassim & Abdulla, 2006).

However, with the increase in the internet banking adoption, the attractiveness of the banking sector to a range of potential new entrants has also increased greatly. Primarily, this is due to factors such as the fee of entry being low, profits that are very promising and a risk that appears manageable (Jayawardhena & Foley, 2000). In addition, with more banks offer services online, the competition is increasing; banks are enlarging their customer base, potentially cutting transaction costs and as a result boosting efficiency (Sohail & Shaikh, 2008).

The prior studies have observed banks moving to an online approach for a number of reasons. The two main reasons, according to Pikkarainen et al. (2004) stated that the cost savings flowing to banks that offer online rather than physical services. Secondly, the move to a more self-service approach is because branch banking took too much time and effort. However, these causes can be magnified in particular countries; for example, in Thailand the entry of foreign banks has resulted in a decrease in bank branches in order to turn into more cost effective (Jaruwachirathanakul, & Fink, 2005).

In the online banking service allows users to control their accounts from anywhere at their own convenient time at lower cost, it provides many advantages to the user in terms of price and convenience (Polatoglu & Ekin, 2001). Nath, Schrick, & Parzinger (2001) underlined that the average transaction cost at a full-service bank was reduced if done the transaction at an ATM, and fell to about a penny if the transaction was made on the Web. They also added that cost savings, access to additional services, and convenience were among the main benefits of the online banking. As an effect, the greater the perceived usefulness of using online banking services, the more possible that online banking will be adopted. In the previous study (Suganthi, Balachandher, & Balachandran, 2001) showed that Internet accessibility, awareness, attitude towards change, computer and Internet access costs, trust in one's bank, security concerns, ease of use and convenience are the major factors affecting the adoption of Internet bank services in Malaysia.

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