International Academic Journal of Social Sciences

  • ISSN 2454-3918

Effect of Perceived Security and Perceived Privacy towards Trust and the Influence on Internet Banking Usage among Malaysians

Normalini Md Kassim

Abstract: Internet banking security is a critical issue over the world. But the traditional protection mechnisms are not sufficient to secure the online banking systems that hold information about clients, and banks. The objective of the present study was to identify the impact of perceived security and privacy factors on customer trust and its influence on intention to continue using Internet banking in Malaysia. The participants for this study were individual Internet banking users in Peninsular Malaysia. Data was collected through self-administered questionnaires distributed using the drop-off and pick-up (DOPU) technique to bank branch managers who then passed the questionnaires to their customers. A total of 413 respondents completed the questionnaires. The SPSS statistical analysis software package and Partial Least Squares statistical method were used for data analysis and hypothesis testing. The results show that perceived security significantly influences customer trust and consequently intention to continue using Internet banking. Moreover, trust plays a critical role in influencing intention to continue using Internet banking in Malaysia while perceived privacy does not. An understanding of the factors identified in this study will enable Internet banking providers to effectively and efficiently enhance the security of services and thereby promote continued usage of Internet banking among customers. The findings of this study are thus expected to be of great use to Internet banking providers as improvements in Internet banking security will increase business in the long run

Keywords: Internet, Banking, Security, Privacy, Trust

Page: 120-130

Volume 4, Issue 1, 2017