THE LIMITATIONS OF

INTERNET BANKING

BY:
VILLASINI A/P MUTHU KRISHNAN
GM04938
INTRODUCTION

Internet banking is defined as the delivery

of banking services to customers through
the internet (Chi et al., 2007).
Internet banking provides flexibility in
performing financial transactions fast and
easy.
However, Malaysians are still reluctant in
adopting the system due to several
limitations.
PROBLEM STATEMENT
While Internet banking has grown rapidly, there is no
enough evidence of its acceptance amongst
consumers. Robinson (2000) reported that half of the
people that have tried online banking services will not
become active users.
Weeldreyer (2002) claims that Internet banking is not
living up to the hype.
Security and privacy (Tan and Teo, 2000), task
familiarity and accessibility (Chau and Lai, 2003), have
been identified as a limitation towards Internet banking.
Thus, this present study aims at examining the above
mentioned factors that limits the usage of Internet
banking.
THE OBJECTIVES OF THIS
STUDY

To have an understanding on the limitation

of security and privacy towards Internet
banking.
To have an understanding on the limitation
of task familiarity towards Internet banking.
To have an understanding on the limitation
of accessibility towards Internet banking.
RESEARCH QUESTIONS

What is the impact of security and privacy

towards Internet banking?
What is the impact of task familiarity
towards Internet banking?
What is the impact of accessibility towards
Internet banking?
SIGNIFICANCE OF THE STUDY

To know what are the factors that limits the

usage of Internet banking in Malaysia.
To come up with solutions for the
limitations to be applicable to all the
Internet banking service providers.
CONCEPTUAL FRAMEWORK

Security and
H
privacy 1

H Limitations of
Task 2
familiarity Internet
banking
H
Accessibility 3
HYPOTHESIS (1)
Security has been recognized as one of the main
obstacles to the adoption of electronic banking
(Aladwani, 2001).
While privacy issue have proven important
barriers to the use of online services (Westin,
1998).
Goodwin (2001) reported that security and
privacy concerns were found to be a major barrier
to Internet shopping.
Therefore, the following hypothesis is tested:

H1: Security and privacy is positively related to the

limitation of Internet banking.
HYPOTHESIS (2)
Task familiarity represents the degree of
nonvariability and certainty of activities that a
user needs to resolve when using the technology.
Kim and Umanath (1993) mentioned that; when
nonvariability and certainty in the task domain are
high, work performed tends to be more structured
and predictable and the information processing
requirement tend to be minimal. In contrast, as
the task variability and uncertainty increases, the
problem becomes more unstructured and the
procedure becomes difficult.
Therefore, some users might still be frustrated by
the unfamiliarity of performing the task in the new
Internet environment. Hence, it is postulated that:
HYPOTHESIS (3)
Karahanna and Straub (1999) mentioned that
accessibility is a multidimensional construct
encompassing both physical terminal access and
system usage ability.
The more accessible an information is, less effort
is needed to use it.
Goh (1995) argued that if the supporting
technological infrastructures are easily and readily
available, Internet commerce applications such as
Internet banking will become more feasible.
Based on the foregoing, the following hypothesis
is proposed:

H3: Accessibility is positively related to the

DATA COLLECTION

Data will be collected among the MBA

students of University Putra Malaysia
(UPM) and also from the academic and
non-academic staffs of University Putra
Malaysia (UPM) .
MEASURES

Questionnaires were developed to be the

instrument for data collection.
Question items used were adapted from
prior literature using a 7 point Likert scale
with anchors ranging from strongly agree
to strongly disagree.
DATA ANALYSIS

H1: Pearson Correlation Analysis

H2: Pearson Correlation Analysis
H3: Pearson Correlation Analysis
THANK YOU