Title: Customer switching resistance towards internet banking in Malaysia

Authors: Lee Hoi Yen; C.A. Malarvizhi; Abdullah Al Mamun

Addresses: Faculty of Management, Multimedia University, Cyberjaya, Selangor, Malaysia ' Faculty of Management, Multimedia University, Cyberjaya, Selangor, Malaysia ' Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia

Abstract: Internet banking, although proven to be a successful innovation, has still not been adopted by the laggards, and hence, has not met all the expectations of banks. This study, therefore, is aimed at investigating the effects of e-system quality (ease of use, responsiveness, and web content) and e-trust (privacy, perceived risk, reputation, and security) on customer switching resistance (SR) towards internet banking in Malaysia. There are many reasons why customers do not use internet banking in Malaysia. This study employed a cross sectional design and data was collected from 158 respondents from Cyberjaya, Malaysia. The findings indicate that perceived ease of use of current service provider, privacy policies, perceived risk, and security services are the key determinants of customer's reluctance to switch to the current internet banking services. These findings provide a more profound understanding of consumer resistance to internet banking, in addition to offering guidance to service providers.

Keywords: internet banking; system quality; trust; switching resistance; Malaysia; electronic banking; online banking; e-banking; customer switching; ease of use; responsiveness; web content; privacy policies; perceived risk; reputation; security; banking industry.

DOI: 10.1504/IJBIS.2016.074256

International Journal of Business Information Systems, 2016 Vol.21 No.2, pp.162 - 177

Received: 22 Aug 2014
Accepted: 16 Sep 2014

Published online: 20 Jan 2016 *

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