Acceptance of Internet Banking Systems Among Young Users; the Effect of Technology Acceptance Model

The evolution in internet banking studies has point out the importance of fulfilling the needs of potential young internet banking users who significantly affect the level of internet banking acceptance. Young users consist of those between 15-25 years of age, and most of them are students in secondary schools and universities. Students in tertiary education are very important to internet banking providers because most of the future users of internet banking will come from this segment. As a result, understanding their behaviour towards internet banking systems is crucial. Therefore, the aim of this paper is to determine acceptance of information technology systems of internet banking among undergraduate students in Malaysia, who are regarded as potential young users in internet banking market. This research develops a technology acceptance model for internet banking system based on the modified version of Technology Acceptance Model (TAM) to examine the effects of Computer Self-Efficacy (CSE) and Perceived Usefulness (PU), Perceived Ease of use (PE) and Perceived Credibility (PC) of TAM on the Behavioural Intention (BI) to use the internet banking systems. PU and PE are the established dimensions of TAM and PC and CSE are the additional dimensions and construct which are to be included in the conceptual model. Data were obtained from 556 business and computer science and information system undergraduate students, who are pursuing their degrees in a Malaysia's public university. The result revealed that perceived usefulness (PU), perceived ease of use (PE) and perceived credibility (PC) of TAM affect respondents' behavioural intention (BI) to use the internet banking systems, suggesting that these dimensions are good determinants of potential young users' acceptance of internet banking system. PC was found to have stronger influence than PU and PE on BI. The findings unveiled that indirect relationships existed between CSE and BI through PU, PE and PC of TAM. The results of this study validated that the technology acceptance model proposed was well adopted in predicting individual acceptance of information technology systems, including internet banking system. This paper extends the understanding on how potential young users response to information technology systems from Malaysia's undergraduate students perspective.