Factors affecting online banking adoption based on unified theory of acceptance and use of technology (UTAUT)

Internet revolutions have brought a huge impact on banking industry. It had also created a novel way for handling banking transactions via online banking channel. There was approximately 23.6% increase in online banking subscribers in Malaysia since 2005 to 2010. However, past literature reviews claimed that online banking was not favorable in Malaysia. Hence, this study attempts to examine the factors that affecting the intention to adopt online banking based on unified theory of acceptance and use of technology (UTAUT). Other than the four constructs from UTAUT, one additional construct has been added into this model for the purpose of this study. The five determinants were performance expectancy, efforts expectance, facilitating conditions, social influence and personal innovativeness in IT were examined in this study. A total of 400 questionnaires were distributed among UTM students, where respondents were randomly selected. Principle component analysis and Cronbach’s alpha were used to test the validity and reliability of the measurement scale. Pearson correlation was employed to examine the relationships between variables, and multiple regressions were used to test the hypothesis of this study. Regression model in this study found that 48.5% of the variance had been significantly explained by the predictors. As a conclusion, the findings of this study revealed that all the factors except facilitating conditions are significantly affecting the intention to adopt online bankin