Electronic Transaction of Internet Banking and its Perception of Malaysian online Customers

This paper investigates the factors determining the Malaysian banking consumers’ perception on ebanking transactions. A research framework was developed to testify the statistical relationships among consumer perceptions on e-banking transaction. Factor analysis was performed to extract and decide on the number of factors underlying asset of measured variables of interest. Structural equation model (SEM) was tested to anticipate the effects of the explanatory variables. This study shows that only protected transaction, have significant impact on consumers’ perception about e-banking security, followed by service quality and regulatory frame work issues. This study offers an insight into ebanking in Malaysia, which has not previously been investigated and at the same time, statistical tests significance makes this study a potential cornerstone for future research.