The effect of trust on perceived usefulness within the Malaysian online banking environment

• Main Authors: Abdullah, Shahmir Sivaraj, Abdullah, Haim Hilman
• Format: Article
• Language: English
• Published: 2016
• Subjects: HG Finance; T Technology (General)
• Online Access: http://repo.uum.edu.my/21362/1/GBSE%202%201%20%202016%20130-140.pdf; http://repo.uum.edu.my/21362/; http://gbse.com.my/#portfolio

Trust is often studied as a variable that contributes towards the adoption and subsequent use of online banking (OB).This study however studied the influence that trust (TRT) exerts on perceived usefulness (PU) when intending to adopt online banking.A systematic random sampling of residents in and around various cities in Malaysia was used as the studies sample.A Pearson correlation followed by a multiple regression, and later a bootstrap of the regression output was used to test the hypotheses generated.The dimensions of trust (security, privacy, reliability) were studied first before the trust variable was tested.The regression analysis indicated a significantly positive relationship between the individual dimensions of trust and further to this the trust variable itself with PU in the context of consumer online banking adoption. The study provided a useful insight on the dimensional attributes of trust that impacts PU.The study also implied that trust has a strong impact on PU and as such positively influences the intention to adopt online banking in Malaysia. Recommendations for future research are suggested at the end of the article.