Academia.eduAcademia.edu
European Journal of Social Sciences Studies ISSN: 2501-8590 ISSN-L: 2501-8590 Available on-line at: www.oapub.org/soc Volume 2 │ Issue 7 │ 2017 doi: 10.5281/zenodo.898999 INTERNET AND DATA SECURITY – UNDERSTANDING CUSTOMER PERCEPTION ON TRUSTING VIRTUAL BANKING SECURITY IN MALAYSIA Jacquline Thami, Mohd Shukri Ab Yazid, Abdol Ali Khatibi, S. M. Ferdous Azam Faculty of Business Management and Professional Studies, Management and Science University (MSU), Section 13, 40100 Shah Alam, Selangor, Malaysia Abstract: Trust, security, and privacy have been factors in many studies, were tested, and do significantly affect the adoption of virtual banking. However, studies with regards to customer perceive trust in relation to virtual banking adoption in Malaysia is limited. Due to low customers' adoption of the internet and mobile banking in Malaysia, this study was conducted to evaluate customers' perception of trusting internet and data security in adopting virtual banking. In this study, 402 samples were collected from local and foreign bank customers and were analyzed using SPSS and AMOS. Sample selection was based on convenience sampling technique, and quantitative method has been applied to evaluate the study objectives. Through the descriptive analysis and research findings, it has been evaluated that that customer perception on Privacy (Pr) does not significantly and positively influence virtual banking adoption in Malaysia. And, the analysis in this study has also proven the hypothesis on Privacy (Pr) to be not valid. However, Privacy (Pr) is found significantly important in many studies. Further analysis showed weak agreement on customers perception with regards to their privacy protection in its' virtual banking platform. However, various study previous conducted have proven Privacy (Pr) to be significant in influencing adoption of virtual banking services. Therefore, perhaps Malaysian local banks should also focus on improving its' virtual banking strategy with regards to Privacy (Pr). The results obtained in this study are limited to questionnaires distributed within the Klang Valley. Future researchers Copyright © The Author(s). All Rights Reserved. © 2015 – 2017 Open Access Publishing Group 186 Jacquline Tham, Mohd Shukri Ab Yazid, Abdol Ali Khatibi, S. M. Ferdous Azam INTERNET AND DATA SECURITY – UNDERSTANDING CUSTOMER PERCEPTION ON TRUSTING VIRTUAL BANKING SECURITY IN MALAYSIA may expand its boundary by taking a diverse sample and including qualitative approach. Keywords: the Internet and data security; customer perception; trusting virtual banking security 1. Introduction The wave of innovation and revolution in open-architecture designs, widening use of cloud based solution and falling prices of computer technologies, are giving ways to market participants the ability to control the whole market space, and have immensely changed the ways businesses meet customers need, which is now speed oriented. These innovation has fundamentally transforming banks not only meeting customers needs but have also compel banks to invest enormous sum in meeting international regulations. The importance of security in virtual banking has been the attention to many studies (Islam, 2014; Daud et al., 2011; Shanmugam and Savarimuthu, 2014; Marsek, Uril & Kahirudin, 2012; Markal, 2015) due to the rising of technology issues. The theoretical reviews of this study will look into several theories which have been previously addressed by researchers in the area of virtual banking study. A number of studies have focused on the adoption factors of virtual banking. These studies have been based primarily on the Technology Acceptance Model (TAM), a well-recognized model used to explain information system adoption behaviour. According to TAM, adoption behaviour is determined by the intention to utilize a particular system, which is, in turn, determined by the perceived usefulness and the perceived ease of use of the system (Chuttur, 2009, Ma & Liu, 2004; Hussain, 2013; Tan & Lau (2016), Jefferis, Chigumira & Chipumho, 2013; Sujeet et.al., 2017;Bijith et. al, 2017) One major benefit of using the Technology Acceptance Model (TAM) is that it provides a framework by which the effect of external variables on system usage can be assessed (Yan & Yang, 2015; Ilham et. al., 2016; Sharma, Govindaluri & Al-Balushi, 2015). Theory of planned behaviour is a theory that links beliefs and behaviour. The concept was proposed by Ajzen (1980) to improve the predictive power of the Theory of Reasoned Action by including perceived behavioural control. It is one of the most predictive persuasion theory. The Theory of Planned Behaviour (TPB) of Icek Ajzen helps to understand how we can change the behaviour of people. The Theory of Planned Behaviour (TPB) is a theory which predicts deliberate behaviour because behaviour can be deliberative and planned. It has been applied to studies of the European Journal of Social Sciences Studies - Volume 2 │ Issue 7 │ 2017 187 Jacquline Tham, Mohd Shukri Ab Yazid, Abdol Ali Khatibi, S. M. Ferdous Azam INTERNET AND DATA SECURITY – UNDERSTANDING CUSTOMER PERCEPTION ON TRUSTING VIRTUAL BANKING SECURITY IN MALAYSIA relations among beliefs, attitudes, behavioural intentions and behaviours in various fields such as advertising, public relations, advertising campaigns, and healthcare. Theory of planned behaviour (TPB) and TAM, were among models been used in many studies to assess the intention to use new technology and systems (Abloelmaged & Gebba, 2013; Armitage & Conner, 2001; Venkatesh & Davis, 2000; lSoufi & Ali, 2014). TRA is conceived as a general structure designed to explain almost all human behaviour and is based on the importance of an individual’s beliefs for the prediction of his or her behaviour (Ajzen & Fishbein, 1980). However, according to TRA, behavioural intention to exhibit a particular behaviour is formed based on the individual's attitude toward the behaviour and on the perceived subjective norm. The first determinant, attitude toward the behaviour, reflects a person's beliefs that the behaviour leads to certain outcomes and the person's evaluation of those outcomes, favourable or unfavourable. Fishbein and Ajzen's Theory of Reason Action was developed to predict behaviours and attitude. This theory looks at behavioural intentions rather than attitude as the main predictor of behaviours with the purpose to predict and understand motivational influences on behaviour, which is not under the individual's volitional control. The purpose of this theory is to identify how and where to target strategies for changing behaviour and to explain virtually any human behaviour such as why a person engages a certain behaviour (Alavi, 2015). Theory of Reasoned Actions provides a framework to study attitudes toward behaviours. According to this theory, the most important determinant of a person's behaviour is behaviour intent whereby the individual's attitude toward the behaviour includes, behavioural belief, evaluations of the behavioural outcome, subjective norm, normative beliefs and the motivation to comply (Alavi, 2015). The assumptions of this theory include; human beings are rational and make systematic use of information available to them and people consider the implications of their actions before they decide to engage or not to engage in certain behaviour. Hamza et al. (2011) and Nyeko (2014) agreed that the considerable amount of research on mobile financial services has emerged with the overall majority of studies derived from this theory, applying research models and frameworks traditionally used within the literature such as the Technology Acceptance Model together with Theory of Reasoned Action. Yan and Yang (2015) stated that Theory of Reasoned Action is very general in nature and attempts to explain almost any human behaviour. According to Theory of Reasoned Action, a person’s performance of a specified behaviour is determined by his or her behavioural intention to perform the behaviour, and European Journal of Social Sciences Studies - Volume 2 │ Issue 7 │ 2017 188 Jacquline Tham, Mohd Shukri Ab Yazid, Abdol Ali Khatibi, S. M. Ferdous Azam INTERNET AND DATA SECURITY – UNDERSTANDING CUSTOMER PERCEPTION ON TRUSTING VIRTUAL BANKING SECURITY IN MALAYSIA behavioural intention is jointly determined by the person’s attitude and subjective norm concerning the behaviour in question. Despite various studies being carried out locally and abroad to understand factors affecting customers intention to adopt new technology, and to understand customers behavior, virtual banking adoption in Malaysia remain low with a penetration rate of less than 20% of the total mobile or internet subscriber (Bank Negara Malaysia report, Mar 2015). A study by Kaspersky Consumer Security Risks survey (2013) revealed almost one-third of virtual banking users do not feel safe making epayments via their smartphones or tablets and 27% of smartphone users are concerned about entering financial information from their gadgets despite after many years of virtual banking introduction in Malaysia. The level of trust in security features available for virtual banking platform remains low. Thus, this study provides an insight of customers virtual banking perception in the contexts of trust, privacy, and security which were acknowledged by many researchers on its importance. Additional constructs adapted for the study of virtual banking such as security, cost, mobility, use situation, expressiveness, convenience, speed of transaction, social reference groups, facilitating condition, the attractiveness of alternatives, privacy, system quality, and technology anxiety but few paper examine user perception from the security perspective (Yan & Yang, 2015; Mansour, Eljelly & Abdullah, 2016). By understanding customers perception, it will provide local banks a comprehensive knowledge of what customers perceive to proper strategize their future virtual banking approaches. This study will also assist future researchers in the area of understanding customers preferences and level of confidence in accepting new technology concerning virtual banking. For downloading the full article, please access the following link: https://oapub.org/soc/index.php/EJSSS/article/view/199 European Journal of Social Sciences Studies - Volume 2 │ Issue 7 │ 2017 189