This is a study about Internet banking acceptance in Malaysia. Due to the impending
liberalization, Malaysian banks are desperately embracing this new distribution channel to
prepare themselves for the competition which is looming in the near future. Although the
awareness level is high, this has not translated into actual use as only 23% have had some
Internet banking experience. Security, availability of infrastructure and complexity of
technology were main concerns reported by the respondents which is hindering the migration
from traditional banking to Internet banking. In terms of external variables only prior
experience and external pressure has been found to influence the intention to use. Perceived
ease of use and perceived usefulness has been found to be significantly related to intention
and perceived usefulness has been found to be a better predictor of intention to use compared
to ease of use. In short it can be concluded that perceived usefulness is the driver of the
intention to use Internet banking. The implications of this research is further explored
