International Journal of Innovative Research in Computer Science & Technology (IJIRCST) ISSN: 2347-5552, Volume-2, Issue-5, September-2014 22 Factors that Influence Internet Banking Adoption among Post-Graduate Students Mohd Sazili Shahibi, Sham Sul Kamal Wan Fakeh, Adnan Jamaludin, Norhayati Hussin, Zahari Mohd Amin, Mawar Murni Sarip Abstract — Internet banking is increasingly becoming popular because of its convenience and flexibility. The growing popularity of internet banking was synchronized with rapidly changing technology. The main objective of this research is to investigate the factors that influence Internet banking adoption among student. Trust, perceived ease of use, perceived usefulness and service quality were examined to determine if these factors are affecting internet banking adoption. The research setting among postgraduate student (part time student) in Faculty of Information Management and Faculty of Computer and Mathematical Sciences at Universiti Teknologi MARA. A total of 170 questionnaires was coded and analysed by using SPSS software. Keyword: Internet banking, customer adoption. I. INTRODUCTION Internet technology has brought an improvement in the business performance. By right, it is currently fully utilized by many companies in order to influence their customer to use it. However, it has become a crucial or significant measure of the success or effectiveness of user adoption towards that technology. The development of information and communication technology in 20 past years has impacted business environment as well as individuals. Internet banking (IB) is an essential technological innovation with potential to change the structure and nature of banking. Customer satisfaction and customer retention are increasingly developing into key success factors in e- banking (Bauer et al., 2005). According to Saffu et al. (2008), there is an increase in application of e-commerce Manuscript received September 15, 2014 Mohd Sazili Shahibi, Faculty of Information, University Teknologi (UiTM) Mara Shah Alam, Selangor Malaysia, 03-79622047 Selangor Darul Ehsan Malaysia, Sham Sul Kamal Wan Fakeh, Faculty of Information, University Teknologi (UiTM) Mara Shah Alam, Selangor Malaysia, 03-79622047 Selangor Darul Ehsan Malaysia, Adnan Jamaludin, Faculty of Information, University Teknologi (UiTM) Mara Shah Alam, Selangor Malaysia, 03-79622047 Selangor Darul Ehsan Malaysia, Norhayati Hussin, Faculty of Information, University Teknologi (UiTM) Mara Shah Alam, Selangor Malaysia, 03-79622047 Selangor Darul Ehsan Malaysia, Zahari Mohd Amin, Faculty of Information, University Teknologi (UiTM) Mara Shah Alam, Selangor Malaysia, 03-79622047 Selangor Darul Ehsan Malaysia, Mawar Murni Sarip., Faculty of Information, University Teknologi (UiTM) Mara Shah Alam, Selangor Malaysia, 03-79622047 Selangor Darul Ehsan Malaysia, in business in the past ten years. Others perspective from McKechnie et al. (2006) and Meuter et al. (2003), they stated that Internet banking, ATMs, telephone banking and electronic retailing are some of the most popular form for self-service technology. However, even the customer can see the benefits of using it, they still to refuse from use it if they do not feel ready and comfortable to use that such technology. That is the reason why banking industry still having the problem in return of investment in technology because customers fail to accept of fully utilized its capabilities. Pang (1995), reported that electronic banking started in Malaysia in 1970’s. However, in Malaysia only banking institutions licensed under the Banking and Financial Institution Act 1989 (BAFIA) and the Islamic Banking Act 1983 (IBA) are allowed to offer internet banking services. Perumal and Vignesen (2004) was stated that, during the initial stages when the Internet banking revolution commenced in Malaysia in year 2000, the growth of Internet banking has been very encouraging and consequently, more and more banks began to provide Internet banking services to their customer. Maybank pioneered to provide online banking services to their users through its web portal (Heo Hong, 2013). Prior to 2002, only the foreign banks were allowed to provide online banking transactions in Malaysia. In recent years, most of the Internet banking adoption studies (1999-2011) investigated the respondents “intention to adopt” (Tan & Teo, 2000; Shih & Fang, 2004 & Hernandez & Mazzon, 2007) or comparison between adopters and non-adopters (Sathye, 1999; Suganthi et al., 2001; Gerrard and Gumingham, 2003; Akinci et al., 2004; Chan & Lu, 2004; Laforet & Li, 2005; Lee et al., Gerrard et al., 2006; Awamleh & Fernandez, 2006; Polasik & Winsniewski, 2009 & Foon & Fah, 2011). Besides that, several research works have explored the concept of Internet banking in developed countries (Kwan, 2000; Courchane et al., 2002; Pikkarainen et al., 2004; Mattila and Mattila, 2005; Roussos, 2007; Forrester Research, 2009; The World Bank, 2009; Athanasios et al., 2012; Yousafzai and Yani- de-Soriano, 2012). Yet, few studies have explored the factors influencing the adoption of internet banking for developing countries. In addition, many researchers have applied several theories to predict the factors that influence individuals to use internet banking and some of these theories include technology acceptance model (TAM) (Davis, 1989), theory of reasoned action (TRA) (Fishbein and Ajzen, 1975) and theory of planned behavior (TPB) (Ajzen, 1991). Nevertheless, this research