Channel Innovation in Commercial Banking Sector : A Malaysian Perspective

The study on Banking Channel Innovation was conducted in Klang Valley in Malaysia. It investigates the impact of demographic characteristics on the adoption of retail internet banking among consumers in the commercial banking sector. The study adopted a quantitaive approach using survey questionnaire to collect data from respondents at the variuos banking outlets in Klang Valley. The results indicated that age and income levels exhibited significant relationship with adoption of retail internet banking. Whereas, gender, race, education and ocupation did not affect the adoption of retail internet banking in the Malaysian context. The result shows that younger consumers favor new banking channel. Therefore, bankers should promote internet banking among younger generation and also educate older consumers that adoption of internet banking is free from risk.