Perceived Risk towards Mobile Banking: A case study of Malaysia Young Adulthood

Abstract

The advancement of technology and the raise of smart devices ownership in Malaysia has eventually increase the exploration of mobile banking services. Mobile banking has been first commercialized in Malaysia on 2005 and expected to growth. Despite the exponential growth, the mobile banking penetration rate is slow compared to online banking. This study aims to highlight the issues and challenges of mobile banking and to have insight on young adulthood perceived risk towards mobile banking, specifically in Malaysia. In order to support the exploratory study, these risks are surveyed in quantitative study conducted among young adulthood in Malaysia. The self-administered questionnaire distributed through email with 384 respondents indicated that the most impacted facets perceiveed risks are performance risk, following by security risk. The results of this study can be used by the practitioner to address the customer challenges, customer interest and concern for mobile banking service improvement.