• Nurul Afidah Mohamad Yusof Faculty of Business and Finance, Universiti Tunku Abdul Rahman, 31900 Kampar, Perak, Malaysia.
  • Lilian Anthonysamy Faculty of Management, Multimedia University, 63100 Cyberjaya, Selangor, Malaysia.


Background and Purpose: In 2022, the Malaysian central bank granted five licenses to run virtual banks. Despite the high online banking usage in Malaysia, virtual banking is still considered a new experience to potential users and may present challenges as individuals may exhibit resistance and hesitance to adopt. Hence, understanding the factors influencing the intention to adopt virtual banking is crucial for its successful implementation and widespread acceptance. The objective of this study is twofold: 1) to examine the current technology readiness of customers, and 2) to examine the factors influencing customers’ intention to adopt virtual banking in Malaysia.


Methodology: This study adopts a quantitative method where questionnaires were distributed to bank customers as the target population. Data gathered from 157 respondents was analysed using variance-based partial least squares structural equation modelling (PLS-SEM) method.


Findings: The findings of this study revealed that optimism and innovativeness are significant motivators to shape an individual’s positive perception of the use of technology. Meanwhile, bank reputation, performance expectancy, and facilitating conditions have a significant influence on the intention to adopt virtual banking.


Contributions: In light of the inaugural award of digital banking licenses by Bank Negara Malaysia, this study offers valuable insights to the virtual banks to effectively promote the adoption of virtual banking in Malaysia. By combining Technology Readiness (TR) and Unified Theory of Acceptance and Use of Technology (UTAUT) into one research framework, this study employs an integrated model (TRUTAUT) which will provide a more in-depth understanding of the factors influencing customers to adopt the new virtual banking phenomenon in Malaysia. This integrated model posits that both personality dimensions and system-specific dimensions, as represented by TR and UTAUT respectively, have a significant bearing on the customers’ propensity to adopt new technology. In addition, this study also introduces bank reputation construct, which is believed to be important in influencing customer intention to adopt virtual banking.


Keywords: Virtual bank, digital transformation, Technology Readiness (TR), Unified Theory of Acceptance and Use of Technology (UTAUT).


Cite as: Mohamad Yusof, N. A., & Anthonysamy, L. (2024). The rise of virtual banks: Factors influencing its adoption using TRUTAUT framework. Journal of Nusantara Studies, 9(1), 148-173.


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How to Cite
Mohamad Yusof, N. A., & Anthonysamy, L. (2024). THE RISE OF VIRTUAL BANKS: FACTORS INFLUENCING ITS ADOPTION USING TRUTAUT FRAMEWORK. Journal of Nusantara Studies (JONUS), 9(1), 148-173.