Factors influence consumers’ acceptance of digital banking services at Islamic banks.

As the world moves forward to the Fourth Industry Revolution, countries have intensely pursued the development of new technology in all sectors, financial sectors included. The Covid-19 outbreak has forced consumers to shift to digital banking services which has led to rapid growth in digital banking usage in the past few years. Bank Negara Malaysia hastened its digitization planning by announcing a new digital bank license to the five successful applicants signifies the readiness of Malaysia's economy to enter a
new digital era. The entrance of these new players may consider the most significant disruption to the financial market, especially for traditional banks. The existence of new entrants undoubtedly will impose a potential threat to the traditional Islamic banks which may force them to speed up their digitalization plan to cater the consumer demand. The critical element for the success of the digitalization plan depends on the consumer's acceptance of digital banking services. This research intends to explore the factors that affect consumers' acceptance of digital banking services at Islamic banks. The factors observed for this study are perceived usefulness, perceived ease of use, security and privacy, and knowledge that has been adapted from previous studies. Online questionnaire was distributed to the 1370 employees of Majlis Amanah Rakyat (MARA), however only 300 responses were
returned for this study. The findings indicate that perceived usefulness, perceived ease of use, security, and privacy have significantly influenced consumers’ acceptance of using digital banking services while knowledge has no influence on consumers’ acceptance of digital banking services at Islamic Banks. These findings will provide crucial insight into consumers' perception of current digital banking services particularly after the Covid-19 pandemic, which will support the Islamic banks to enhance the quality of their services according to consumers' demands.