Wearable Banking: A Study of Adoption Factors in Islamic Banking Institutions


  • Hafizi Muhamad Ali MS – IMT Department Yanbu University College Yanbu Al Sinaiyah, Saudi Arabia
  • Rohaya Shaari Management Sciences Department Yanbu University College Yanbu Al Sinaiyah, Saudi Arabia




Wearable Banking, Islamic Bank, Convenience, Perceived Usefulness, Information of Wearable Banking, Perceived Risk, Security and Privacy, Government Support


Wearable banking has been coined by banking institutions in providing the latest technology to their customers. This study investigates the determinants which attract the Islamic banks’ customers to adopt wearable banking in Malaysia. The sample size of 350 respondents has been selected from ten Islamic banks in Malaysia using the survey research instrument questionnaire. Data has been analyzed using software SPSS 15.0. The confirmatory factor analysis with multiple regressions technique has been applied. The result of regression analysis shows that Perceived Usefulness, Information of Wearable Banking, Perceived Risk, Security and Privacy shows more influence in increasing the intention of customers to adopt wearable banking services. Meanwhile, Government Support provides more influence for the bankers in adoption of wearable banking services. This study proves that bankers should emphasize more on wearable banking, since bank customers believe it is a convenient method when adopting the banks services.


[1] Akhlaq, M. A., and A. Shah. (2011), ‘Internet banking in Malaysia: Finding Complexities’, Journal of Internet Banking and Commerce (JIBC), Vol. 16 No.1, pp. 1-14.
[2] Adams, J. (2014), ‘Why bankers should pay attention to wearables. American Banker, Dec 2014. Retrieved http://www.ameriacnbanker.com/news/bank-technology.
[3] Amini, M. T., M. Ahmadinejad and M. J. Azizi. (2011), ‘Adoption of internet banking by Iranian Customer: An Empirical Investigation’, The International Journal of Management Science and Information Technology (IJMSIT), Vol. 1 No 1, pp. 47-64.
[4] Ajzen I., and Fishbein M. (1975), “Beliefs, Attitude, Intention, and Behavior: An Introduction to Theory and Research”, MA, USA: Addison-Wesley.
[5] Bank Negara Malaysia. (2013), ‘Annual Report 2013’. Kuala Lumpur: Bank Negara Malaysia.
[6] Bartlett, M. S. (1954), ‘A further note on the multiplying factors for various X2 approximations in factor analysis’. Journal of the Royal Statistical Society, Vol. 16, pp. 296−298
[7] Chau, V. S., and L. W. NgaI. (2010), ‘The youth market for internet banking services: perceptions, attitude and behaviour’, Journal of Services Marketing, Vol.24 No.1, pp. 42–60.
[8] Chong, A. Y.L., K.B. Ooi B. Lin and B.I. Tan. (2010), ‘Online banking adoption: an empirical analysis’, International Journal of Bank Marketing, Vol.28 No.4, pp. 267-287.
[9] Crosram, P. (2014), ‘Google glass still too new to interest bankers: survey’, American Banker, Nov 2014.Retrieved http://www.americanbanker.com/news/bank-technology.
[10] Davis, F. D. (1989), ‘Perceived Usefulness, Perceived Ease Of Use, And User Acceptance of Information Technology’, MIS Quarterly, Vol.13 No.3, pp.319.
[11] Eze, U. C., L. H. Yaw J. K. Manyeki and L. C. Har. (2011), ‘Factors Affecting internet banking Adoption among Young Adults: Evidence from Malaysia’, International Conference on Social Science and Humanity, IPEDR, 5.
[12] Ho, C. T. B., and W.C. LiN. (2010), ‘Measuring the service quality of internet banking: scale development and validation’, European Business Review, Vol.22 No.1, pp.5-24.
[13] Kaiser. H. (1974), “An index of factorial simplicity.” Psychometrika, Vol.39 Nol.1, pp.31-36.
[14] Kasheir, D. E., A. S. Ashour, and O. M. Yacout. (2009), ‘Factors Affecting Continued Usage of internet banking Among Egyptian Customers’, Communications of the IBIMA, Vol.9, pp.252-263.
[15] Nasri, W. (2011), ‘Factors Influencing the Adoption of internet banking in Tunisia’, International Journal of Business and Management, Vol.6 No.8, pp.143-160.
[16] Pallant, J. (2005), SPSS Survival Manual: a step by step guide to data analysis using SPSS for Windows, Version 15, 3rd Ed. Buckingham: Open University Press.
[17] Sadeghi.T. and Farokhian, s. (2011), ‘The Role of Behavioral Adoption Theories in Online Banking Services’, Middle-East Journal of Scientific Research, Vol.7 No. 3, pp. 374-380.
[18] Shaari, R. and Ali, H. M. (2009), ‘Demographic influenves on internet banking in Malaysia, The IUP Journal of Bank Management, Vol. 8 No. 2, pp. 74-86.
[19] Shaari, R. and Ali, H.M. (2005), ‘Internet banking from the perspectives of Malaysian bankers’, International Journal of Management Studies, Vol. 12 No. 2, pp. 115-124.
[20] Shih, Y.-Y., & Fang, K. (2004), The use of a decomposed theory of planned behavior to study internet banking in Taiwan. Internet Research, Vol. 14 No.3, pp. 213-223.
[21] Taylor, S., and Todd, P. A. (1995), ‘Understanding Information Technology Usage: A Test of Competing Models,’ Information Systems Research, Vol.6 No.2, pp. 144- 176.
[22] The Financial Brand. (2013), ‘Wearbale banking: bank roll out first apps for google glass’, Octpber 2013. Retrieved http://thefinancialbrand.com/34773/wearbale-banking-google-glass-applications.



How to Cite

Ali, H. M., & Shaari, R. (2015). Wearable Banking: A Study of Adoption Factors in Islamic Banking Institutions. Journal of University of Human Development, 1(4), 417–422. https://doi.org/10.21928/juhd.v1n4y2015.pp417-422