The study is focused on the transformation of service channels in retail banking among consumers in Klang Valley. It investigated whether the consumer behavioural factors such as easier to operate,convenient to use, no hassle, reliability, safer to use and good connections varies between adopters and non-adopters of retail internet banking. The results indicated that there are significant differences between internet banking adopters and non-adopters in terms of easier to operate, convenient to use, no hassle, reliability, safer to use and good connections. Therefore, the results support the findings of the previous research works conducted in other cultures. The results suggest several implications for retail bankers in Malaysia to minimize the risk perception of the internet banking among the non-adopters of the internet banking through greater awareness and education process.The commercial banks in Malaysia can expect substantial cost savings from maintaining their large physical distribution systems by promoting retail internet banking services on a bigger scale.