Online banking and customer service delivery in Malaysia: data screening and preliminary findings

Abstract The rapid spread of information and communication technology (ICT) has made electronic banking the best channel to provide banking services/products to customers. The quality of online banking services has become a major area of attention among researchers and bank managers due to its strong impact on business performance, profitability and customer service delivery. Hence, banks now consider online banking as part of their strategic plan. This paper provides a model with 5 factors on the following dimensions: cost, convenience, security, online banking and customer service delivery. The study employed some hypotheses in order to guide the research in achieving the overall aim of the research as well as testing the stated hypotheses by using Structural Equation Modelling (SEM). The findings of the study reveal that security and convenience are the major drivers of customer service delivery of online banking in Malaysia. In addition, using online banking service context, the study also found a strong empirical evidence for measuring customer satisfaction with electronic banking services.

[1]  F. I. Anyasi,et al.  Mobile Phone Technology in Banking System: Its Economic Effect , 2009 .

[2]  J. Munusamy,et al.  Service Quality Delivery and Its Impact on Customer Satisfaction in the Banking Sector in Malaysia , 2010 .

[3]  Hayden A Ellis.  Innovation and Entrepreneurship: Practice and Principles , 2014 .

[4]  Nurita Ardhiyani.  INTEGRATING SERVQUAL WITH KANO INTO QUALITY FUNCTION DEPLOYMENT (QFD) FOR BETTER QUALITY OF SERVICES(Case Study : PT Pos Indonesia) , 2010 .

[5]  Peterson Obara Magutu,et al.  Technology and service quality in the banking industry , 2010 .

[6]  A. Ahmad,et al.  E-banking Functionality and Outcomes of Customer Satisfaction: An Empirical Investigation , 2011 .

[7]  Alhaji Abubakar Aliyu,et al.  An Exploratory Study on Adoption of Electronic Banking: Underlying Consumer Behaviour and Critical Success Factors. Case of Nigeria. , 2012 .

[8]  Hyung Seok Lee,et al.  Effects of Information Intermediary Functions of ComparisonShopping Sites on Customer Loyalty , 2011 .

[9]  Z. Rahman,et al.  Capturing the customer’s voice, the centerpiece of strategy making , 2004 .

[10]  B. Suganthi.  INTERNET BANKING PATRONAGE: AN EMPIRICAL INVESTIGATION OF MALAYSIA , 2001 .

[11]  Rahmath Safeena,et al.  Internet Banking Adoption in an Emerging Economy: Indian Consumer's Perspective , 2011, Int. Arab. J. e Technol..

[12]  A. Abubakar,et al.  The Impact of Information and Communication Technology on Banks’ Performance and Customer Service Delivery in the Banking Industry , 2012 .

[13]  T. Ramayah,et al.  RECEPTIVENESS OF INTERNET BANKING BY MALAYSIAN CONSUMERS: THE CASE OF PENANG , 2003 .

[14]  Markku Tinnilä.  Impact of Future Trends on Banking Services , 2012 .

[15]  A. Parasuraman,et al.  A Conceptual Model of Service Quality and Its Implications for Future Research , 1985 .

[16]  H. A. Kadir,et al.  Impacts of service quality on customer satisfaction: Study of Online banking and ATM services in Malaysia , 2011 .

[17]  Mamta Bhatt,et al.  An Explorative Study of Satisfaction Level of Cyber-Crime Victims with Respect to E-Services of Banks , 2012 .

[18]  Mahendhiran Nair,et al.  The effects of customer service management on business performance in Malaysian banking industry: an empirical analysis , 2006 .

[19]  Shah Ankit.  Factors Influencing Online Banking Customer Satisfaction and Their Importance in Improving Overall Retention Levels: An Indian Banking Perspective , 2011 .

[20]  Dube Thulani,et al.  Journal of Internet Banking and Commerce , 2022 .

[21]  S. Roy,et al.  Generic technology-based service quality dimensions in banking: Impact on customer satisfaction and loyalty , 2011 .

[22]  N. Kano,et al.  Attractive Quality and Must-Be Quality , 1984 .

[23]  Azman Ismail,et al.  SERVICE QUALITY DIMENSIONS, PERCEIVE VALUE AND CUSTOMER SATISFACTION: ABC RELATIONSHIP MODEL TESTING , 2009 .

[24]  T. Ward,et al.  Measuring Banks' Automated Service Quality: A Confirmatory Factor Analysis Approach , 2005 .

[25]  A. Abubakar,et al.  Crime and the (Mediterranean) City: Exploring the Geography of (In) Security in Rome, Italy , 2012 .

[26]  V Malarvizhi.,et al.  An analysis on the usage of E-banking services in coimbatore city , 2011 .