Customers Perception on E-Banking in Malaysia
Introduction
E-Banking or Internet and Online Banking is the new bandwagon for the e-commerce society. This change in the environment of making business worthwhile has a philosophy in bringing the convenience right through the tips of the customer’s fingers. This interactive idea on making the transactions in the fastest has been already under the series of testing regarding the reliability and security. Moreover, there are still other factors that can be consider before taking the action in changing the traditional way of making business for the banking industry. Mostly, this change is very inevitable for the developing countries and taking the e-banking in their system plays a critical role, most especially if the banking industry is in the middle of predicament likely in the financial crisis.
Research Objectives
The objective of the study is to provide the information regarding the perceptions of the customers regarding the e-banking. With the accomplishment of this objective, there will be a great advantage knowing the suitable service for the customers in terms of their relationship with the banks.
Literature Review
The banking industry is not an exception in the global call of modernization. Increasingly, the banking industry is characterized by various competitors that lead the organization to provide extension on the services they offer. Banking and the financing services of different countries are expected to provide the financial assistance and stay positive although there is a great influence from the economic crises. However, the trend towards the internationalization takes the conventional banking into a serious and yet rapid phase of change. In the online banking, there is no such big change for the products and services that the banks offer are almost the same as in the traditional setting. The only difference that may be take into account is the power of the customers to use the bank’s services even if it is non-banking hours, the client is out of the country, or through the busy schedules that the client in handling and could not afford to rush to the bank to check some details. This online or e-banking is in growing popularity on their clients that are in corporate world and travelers. E-banking gives the client the various options and the opportunity to choose from their vast banking services, which is an advantage for both clients and bank because of the support coming from the technology. In addition, the partnership of the bank and the technology is inevitable because there is a continuous development of technology that promises to bring competencies for the company. In addition, the easy access of the e-banking among their customers can lead to the creation of the customer satisfaction and at the same time, reducing the operating costs. Convenience is the center of the bank and technology’s collaboration that highly attracts the high profiled clients.
On the other hand, the conventional or the traditional banking remains in the banking practices and still focus on serving the walk in customers. The electronic banking or e-banking has set the operations, such as providing the services ranging from paying the bills up to making some investments. Still, there are challenges that keep holding back in adapting the e-banking in some parts of the banking industry. One small limitation is the inability to process the cash withdrawals even if the client insisted. For some security measures, this type of service is inactive in the banks. The era of the technology can be also the cheapest link of globalization, but the reliability of the technology such as the confidence in using the computers as the portal in making transactions are also under the threats of the information hackers. This and other arising challenges can be drawback in fully accepting the e-banking as a new mobility for transactions. However, the acceptance of the banking industry in to the changes can place an intense competition in the market.
Methodology
The suggested method which is also applicable in the study is the use of the questionnaires wherein the banks can determine the level of understanding of the customers about the online banking and the other related services. Also through the help of the questionnaires, the banks can measure the influence or the impact of the interactive banking in finding solutions out of the client’s busy life. All of the information created out of the questionnaires will lead to the determination of the various perceptions of the customers in the services that is offered through the use of Internet.
References:
Goi, C.L., 2005. E-Banking in Malaysia: Opportunity and Challenges, Journal of Internet Banking and Commerce, Vol. 10, No. 3 [Online] Available at: http://www.arraydev.com/commerce/JIBC/2006-02/GOI.htm [Accessed 29 March 2010].
Kaufman, G.G., 2000. Banking and Currency Crises and Systemic Risk: Lessons from Recent Events, Economic Perspectives, Vol. 24, No. 3.
Padachi, K., Rojid, S., & Seetanah, B., 2007. Analyzing the Factors that Influence the Adoption of Internet Banking in Mauritius, Computer Science and IT Education Conferences [Online] Available at: http://csited.org/2007/72PadaCSITEd.pdf [Accessed 29 March 2010]
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