Customer perceptions of online banking in malaysia

How to cite this article: Issues of E-Banking Transaction: Journal of Applied Sciences, 9:

Customer perceptions of online banking in malaysia

Customers are being facilitated by reducing their visits in banks and they can carryout their transactions via internet or ATM Machines instead of personally visiting the branches. The researches so far done reveal that mostly the customer of banks are unaware about online banking services and there is a lack of trust among customers on online banking services.

Especially Pakistan is far behind the developing countries as a lot of services regarding online banking are not available in Pakistan. This study examines the customer perception, preferences, problems and suggestions about online banking in Pakistan. The study reveals that mostly customers prefer internet banking IB services over branch banking due to reliability, convenience, speed, safety and security, cost effectiveness, user-friendly, and error free system.

In contrast the parallel finding shows that security problems, lack of trust and knowledge, ATM machine problems etc. The services which are not in Pakistan e. This study will helps the banks that how they can improve the level of online banking services in Pakistan and what are the potential issues or services that should be introduced in society to facilitate the customer in a better way and to compete their rivals in banking industry as a whole.

With the help of online banking several types of services through which customers can request information and carry out their banking transaction such as balance inquiry, inter account transfers, utility bills payment, request check book etc. Daniel, ; Mols, ; Sathye, In future along with physical market competition the virtual market market space also going to take place Rayport and Sviokla, a, b.

Due to this fact more and more banking companies thinking about switching their businesses from the physical to virtual market online technology. As advancements in technology and information system are arising rapidly and different kinds of electronic banking systems are introducing by banks, where each system has a unique and systematic way that facilitate the user to interact with the bank in easiest way.

In online business trust, security and safety are the most challenging issues for the banks. The security problems have a large contribution to reduce customer satisfaction. The success of any new product and service is highly depending on customer acceptance and customer satisfaction. In contrast the customer dissatisfaction and resistance is one of the major causes of market failure of innovation Ram and Sheth, In online banking business the Automated Teller Machine ATM is the first popular system that was introduced to facilitate the users to access and carryout their banking transactions in minimum time.

Mobile banking has a great contribute in online banking revolution, which is giving a competitive edge to the banks against their rivals. Customers feel that after monetary transaction the SMS should be received and they prefer the version of the IVR Interactive Voice Response banking service that provides out-of-band SMS confirmation over those one that does not Peevers et al, We explore those major reasons due to which customers prefer, and satisfied or not satisfied with Internet banking services and those services which should be launched in Pakistan by the banks to compete global market.

Today, quite a few banks operate solely via the Internet in Pakistan and other banks are trying to emerge their banking system with this technological change.

Allied bank is the pioneer in the field of online banking and introduce online banking system in in Pakistan. Allied bank has the biggest ATM network with branches in the country.

Objective of the Study The main objective of this study is to know about the customer perception regarding the usage of online banking in Pakistan. The study further explores either customer feels the Internet Banking as a valuable and useful step of technology in banking services or not.

For this purpose to conduct the research in every city of Pakistan is very difficult because data collection is not an easy task at national level.

In order to know all about Internet Banking, the information which is gathered is split up into 3 parts. Initially, the study explored that why customers use internet banking IB.

Secondly, why customers do not use IB and in the last we took customer perceptions about improvements that should bring in IB services in Pakistan. The following objectives will be investigated from this research. Determining the main reasons for not using IB.

Determine the customer perception about new IB product and services. This research will help the managers to cope the problems of customers about IB services which are indicated in the study.

Customer perceptions of online banking in malaysia

The customers views have also been taken in same study about those IB services which still not available in Pakistan whereas they are available in other developed countries.

Hypothesis Testing Three objectives and hypothesis are generated which are given below.Despite the exponential growth, the mobile banking penetration rate is slow compared to online banking. This study aims to highlight the issues and challenges of mobile banking and to have insight on young adulthood perceived risk towards mobile banking, specifically in Malaysia.

Online Banking In Malaysia From Consumer Perception On Risk _____ i ONLINE BANKING IN MALAYSIA FROM CONSUMER PERCEPTION ON RISK BY ANG HUI TING FOONG SOOK KUEN GAN LEE XIEN LIM YIN YING WONG SIOW YEW A research project submitted in partial fulfillment of the requirement for the degree of.

Customer perceptions of online banking in malaysia

Since the competition is just a click of the mouse away, customer loyalty in online banking is very important for both and competitive reasons (Floh & Treiblmaier, ). Hence there is a need to understand how customer loyalty in online banking can be ensured and maintained.

PC banking, online banking, and Internet banking refer to a number of ways in which clients can contact their banks without having to be physically present at a bank branch. PC Banking relates to every banking business transacted from a customer's PC.

For instance, as Yu () stated, only 25, of Maybank customers were using it online banking service and this rate for HSBC was only 10, users, however, in number of internet banking customers in Malaysia reached to more than million users . service quality and customer satisfaction user satisfaction of libraries, customer satisfaction is defined as “the levels of service quality performances that meets users’ expectations”.

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