Internet Banking: From the Perspective of Malaysian Bankers

Abstract

The electronic revolution in the Malaysian banking sector is now more noticeable as banks are trying to keep abreast with information, communication and technology (ICT). Internet banking is a new delivery channel that offers a one-stop service and information unit to gain competitive advantage in the banking sector. While it promises enormous benefits both to consumers and banks, what do bank managers, as providers perceive internet banking? This article seeks to examine the perceptions of bank managers on internet banking with respect to strategic, operational, customer-related and technological issues. A total of 54 responses were received from questionnaires distributed to bank managers in the Northern region of Malaysia. Interestingly, they provide conflicting views. While internet banking enhances customer service, it is perceived to have reduced human resource and banker-customer relationships. Hence, this finding suggests that the management should continue to offer personalised services to its customers. Internet banking should be used as an informational and transactional tool to complement and enhance banking operations.