CUSTOMER SATISFACTION ON E-BANKING SERVICES AMONG UNIVERSITY STUDENTS IN MALAYSIA
Keywords:
Customer Satisfaction, E-Banking Services, Reliability, Security, Perceived Usefulness.
Abstract
Electronic banking (e-banking) has become increasingly important due to its convenience and benefits to banking customers. The purpose of this study is to examine the factors influencing customer satisfaction with e-banking services among university students in Malaysia. Using a standardized questionnaire, the study utilized a cross-sectional design to collect data from 87 students based in Selangor, Malaysia. The findings show that reliability, security, and perceived usefulness are positively associated with customer satisfaction with e-banking services. These results indicate that customers are more attracted to banks that allow faster transactions via online portals, which are readily available, and customers perceive the system's usefulness in continuing their usage. In addition, customers stress the effectiveness of the website security system as they are concerned with the privacy of their personal information and the safety of their financial transactions while using e-banking. Understanding the factors influencing customer satisfaction with e-banking services will help banking institutions in Malaysia to deliver their customers an effective website with an appropriate setting and upgraded technological development to deliver first-class conditions services.
JEL Classification Codes: M30, M31.
References
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Asiyanbi, H., & Ishola, A. (2018). E-banking services impact and customer satisfaction in selected bank branches in Ibadan metropolis, Oyo state, Nigeria. Accounting, 4(4), 153-160.
Ayo, C. K., Oni, A. A., Adewoye, O. J., & Eweoya, I. O. (2016). E-banking users’ behaviour: E-service quality, attitude, and customer satisfaction. International Journal of Bank Marketing, 34(3), 347-367. https://doi.org/10.1108/IJBM-12-2014-0175
Belás, J., Korauš, M., Kombo, F., & Korauš, A. (2016). Electronic banking security and customer satisfaction in commercial banks. Journal of Security and Sustainability Issues, 5(3), 411-422. http://dx.doi.org/10.9770/jssi.2016.5.3(9)
Bougie, R., & Sekaran, U. (2019). Research Methods for Business: A Skill Building Approach. John Wiley & Sons.
Chen, R. F., Hsiao, J. L., & Hwang, H. G. (2012). Measuring customer satisfaction of Internet banking in Taiwan: scale development and validation. Total Quality Management, 23(7), 749-767.
Choudrie, J., Junior, C. O., McKenna, B., & Richter, S. (2018). Understanding and conceptualising the adoption, use and diffusion of mobile banking in older adults: A research agenda and conceptual framework. Journal of Business Research, 88, 449- 465. https://doi.org/10.1016/j.jbusres.2017.11.029
Das, S. A., & Ravi, N. (2021). A study on the impact of e-banking service quality on customer satisfaction. Asian Journal of Economics, Finance and Management, 48-56.
Enaizan, O. M., Alwi, N. H., & Zaizi, N. J. (2017). Privacy and security concern for electronic medical record acceptance and use: State of the art. Journal of Advanced Science and Engineering Research, 7(2), 23-34.
Farzianpour, F., Pishdar, M., Shakib, M. D., & Toloun, M. R. S. H. (2014). Consumers’ perceived risk and its effect on adoption of online banking services. American Journal of Applied Sciences, 11(1), 47-61.
Forgas-Coll, S., Palau-Saumell, R., Sánchez-García, J., & Fandos-Roig, J. C. (2013). Airline website loyalty formation and the moderating effects of gender and education. Service Business, 7(2), 255-274.
Hair, J. F., Page, M., & Brunsveld, N. (2019). Essentials of Business Research Methods. Routledge.
Hammoud, J., Bizri, R. M., & El Baba, I. (2018). The impact of e-banking service quality on customer satisfaction: Evidence from the Lebanese banking sector. Sage Open, 8(3), 1-12. https://doi.org/10.1177/2158244018790633
Hayati, S., Suroso, A., Suliyanto, S., & Kaukab, M. (2020). Customer satisfaction as a mediation between micro banking image, customer relationship and customer loyalty. Management Science Letters, 10(11), 2561-2570.
Hussien, M. I., & Abd El Aziz, R. (2013). Investigating e-banking service quality in one of Egypt’s banks: A stakeholder analysis. The TQM Journal, 25(5), 557-576.
Kaushal, V., & Balaini, A. (2016). E-banking: Challenges and issues. Hill Quest, 3(3), 69-73.
Kotler, P., & Keller, K. (2011). Marketing Management. (14th Ed.). New York, NY: Pearson.
Kumar, M., & Gupta, S. (2020). Security perception of e-banking users in India: An analytical hierarchy process. Banks and Bank Systems, 15(1), 11-20.
Kumar, N., & Mehrotra, R. (2022). A study of customer perception regarding issues and challenges in digital banking. Journal of Positive School Psychology, 1874-1878.
Liébana‐Cabanillas, F., Muñoz‐Leiva, F., & Rejón‐Guardia, F. (2013). The determinants of satisfaction with e‐banking. Industrial Management & Data Systems, 113(5), 750-767. https://doi.org/10.1108/02635571311324188
Martins, C., Oliveira, T., & Popovič, A. (2014). Understanding the internet banking adoption: A unified theory of acceptance and use of technology and perceived risk. International Journal of Information Management, 34(1), 1-13.
Mogos, G., & Jamail, N. S. M. (2021). Study on security risks of e-banking system. Indonesian Journal of Electrical Engineering and Computer Science, 21(2), 1065-1072.
Njuguna, P. K., Ritho, C., Olweny, T., & Wanderi, P. M. (2012). Internet banking adoption in Kenya: The case of Nairobi country. International Journal of Business and Social Science, 3(18), 246-252.
Novickytė, L., & Pedroja, G. (2015). Assessment of mergers and acquisitions in banking on small open economy as sustainable domestic financial system development, Economics and Sociology, 8(1), 71-87. https://doi.org/10.14254/2071-789X.2015/8-1/6
Oliver, R. L. (2010). Customer Satisfaction. Wiley International Encyclopedia of Marketing.
Pallant, J. (2020). SPSS Survival Manual: A Step-by-step Guide to Data Analysis using IBM SPSS. Routledge.
Parasuraman, A., Berry, L., & Zeithaml, V. (2002). Refinement and reassessment of the SERVQUAL scale. Journal of Retailing, 67(4), 114-127.
Rawwash, H., Masad, F., Enaizan, O., Eneizan, B., Adaileh, M., Saleh, A., & Almestarihi, R. (2020). Factors affecting Jordanian electronic banking services. Management Science Letters, 10(4), 915-922.
Raza, S. A., Umer, A., Qureshi, M. A., & Dahri, A. S. (2020). Internet banking service quality, e-customer satisfaction and loyalty: The modified e-SERVQUAL model. The TQM Journal, 32(6), 1443-1466.
Ruyter, K., & Bloemer, J. (1999). Customer loyalty in extended service settings: The interaction between satisfaction, value attainment and positive mood. International Journal of Service Industry Management, 10(3), 320‐336.
Saidi, N. A., Azib, N. A., Amran, N. A., Sulham, N. E. S., Anuar, N. F. F., & Saidi, N. (2016). Determinants for adoption of e-banking among bank’s customers. International Journal of Accounting, Finance and Business, 1(2), 37-44.
Suresh, A., & Rani, N. J. (2021). Barriers and Challenges faced by Consumers in e-banking Services Sector in India. International Journal of Global Business, 14(1), 13-24.
Ugwuanyi, C. C., Uduji, J. I., & Oraedu, C. (2021). Customer experience with self-service technologies in the banking sector: evidence from Nigeria. International Journal of Business and Systems Research, 15(4), 405-425. http://dx.doi.org/10.1504/IJBSR. 2021.10029513
Ul Haq, I., & Awan, T. M. (2020). Impact of e-banking service quality on e-loyalty in pandemic times through interplay of e-satisfaction. Vilakshan - XIMB Journal of Management, 17(1/2), 39-55. https://doi.org/10.1108/XJM-07-2020-0039
Usman, O., Monoarfa, T., & Marsofiyati, M. (2020). E-Banking and mobile banking effects on customer satisfaction. Accounting, 6(6), 1117-1128.
Akinyemi, I. O., Asani, E. O., & Adigun, A. A. (2013). An investigation of users’ acceptance and satisfaction of e-banking system as a panacea towards a cashless economy in Nigeria. Journal of Emerging Trends in Computing and Information Sciences, 4(12), 954-963.
Alalwan, A. A., Dwivedi, Y. K., & Rana, N. P. (2017). Factors influencing adoption of mobile banking by Jordanian bank customers: Extending UTAUT2 with trust. International Journal of Information Management, 37(3), 99-110. https://doi.org/10.1016/j.ijinfomgt.2017.01.002
Andrea, H. L. P., Kartonoc, R., & Sundjajad, A. M. (2021). The effect of perceived usefulness, perceived ease of use, perceived risk and technology readiness on intention to use e-banking in Jakarta. Turkish Journal of Computer and Mathematics Education, 12(10), 6829-6836.
Asiyanbi, H., & Ishola, A. (2018). E-banking services impact and customer satisfaction in selected bank branches in Ibadan metropolis, Oyo state, Nigeria. Accounting, 4(4), 153-160.
Ayo, C. K., Oni, A. A., Adewoye, O. J., & Eweoya, I. O. (2016). E-banking users’ behaviour: E-service quality, attitude, and customer satisfaction. International Journal of Bank Marketing, 34(3), 347-367. https://doi.org/10.1108/IJBM-12-2014-0175
Belás, J., Korauš, M., Kombo, F., & Korauš, A. (2016). Electronic banking security and customer satisfaction in commercial banks. Journal of Security and Sustainability Issues, 5(3), 411-422. http://dx.doi.org/10.9770/jssi.2016.5.3(9)
Bougie, R., & Sekaran, U. (2019). Research Methods for Business: A Skill Building Approach. John Wiley & Sons.
Chen, R. F., Hsiao, J. L., & Hwang, H. G. (2012). Measuring customer satisfaction of Internet banking in Taiwan: scale development and validation. Total Quality Management, 23(7), 749-767.
Choudrie, J., Junior, C. O., McKenna, B., & Richter, S. (2018). Understanding and conceptualising the adoption, use and diffusion of mobile banking in older adults: A research agenda and conceptual framework. Journal of Business Research, 88, 449- 465. https://doi.org/10.1016/j.jbusres.2017.11.029
Das, S. A., & Ravi, N. (2021). A study on the impact of e-banking service quality on customer satisfaction. Asian Journal of Economics, Finance and Management, 48-56.
Enaizan, O. M., Alwi, N. H., & Zaizi, N. J. (2017). Privacy and security concern for electronic medical record acceptance and use: State of the art. Journal of Advanced Science and Engineering Research, 7(2), 23-34.
Farzianpour, F., Pishdar, M., Shakib, M. D., & Toloun, M. R. S. H. (2014). Consumers’ perceived risk and its effect on adoption of online banking services. American Journal of Applied Sciences, 11(1), 47-61.
Forgas-Coll, S., Palau-Saumell, R., Sánchez-García, J., & Fandos-Roig, J. C. (2013). Airline website loyalty formation and the moderating effects of gender and education. Service Business, 7(2), 255-274.
Hair, J. F., Page, M., & Brunsveld, N. (2019). Essentials of Business Research Methods. Routledge.
Hammoud, J., Bizri, R. M., & El Baba, I. (2018). The impact of e-banking service quality on customer satisfaction: Evidence from the Lebanese banking sector. Sage Open, 8(3), 1-12. https://doi.org/10.1177/2158244018790633
Hayati, S., Suroso, A., Suliyanto, S., & Kaukab, M. (2020). Customer satisfaction as a mediation between micro banking image, customer relationship and customer loyalty. Management Science Letters, 10(11), 2561-2570.
Hussien, M. I., & Abd El Aziz, R. (2013). Investigating e-banking service quality in one of Egypt’s banks: A stakeholder analysis. The TQM Journal, 25(5), 557-576.
Kaushal, V., & Balaini, A. (2016). E-banking: Challenges and issues. Hill Quest, 3(3), 69-73.
Kotler, P., & Keller, K. (2011). Marketing Management. (14th Ed.). New York, NY: Pearson.
Kumar, M., & Gupta, S. (2020). Security perception of e-banking users in India: An analytical hierarchy process. Banks and Bank Systems, 15(1), 11-20.
Kumar, N., & Mehrotra, R. (2022). A study of customer perception regarding issues and challenges in digital banking. Journal of Positive School Psychology, 1874-1878.
Liébana‐Cabanillas, F., Muñoz‐Leiva, F., & Rejón‐Guardia, F. (2013). The determinants of satisfaction with e‐banking. Industrial Management & Data Systems, 113(5), 750-767. https://doi.org/10.1108/02635571311324188
Martins, C., Oliveira, T., & Popovič, A. (2014). Understanding the internet banking adoption: A unified theory of acceptance and use of technology and perceived risk. International Journal of Information Management, 34(1), 1-13.
Mogos, G., & Jamail, N. S. M. (2021). Study on security risks of e-banking system. Indonesian Journal of Electrical Engineering and Computer Science, 21(2), 1065-1072.
Njuguna, P. K., Ritho, C., Olweny, T., & Wanderi, P. M. (2012). Internet banking adoption in Kenya: The case of Nairobi country. International Journal of Business and Social Science, 3(18), 246-252.
Novickytė, L., & Pedroja, G. (2015). Assessment of mergers and acquisitions in banking on small open economy as sustainable domestic financial system development, Economics and Sociology, 8(1), 71-87. https://doi.org/10.14254/2071-789X.2015/8-1/6
Oliver, R. L. (2010). Customer Satisfaction. Wiley International Encyclopedia of Marketing.
Pallant, J. (2020). SPSS Survival Manual: A Step-by-step Guide to Data Analysis using IBM SPSS. Routledge.
Parasuraman, A., Berry, L., & Zeithaml, V. (2002). Refinement and reassessment of the SERVQUAL scale. Journal of Retailing, 67(4), 114-127.
Rawwash, H., Masad, F., Enaizan, O., Eneizan, B., Adaileh, M., Saleh, A., & Almestarihi, R. (2020). Factors affecting Jordanian electronic banking services. Management Science Letters, 10(4), 915-922.
Raza, S. A., Umer, A., Qureshi, M. A., & Dahri, A. S. (2020). Internet banking service quality, e-customer satisfaction and loyalty: The modified e-SERVQUAL model. The TQM Journal, 32(6), 1443-1466.
Ruyter, K., & Bloemer, J. (1999). Customer loyalty in extended service settings: The interaction between satisfaction, value attainment and positive mood. International Journal of Service Industry Management, 10(3), 320‐336.
Saidi, N. A., Azib, N. A., Amran, N. A., Sulham, N. E. S., Anuar, N. F. F., & Saidi, N. (2016). Determinants for adoption of e-banking among bank’s customers. International Journal of Accounting, Finance and Business, 1(2), 37-44.
Suresh, A., & Rani, N. J. (2021). Barriers and Challenges faced by Consumers in e-banking Services Sector in India. International Journal of Global Business, 14(1), 13-24.
Ugwuanyi, C. C., Uduji, J. I., & Oraedu, C. (2021). Customer experience with self-service technologies in the banking sector: evidence from Nigeria. International Journal of Business and Systems Research, 15(4), 405-425. http://dx.doi.org/10.1504/IJBSR. 2021.10029513
Ul Haq, I., & Awan, T. M. (2020). Impact of e-banking service quality on e-loyalty in pandemic times through interplay of e-satisfaction. Vilakshan - XIMB Journal of Management, 17(1/2), 39-55. https://doi.org/10.1108/XJM-07-2020-0039
Usman, O., Monoarfa, T., & Marsofiyati, M. (2020). E-Banking and mobile banking effects on customer satisfaction. Accounting, 6(6), 1117-1128.
Published
2023-01-28
How to Cite
Halim, H., Basar, S. A., Hamzah, H., Sukrri, N. N. A. N. M., & Bhuiyan, A. B. (2023). CUSTOMER SATISFACTION ON E-BANKING SERVICES AMONG UNIVERSITY STUDENTS IN MALAYSIA. Asian Finance & Banking Review, 7(1), 1-9. https://doi.org/10.46281/asfbr.v7i1.1916
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Copyright (c) 2023 Hasnita Halim, Suria Abu Basar, Hanissah Hamzah, Nik Nor Amalina Nik Mohd Sukrri, Abul Bashar Bhuiyan
This work is licensed under a Creative Commons Attribution 4.0 International License.
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