Internet Service Features and Satisfaction among Internet Banking Users

Abstract

Internet banking gives customers the option to perform banking transactions and other related activities on the go or from home, twenty-four hours a day, 365 days a year. With improved efficiency and effectiveness more transactions can be processed faster and conveniently, which impact the overall bank’s performance. Banks want their customers to migrate from conventional banking to internet banking a means to ease their transaction processes. However, it is rather difficult to get a buy-in among customers as many are worried about the application limitations, security issues and inadequacies of internet connection quality. Though the numbers of internet banking users have increased annually, the numbers of active users are still unimpressive. A sizeable percentage of bank customers are either not ready or unwilling to use internet banking. Hence, to strategize and convince customers to use internet banking, mandates the need to understand their satisfaction on key service features offered through internet banking to them. A conceptual model with nine factors namely, ease of use, accessibility, feature availability, customer support, security, privacy, content, fees and charges, and also transaction and payment was developed and empirically tested using self-report survey data from 120 internet banking users from 3 branches in Shah Alam, Selangor. Simple random sampling was used to select respondents and data analyzed through SPSS. Four factors that is, ease of use, customer support, privacy, and transaction and payment were found to have significantly influenced customer satisfaction toward internet banking transaction. This calls for continuous innovation among banking institutions to enhance these service features to sustain the interest and satisfaction of their internet banking users.