Internet Banking: from the Perspectives of Malaysian Islamic 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 150 responses were received from questionnaires distributed to bank Managers and bankers in Terengganu, Pahang, Selangor and Kuala Lumpur. They provide no conflicting views. Internet banking enhances customer service, it is perceived to have not reduced human resource and banker-customer relationships. Hence, this finding suggests that the management should continue to offer services to its customers by internet. Internet banking should be used as an informational and transactional tool to complement and enhance banking operations.