Customer satisfaction level in Malaysian online banking industry

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5.1 Introduction:

Exploring effective factors on the customer satisfaction level in Malaysian online banking industry was the first aim of this paper; besides, examining the relationship between customer satisfaction and the loyalty while trust has a mediating role was the next purpose in this research. This chapter will give an overall conclusion of results; furthermore, possible reasons for these results will be discussed. Offering the implication in the real online banking industry and further researches will be opened in this chapter.

5.2 conclusions:

In spite of the fact that numerous researches work on the customer satisfaction and the factors related to this issue, there is limited numbers of studied which explore these factors in Malaysia online banking industry. Moreover, other objective of present study was to investigate the customer satisfaction and their evaluation on electronic banking services and the role of trust in explaining customer loyalty to these online banks service provider, in other word, the mediating role of trust between loyalty and customer satisfaction in online banking was investigated.

Base on the findings in the chapter4 for the first part of the model, all hypothesizes were accepted. It can be concluded that all factors in the model included the website design, customization, information quality, and the security affect the customer satisfaction level in online banking.

Base on the first hypothesis, the website design will influence customer satisfaction level positively and significantly. The dimension for measuring the website design in this study were Presenting uncluttered screens, providing easy-to-follow search paths, presenting information fast. Consequently the more banks websites' holders work on design of their websites, the more they can expect to attract customers and make them satisfied. In the line with the priors studied in this issue such as Pastrick (1997).

Next variable which will affect the customer satisfaction in Malaysia was customization. Understanding the online consumer, online consumer decision making, personalization are items for examining the customization. Priors to this study Srinivasan, Anderson, and Ponnavolu's (2002) investigated the customization effect on the online services; consequently, this research explores the same result as the Srinivasa et al. (2002). The positive effect of customization on customer satisfaction was confirmed in this study.

The next hypothesis was the relation between quality of information and the level of customer satisfaction. The results proved that in line with previous studies (balasubramanian and Sridar, 1997) Malaysian users of online banking are sensitive toward the quality of information as well as elsewhere. To measure the information quality the instrument supports questions base on Xiaohong (2009) which divided information quality into four dimensions including accuracy, integrality, relevant, and update timely. The respondents in Malaysia show their interest to have high quality information.

The final items which was examined in this study, was security. In order to write about the importance of the security in online banking suffice it to say that it is most considerable worries of online users during the years of the Internet robust (Thomas, 2002). Base on the finding there is a positive significant relation between the security and customer satisfaction.

Therefore all hypotheses in the first part of model were confirmed and their positive influences on satisfaction were proved.

Second part of study explored the relationship between customer satisfaction and the loyalty while trust had a mediate role in this relationship. Base on the finding and the analysis part, customer satisfaction can affect customer loyalty. Not only is this a positive relationship, but also it is a significant one. This finding is in line with Shankar et al. (2003) findings. Overall satisfaction leads to enhance customer loyalty in the online environment such as Internet banking services; furthermore, this finding supports Bolton (1998) and Rust and Zahorik (1993) which proved that effect of customer satisfaction on the customer retention (behavioral retention) is completely noticeable. Base on Shankar et al. (2003) it emerges that pleased customers are better able to convey their loyalty in online Internet banking environment.

So as to test the last hypothesis (H5) the relation between customer satisfaction and trust was test by a multiple regression and the results did not confirm the association between customer satisfaction and trust. The result from exploring the second part of relation between trust and customer loyalty proved that there is a positive significant relation between trust as an independent variable and customer loyalty as a dependent variable. This explanation clears that the trust has no mediate role in this relationship in the model for this study; therefore, the hypothesis H5 was rejected. There is a surprising finding where this results are in line with the Ribbink (2004) findings partially. In spite of the fact that the direct positive effect of trust on loyalty is a common result for both studies, the mediating role of trust which was confirmed in Ribbink (2004) study, is rejected in present study in Malaysia.

Next section will go through the both behavioral and environmental factors which can cause these results.

5.3 Discussions:

In order to discuss about the results of this study, by referring to the analysis part in chapter 4, the existing of positive significant relationship between website design, customization, information quality, and security were confirmed. Proving the relationship between variables in the first part of model in Malaysia can be considered from different aspects.

Strong positive effect of all these factors can be explained by looking at the today's customer perception toward online services such as Internet banking. Among these factors, information quality has the strongest effect on the customer satisfaction level. It is unsurprising that customers in Malaysia were sensitive about quality of information as well as elsewhere. More accuracy, integrity, relevancy, and timeliness in offering information in websites can be an assurance to attract customers and keep them as loyal customers. It is obvious people always need correct information in order to make decision; besides, truthfulness of information is another important factors to make decisions. More relevance information as well as upgrade ones is critical factors for customers to make a decision. In these days, ubiquitous characteristics of the Internet make it available everywhere, accessing to the latest accurate information is easier than ever. Base on Huang (2007) users will shift to another website in less than 10 seconds; therefore, it is extremely important support them with high quality of information and data in order to keep them. Consequently Malaysian online banking users have express same behavior towards information quality dimension as well as other countries.

Remain constructs; customization, site design, and security approximately have the same influence on the customer satisfaction. Malaysian respondents gave same point to these three constructs and ranked them in same place. Although the literature part of this study emphasized on the importance of security (Chellappa, 2002), the Malaysian respondent expressed same behaviors and did not give more credit to security. So as to explain this behavior it so considerable that users of Internet banking trusted on the infrastructure of the Interment in Malaysia. They believed this infrastructure as reliable and trustworthy ones. Since 2000 that first online banking services were offered by Malaysian bank (MayBank), developing in the infrastructure is remarkable and noticeable. During the years different banks offer various facilities and services thorough their online website, by this way they could attract users and by offering the safe a secure online services made them clarify toward online banking. Nowadays people are more rely to the online services than ever. In spite of the fact that respondents of this study ranked security as well as other variables, security influences the customer satisfaction in a positive significant way.

Website design and customization are two important factors base on the respondents point of views. While customization was a strong significant dimension in Cheung (2001) study, it was not significant one in Zhu et al. (2002) work. Internet banking users around the world have different and dissimilar behaviors towards these two dimensions. Base on results of this paper, the strong effect of customization and website design on customer satisfaction level is are less than trust and information quality.

As a final discussion, In Malaysia as well as elsewhere, trust, customization, website design, and information quality are factors that can influence users' satisfaction level. The model of this study examined these four dimensions in Malaysia and proved the significant positive relationships of them with customers' satisfaction level.

The evidences and results of this study line up with prior studies. Although previous researches do not cover the Malaysian case well done, evidence shows that Malaysian users are in same perceptions with elsewhere. Globalization and existing of the Internet make people more intimately than before. Companies' strategy to outsourcing and offshoring in order to decrease the cost, leads to more interaction between people from different cultures. These kinds of relations can cause to affect by other perceptions, that's why people in Malaysia have close perception in Internet banking with rest of the world.

In the second part of study the mediating role of trust between customer satisfaction and loyalty is rejected.

Trust influences the loyalty in a direct positive way. This part of relationship can refer to Malaysian behavioral reflection. Gundlach and Murphy (1993) trust was accepted as the vital factor in any interaction of human. Doing transaction in online environment can be considered as online exchange, base on many researchers beliefs (Ribbink, 2004; Tan, 2000) trust plays vital role in doing online transaction. The more banks website offer trustable information and data and behave in a convictional way, the more they can enjoy the loyal customers who will be sources of mouth of word (Sweeney and Swait, 2008). Malaysian respondents show same behaviors toward the trust and loyalty as well as elsewhere. In a cultural point of view, base on Hofstede (1989) cultural dimensions, countries such as Malaysia with high score in their uncertainty avoidance index will behave very doubtful towards a new technology or a un touchable technology such as the Internet banking where the is no need to face to face interaction. This definition of Malaysian culture leads to create high sensitive people toward factors such as trust. In a culture with this kind of dimensions score, trust can play an important role individually and can lead to success or failure of a business. The evidence from this study clarified the importance of trust in Malaysian users of Internet banking.

The evidence did not support the relation between customer satisfaction and trust; consequently it offered no evidences for supporting mediating role of trust in this study. So as to discussed about this result, this point is acceptable that base on the priors studies which explored the effective factors in customers satisfaction, trust was a factors which most researchers found its influence on the satisfaction level (Gilbert et al., 2004). It can be concluded that trust is an effective factor to measure the level of satisfaction and the relation between this item and satisfaction was proved in priors' studies. In spite of the fact that trust is important item to measure the satisfaction level (Gilbert et al., 2004), the customer satisfaction cannot influence the trust of people towards an online website and specifically in this study online banking.

This section will ending by mention to this point that the unique findings and evidences of this study must be used in case of Malaysia users of Internet banking.

Next part of this study will explain the usefulness of these findings in point view of managers in real world and market places.


The purpose of this study is recommending suggestions base on the respondent's perceptions toward online banking in order to craft Internet banking more reliable and acceptable in Malaysia. By looking at the evidences of this study, respondents show positive reaction toward website design, customization, information quality, and security which will be asked in the questionnaire; therefore, these factors are vital to stable a successful website and attract more customers. This research finds important donation to the awareness regarding to the customers' perception of the difficulties in online banking and customers' needs. Additionally, it makes available path into the customers' requires and desires which may be imperative for banks managers to supply superior services for their online banking users.

Banks dictate extra media advertise about the security level, laws and regulations related to security. The lack of information or low-scale of adequate information for customers can lead to inflate psychological anxiety and suffering in their mind.

Banks managers who run online websites can be able to overcome this gap by sponsoring suitable tutoring and advertising throughout the mass media supplies. Respondents presume that the financial institutes can offer great certification to them by issuing Internet banking information and the data on security violates to community. It is an acceptable and excellent idea for financial institutions to establish certain types of techniques to authorize the Internet banking transactions in ways that make available dual checking and verification. This is crucial to enhance the users' moral motivation and destroy or diminish their fright and suffering in online banking services. The aims can be achieved by including standard and repeated seminars and fairs to allow the customers to evaluate the banks new innovations, Internet banking methods and electronic resources to donation these services.

By looking at the customization, giving more conveniences to customers in order to do their tasks can be a good opinion for banks websites' managers. By customizing their preferred task customer can be able to attain their deal as soon as they reach the banks' home pages.

To obtain superior response in the Internet banking facilities and services, this study support that the banks' managers may focus on advertising purposes to aware their online users. Providing rewarded packages to their customers or presenting specific services with sensible discount to loyal user can lead to increase in satisfaction level.

According to the evidences design of websites is another effective item on customer satisfaction level in Malaysia. Not only is it necessary to have high quality website, but also it is important to have ease of use and friendly one. Implication of this study in website design can guide bankers to design their website base on customer perception of an online banking website in Malaysia.

In case of Malaysia with different ethnic groups who speak and write with different languages, it can be a good idea put language box for those who have not been familiar neither with English nor with other groups' languages.

It is powerfully suggested that banks must assign a specific budget to provide researches in technologies categories. These funding in research missions is considered as an excellent method to determine new technologies and skills associated to the Internet banking. These new technologies can be related to all customers' needs dimensions. Especially it can be cover the security issue. Nowadays, the more software designers create program for computer protection, the more hacker develops their abilities. What is that called security doubt can be solve by implementing new protective software on banks websites.

Another issue can be the users' perception of trust in online banking. Banks which have the online websites should attempt to gain their customers by giving the assurance to their customers about the trust and security of their online banking services. Financial associations are invented to defend their clients by incorporating practical high-tech tools and motivational communications that reproduce complete security to keep their personal and private information.

In this research, in spite of the fact that trust shows no crucial role between customer satisfaction and the loyalty relationship, the positive significant influence of trust on loyalty was verified. It can be explained from a managerial point of view that trust is very complicated to affect or manage in a straight line. Trust can be stimulated by supporting a secure, safe, and reliable website. Banks managers must consider to this point in order to increase their website assurance dimensions and raising their reputation.

Base on the Zahorik and Rust (1992) suggestions, the lack of empirical research in customer satisfaction and loyalty is obvious. In order to measure customer satisfaction and customer loyalty specific action by the firms must be consider such as investment in developing services.

Nowadays globalization plays an important role in all activities around the world. Malaysian government decision to open Malaysia market to foreign companies; financial institutions such as banks are kinds of these companies. In case of foreign banks which have active branches in Malaysia, it is necessary for them to know about the Malaysian culture and cultural mixture. Discovering Malaysian ethnic groups' beliefs and customs is a vital act that must be done at the beginning of the running business in Malaysia. These beliefs guide these people in their daily works; besides, they can affect their perception about new product and services. Being familiar with Malaysian perceptions can be a guideline for foreign banks to address these customers' needs. Facilities and services can be offered base on local people perception. This can cause to create more satisfaction between local users. Moreover, offering languages options will be a most powerful tool to attract people to use online banking.

Further research:

Exploring the customer satisfaction and loyalty in different regions in Malaysia is a necessary and important idea that must be consider by managers and researchers. This study has selected its respondent from local universities students. Another research can cover this issue in a larger population in Malaysia by selecting respondents from different parts and regions. The importance of these kinds of studies for banks which open their branches in different areas in Malaysia are completely clarify to discover people perception towards their facilities and services. By expanding Internet facilities around Malaysia, it is necessary to discover users' perception towards online banking in different regions and parts in Malaysia.

Furthermore, base on Malaysian three different ethnic groups, it will be a superior idea to add the demographic part items, ethnic groups, to data analysis. It would be a superior work to discover ethnicity diversification effect on customers' satisfaction level in Online banking in Malaysia. This can lead to find differentiation in cultural aspects which can affect people perception to use Internet banking; furthermore, income level and educational degree can be examined to find their effect on the customer satisfaction level and loyalty.

Technology is an important dimension which can enter to framework to examine its effect on both customers' satisfaction level and loyalty level. Looking at the existing different aspects of technologies in Malaysia; besides, new technologies that designers of the banks websites use in their designs can be a prior study to find the effect of these high-techs in the customers' satisfaction. Internet infrastructure in Malaysia and new technologies in this field can be an interesting topic to do a new study.

Nevertheless, there are a lot of different researches in customer satisfaction level in different countries; there are not sufficient studies which have been done in Malaysia.


Furthermore, additional research can look at existing framework for specific banks which offer online banking facilities in Malaysia. It can be leverage for managers to approximate their achievement or breakdown. Going through the specific banks in Malaysia such CIMB, Maybanks, and finding critical factors for these banks can be empirical research which will be important not only for Malaysian research field, but also for managers and website designer of these banks.

In case of foreign banks which are working in Malaysia in order to discover the success or failure of them, a new study can cover the local customers' satisfaction and loyalty level towards these foreign banks. Banks such as Citibank, HSBC are banks that not only are they popular, but also they have online facilities and services for local customers.

Hope it will help managers in Malaysia bank industry to offer services base on customer real needs and perceptions; moreover, open a window for Malaysian researchers to work on customer satisfaction in online banking in Malaysia.

In term of loyalty very few studies have worked on this issue and the factors related to loyalty in Malaysia. Discovering the hidden aspects of loyalty in Malaysian users' point of views is a very vital and important for both local and international financial institutions. This kind of research is crucial because of the importance of making customers retention for companies. Investigating customers' retention periodically can be a good idea for companies to estimate their activities towards their customers. These kinds of research provide useful information for companies for their estimation.

This research investigated the trust as a mediating factor in Malaysia, another study can use trust as a moderating factors in customer satisfaction and loyalty relation; besides, and the trust can be entered to the first part of model as an effective factor on customer satisfaction level. In order to write about the importance of loyalty in companies' future activities suffice it to say that loyalty is a vital factor that can provide companies with more revenue and profits; besides, loyal users of Internet banking can be sources of positive influence on non-user of Internet banking.

It is noticeable that present study is the first study in Malaysia which explored both customer satisfaction and loyalty in Malaysia; further researches can follow the model and findings of this study for doing in the specific banks in Malaysia.