Demographic Influences on Internet Banking in Malaysia

Internet banking is regarded as a new delivery channel, which if effectively used, can provide competitive advantage in the banking sector. While it promises enormous benefits both to consumers and banks, the question is how bank managers perceive the strategic and operational issues of Internet banking. Therefore, this paper seeks to examine the perceptions of bank managers on Internet banking with respect to strategic and operational issues. This study is based on the responses of 54 bank managers of Northern area of Malaysia. Interestingly, as regards operational issues, this study finds that there is a significant difference between the level of education and years of service. Further, analysis of strategic issues reveals that it is mandatory for banks to implement Internet banking to compete effectively in the future. In operational issues, bankers perceived that Internet banking would help improve their customer service. Hence, this finding suggests that bank managements should continue to offer personalized services to the customers. Thus, the study suggests that Internet banking should be used as an informational and transactional tool to complement and enhance banking operations.