Strategic and operational issues in internet banking

• Main Authors: Shaari, Rohaya, Muhamad Alib, Hafizi
• Format: Conference or Workshop Item
• Language: English
• Published: 2005
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/14667/1/7p2.pdf; http://repo.uum.edu.my/14667/; http://www.icoec.my/index.php/proceedings/8-icoec-2005-proceedings?limit=50&start=50

The electronic revolution in Malaysian banking sector is now more noticeable as banks are trying to keep abreast with information, communication and technology (ICT).Internet banking is regarded as a new delivery channel that offers 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 perceived the strategic and operational issues of Internet banking? Thus, this paper seek examines the perceptions of bank managers on Internet banking with respect to strategic and operational issues.A total of 54 responses were received from questionnaires distributed to bank managers in Northern area of Malaysia.Interestingly, we find that there is significant difference between level of education and years of services with operational issues. Further analysis in strategic issues reveals that it is mandatory to implement Internet banking for banks 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 management should continue to offer personalized services to its customers.Thus, Internet banking should be used as an informational and transactional tool to complement and to enhance banking operations