The Impact of Digital Banking Services on Customer Satisfaction: Evidence from Malaysia
DOI:
https://doi.org/10.24191/jas.v23i2.10745Keywords:
Digital banking; Customer satisfaction; Ease of use; Brand trust; Malaysia; TAM; Banking innovationAbstract
This study examined the impact of digital banking services on customer satisfaction within the Malaysian banking sector. As digital platforms become increasingly integral to financial service delivery, understanding the factors that influence customer satisfaction is essential for banks seeking to enhance customer experience and maintain competitiveness. Drawing upon the Technology Acceptance Model (TAM), the study investigated five key determinants of customer satisfaction: perceived ease of use, perceived usefulness, perceived risk, brand trust, and digital banking trends. A quantitative research approach was adopted, with data collected from 299 digital banking users in the Klang Valley through a structured bilingual questionnaire. Statistical analyses, including reliability, correlation, and multiple regression analyses, revealed that perceived ease of use, brand trust, and digital banking trends significantly influence customer satisfaction. In contrast, perceived usefulness and perceived risk were not found to have a significant effect. Among the variables examined, perceived ease of use emerged as the most influential determinant of customer satisfaction. The findings provide valuable insights for banking institutions and policymakers seeking to strengthen digital banking services and enhance customer engagement. By identifying the factors that most strongly influence customer satisfaction, the study contributes to a deeper understanding of customer behaviour in digital banking and supports the development of more customer-centric digital strategies within Malaysia’s evolving financial landscape.
References
Alalwan, A. A., Dwivedi, Y. K., Rana, N. P., & Williams, M. D. (2018). Examining factors influencing customer intention and adoption of internet banking in Jordan. Information Systems Frontiers, 20(3), 559–578. https://doi.org/10.1007/s10796-017-9778-y
Ali, O., Alam, K., & Rizvi, S. A. R. (2020). The role of perceived ease of use and usefulness in influencing digital banking adoption: Evidence from Malaysia. Journal of Banking and Finance, 116, 105–117.
Amin, M. (2016). Internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty. International Journal of Bank Marketing, 34(3), 280–306. https://doi.org/10.1108/IJBM-10-2014-0139
Angusamy, R., Manogaran, G., & Sundaram, D. (2021). Perceived usefulness and user trust in mobile banking: Evidence from Malaysia. Asia-Pacific Journal of Innovation in Hospitality and Tourism, 10(1), 1–12.
Aripin, M. H., Johari, R. J., & Ismail, N. (2024). Understanding digital banking satisfaction among Malaysians. Asian Journal of Banking Studies, 6(1), 33–45.
Bank Negara Malaysia. (2023). Financial Stability Review – Second Half 2023. https://www.bnm.gov.my
Broby, D. (2021). Digital finance: Security, trust and banking in the fintech age. The Journal of Financial Transformation, 53, 22–29.
Butt, M. M., Imran, A., & Ahmad, M. (2021). Digital transformation in the banking sector: Drivers and outcomes. Technological Forecasting and Social Change, 163, 120420. https://doi.org/10.1016/j.techfore.2020.120420
Carbó-Valverde, S., Cuadros-Solas, M., & Rodríguez-Fernández, F. (2020). Adoption of financial digitalization: The role of perceived ease of use and trust. Financial Innovation, 6(1), 1–18.
Chauhan, S., Yadav, R., & Gupta, M. (2019). Technology acceptance model with perceived risk and trust in digital banking: A case from India. Journal of Financial Services Marketing, 24(1), 1–14.
Choong, Y. V., Ho, S. C., & Loh, C. Y. (2020). Digital service quality, satisfaction and loyalty in Malaysian banking: A moderating role of customer experience. Asian Journal of Business Research, 10(1), 78–89.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008
Delgado-Ballester, E., Munuera-Alemán, J. L., & Yagüe-Guillén, M. J. (2003). Development and validation of a brand trust scale. International Journal of Market Research, 45(1), 35–53. https://doi.org/10.1177/147078530304500103
Dootson, P., Beatson, A., & Drennan, J. (2016). Financial institutions using social media – Do consumers perceive value? International Journal of Bank Marketing, 34(1), 9–36.
Fintech News Malaysia. (2024). Malaysia Fintech Report 2024: Key statistics and trends. https://fintechnews.my
Ghani, N. A., Ramli, R., & Hamid, N. A. (2022). Exploring perceived risks and trust in digital banking adoption in Malaysia. Malaysian Journal of Consumer Behavior, 5(1), 23–39.
Hadid, W. A., Lim, W. L., & Leong, K. (2020). Customer experience in digital banking: Gaps between innovation and satisfaction. Journal of Asian Finance, Economics and Business, 7(11), 45–53.
Hen Lin, N. A., & Tan, Y. L. (2024). Key determinants of satisfaction in post-COVID digital banking services. International Journal of Business and Society, 25(2), 110–124.
Hussain, M., & Aziz, N. A. (2021). Understanding the role of usability and brand trust in mobile banking satisfaction. Journal of Internet Banking and Commerce, 26(1), 1–14.
Jahan, S., Bakar, H. A., & Ahmad, N. H. (2024). Investigating user perception of cardless ATM services in Malaysia. Asian Journal of Business and Management, 12(1), 66–78.
Jahan, S., Omar, N. A., & Bakar, H. A. (2022). Perceived usefulness and inclusion in digital banking adoption among the underserved. International Journal of Inclusive Digital Finance, 4(2), 51–65.
Kaur, S., Dey, S., & Rajput, N. (2021). Trust-building in mobile banking adoption: The role of brand image. International Journal of Bank Marketing, 39(2), 235–250.
KW Publications. (2023). Consumer preferences in Klang Valley digital banking: A behavioral insight study. https://kwpublications.com
Lee, M. C. (2009). Factors influencing the adoption of internet banking: An integration of TAM and TPB with perceived risk and perceived benefit. Electronic Commerce Research and Applications, 8(3), 130–141. https://doi.org/10.1016/j.elerap.2008.11.006
Lim, B. L., Teoh, T. T., & Lee, W. S. (2023). Customer satisfaction in mobile banking: What matters most in Malaysia? Malaysian Journal of Business and Technology, 8(1), 25–38.
Makanyeza, C., & Mutambayashata, S. (2018). Determinants of mobile banking adoption in Zimbabwe: An extended TAM approach. International Journal of Bank Marketing, 36(7), 1212–1233. https://doi.org/10.1108/IJBM-11-2017-0249
Mbama, C. I., & Ezepue, P. O. (2018). Digital banking, customer experience and bank financial performance: UK evidence. International Journal of Bank Marketing, 36(2), 230–255. https://doi.org/10.1108/IJBM-11-2016-0181
Mohamad, M., Nasir, N., & Wahid, H. (2023). Drivers of satisfaction in mobile banking: Trust, risk, and usefulness. Journal of Emerging Financial Technologies, 3(1), 15–30.
Mohsin, M., Yahya, S., & Zakaria, R. (2022). Regulating the digital banking landscape in Malaysia: Consumer protection and data security. Asian Journal of Regulation and Compliance, 2(3), 45–60.
Mundoego, J., & Gide, E. (2018). Revisiting TAM in the age of digital transformation. Journal of Technology Research, 11, 88–103.
Okour, M., Yusoff, R., & Osman, M. H. (2023). Customer perception of mobile banking service quality and satisfaction in Malaysia. Journal of Banking and Customer Insights, 4(1), 1–14.
Omar Ali, N. M., Salleh, N. H. M., & Wan Ibrahim, W. A. (2020). Digital banking adoption and customer satisfaction in Malaysia. Journal of Technology and Operations Management, 15(1), 45–60.
Pakurár, M., Haddad, H., Nagy, J., Popp, J., & Oláh, J. (2019). The service quality dimensions that affect customer satisfaction in the digital banking industry. Sustainability, 11(4), 1113. https://doi.org/10.3390/su11041113
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.
Razak, M. F., Yusof, M., & Tan, C. Y. (2024). Digital transformation and satisfaction in Malaysian banking: The moderating role of innovation. Journal of Southeast Asian Business, 9(2), 78–92.
Rehman, M. A., Singh, S., & Ilyas, M. (2020). Consumer trust and risk in digital financial services: A review of emerging markets. International Journal of Consumer Studies, 44(1), 22–30.
Rusydi, R., Mulyadi, Y., & Sugianto, L. (2023). Perceived risk and its impact on digital banking satisfaction in Southeast Asia. Journal of Risk Management in Finance, 11(3), 56–69.
Safi, M., Lin, Y. H., & Chen, Y. C. (2020). User satisfaction in digital banking: Measuring service quality dimensions. International Journal of Bank Marketing, 38(4), 812–830.
Sebayang, J., Hamid, M., & Fauzi, R. (2023). Financial inclusion and satisfaction in digital banking: A Malaysian perspective. Malaysian Journal of Financial Inclusion, 3(1), 23–38.
Shin, D. H. (2021). A comparative study of the factors influencing digital banking satisfaction: Cross-generational perspective. Computers in Human Behavior, 117, 106–116.
Statista Research Department. (2024). Mobile banking transactions in Malaysia 2023. https://www.statista.com
Tanjung, F. R., Yusuf, M., & Rahman, A. (2024). Reputational branding and customer satisfaction in Islamic digital banking. Journal of Islamic Banking Research, 9(2), 41–55.
Thakor, A. V. (2020). Fintech and banking: What do we know? Journal of Financial Intermediation, 41, 100833. https://doi.org/10.1016/j.jfi.2019.100833
Tiong, W. M. (2020). Exploring the digital banking experience: A Malaysian perspective. Journal of Southeast Asian Business Studies, 12(2), 56–69.
Trinh, T. T., & Ngo, L. V. (2024). Digital service innovation and customer satisfaction in Southeast Asia. Asian Journal of Marketing, 6(1), 45–59.
Wah Yap, B. W., Wong, S. F., & Khong, K. W. (2012). Trust and customer satisfaction in e-banking services: A Malaysian case. International Journal of Business and Management, 7(2), 45–62.
Wan Hanafi, N. H., Hashim, N. A., & Ahmad, S. (2023). Risk perception and mobile banking use in Malaysia. Journal of Digital Economy Research, 5(1), 34–50.
Yaseen, S. G., & El Qirem, I. A. (2018). Intention to use e-banking services in the Jordanian commercial banks. International Journal of Bank Marketing, 36(3), 557–571. https://doi.org/10.1108/IJBM-10-2016-0161
Yuen, K. F., Tan, K. C., & Wang, X. (2022). Digital banking and consumer satisfaction: The role of risk and trust. Journal of Retailing and Consumer Services, 66, 102875. https://doi.org/10.1016/j.jretconser.2021.102875
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Aina Furzanie Mat Usop, Memiyanty Abdul Rahim
This work is licensed under a Creative Commons Attribution 4.0 International License.
