Chapter 1: Introduction
Nowadays, Malaysia is a multi sector economy and technology development based on the presence of many technological inventions. Traditional banking act as physical bank and delivery channel which to give customers to place or get their money out of the bank safety deposit boxes, managing checking or current accounts, paying cheques drawn by customers. However, e-banking is one of the technological inventions that give conveniences to customers to manage financial transactions on a secure website performed by retail or virtual bank, credit union or building society. E-banking is also called electronic banking which is the automated delivery of new banking services and products directly to customers through electronic, interactive communication channels. It brings many benefits and capabilities to customer compared to traditional banking. E-banking is fast and convenient way of using computer to easy access to the bank in 24hours. E-banking utilizes the internet system as the delivery channel by which to accomplish banking activity, for example, paying bills, transferring funds, viewing checking and savings account balances, paying mortgages and purchasing financial instruments and certificates of deposits (Haque et al, 2009). Internet banking enable customers to access their general information and accounts of bank products and services through PC or other intelligent device using web browser software on 24 hours a day and 7days a week, such as Netscape Navigator or Microsoft internet explorer (Mohamad, Hanudin, Suddin, Noren, 2007). The development in information technology have had an tremendous effect in development of more flexible payment methods and more user-friendly banking services in the world of banking (Serkan, Safak, Eda, 2004). There are some features that fall into several categories of internet banking which are transactional, non-transactional, financial institution administration, support of multiple users having varying levels of authority, transaction approval process and wire transfer. In transactional, e-banking act as account and financial transactions, pay bills, wire transfer and apply for loan or new account, investment purchase or sale and others. Electronic Bill Presentment and Payment (EBPP) is an electronic billing which customer can pay bill and receives payment easily, faster, and conveniently over anywhere and any times. Customer perception is interpretation of sensory mind and experienced by customer. The convenience of e-banking are attracted customers and provided no cost charged to customers. Customers have started accepting this internet service and assessing the banks based on their easy to access and convenience. With great confidence toward e-banking, customers are willing uses the internet banking to transfer fund, pay bills, and lot more with a excellent-secured system. It also can establish the relationship between trust and loyalty of customer toward e-banking. Internet banking in USA and Europe
The dramatic growth in internet usage has generated a segment of customers with the ability and desire to conduct banking transactions completely online (Mathew and George, 2003). The internet explosion in the late-1990s brings people more convenience with various applications over the web. In the mid-1990s, customers using internet as monetary business transaction over the web as the financial institutions had implemented e-banking. The majority of US-based banks are escalating their investment in technology and hedging their bets while research specifies that a substantial portion of the customer base may always demand the type of personal interaction that can only be provided by individual branch personnel (Alstad, 2002). TowerGroup's prediction is highlighted by CRMToday on IT spending by large banks in USA, which the amounts is 24.1 billion in 2004 as compare to 22 billion in 2002. Besides that, many US banks, such...