impact of technology in service industry

Topics: Bank, Online banking, Credit union Pages: 5 (1840 words) Published: October 8, 2013
Evaluate the impact of technology in increasing Malaysia’s quality of the service industry. 1.0Introduction
Nowadays, with the continuous growth of competition in the market place, understanding customer satisfaction has become very important in service industry (Chun Wang, 2006). The role of technology in service industry has helped a lot of organizations to reduce unnecessary expenses and uncertainties. It has been used to standardize services by reducing the customer interface (Quinn, 1996). On the other hand, most of consumers nowadays are also prefer to choose a technology-based service delivery and it has also rising some significant concern about the impact that technology on service quality and how it affects customer satisfaction levels.

The growth technology has proved remarkable growth in service sector especially in Malaysia banking industry. It has proved that technology has a massive result in banking sector by providing more flexible payment system and more user-friendly banking services to their customers. These banks have understood the impact on technology and they are willing to invest more in new technology in order to help them to enhance the company effectiveness and efficiency.

Through such improvement and advancement, most of the banks have started to serve their customers better and faster. Technology has also increase cost efficiency of banks by providing chances to cut down labor by replace computer technology. This can be seen from the invention of ATM machine and online banking which is clearly replace human manpower as people do not need to wait and queue and they can get some services faster and easier through the advancement of technology. From all above point, we can see some of the importance of technology and how it impact customer satisfaction in banking industry.

2.0 Technological Advancement Change Banking Industry in Malaysia
There are a lot of examples that show how technological advancement has changes Malaysia banking industry. First, is through internet banking. Internet banking is also named as online banking, which is one of the banking services, for example paying of bills, funds transfer and viewing account statement through a computer system or similar devices that can connect to the banking site via the internet. Internet banking can be classified by two categories which is transactional and non transactional activities. The examples of transactional activities are included electronic funds transfer, bill payment and wire transfer, loan application and repayments and also buying investment product. On the other hand, non transactional activities are included account balance viewing, viewing of previous bank transactions, bank statement downloading, check book ordering, E banking application downloading and also the provision of account or bank statement.

According to statistic from Bank Negara Malaysia, the number of internet banking and mobile internet subscriber in Malaysia has increased since year 1995. Table 1 : Internet Banking and Mobile Banking Subscriber in Malaysia

Source: Bank Negara Malaysia, 2013
One of the reasons that Malaysian like to use online banking because it is very convenient. By using the online banking system, we are able to do the business transaction anywhere as long as we have a device which can connect to the internet. All of the banks that provide this service allow their customer to do the transaction 24 hours a day and 365 days round the year anywhere and anytime as long as internet connected. Users do not need to worry about the bank working hours as everything can be done in one click, no need to travel to bank and waiting to be helped in order to get banking done.

Maybank is the first bank in Malaysia that recommend Internet Banking services in Maybank2u.com and captures around 54% of the online banking market share in Malaysia (Sin Chew Daily, 2010). It was once become the leader among other banks and...

Bibliography: Johnson S., (2013) The Disadvantage of Internet Banking, [online]. Available from: http://www.ehow.com/list_6556260_disadvantages-electronic-banking.html [Accessed, 2nd October 2013]
MEPS (2013) Corporate Profile, [online]
Wong CK., (2013) The State of Mobile Commerce in Malaysia, [online]. Available from: http://www.ecommercemilo.com/2013/06/the-state-of-mcommerce-malaysia-part2.html#.Uk5cM9JJOBm [Accessed, 2nd October 2013]
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