: BANK MANAGERS: HOW DO THEY PERCEIVE INTERNET BANKING?

Abstract

The rapid pace of technological changes foster economic development and financial transformation creates new demands as well as opportunities for banking business. The Malaysian banking system, just like any other system in the world has to embrace itself with this new banking. As a result of globalization, Malaysia banking institutions face mounting pressure to become more efficient and competitive, innovative, technology-driven and strategically focused. Internet banking has widely used by Malaysian banks as a strategy to achieve this objective. While it benefits bank customers, what do bank managers perceive Internet banking? This paper examines the perception of managers on Internet banking with respect to strategic, operational, customer-related and technological issues. Interestingly, we find bank 'managers provide conflicting views. While it enhances customer service, Internet banking is perceived to reduce human resource and banker-customer relationship. Hence, this finding suggests that bank management should continue to offer personalized services to its customers. Internet banking should be informational and transactional tools to complement and to enhance banking operations.