Determinants of Customer Satisfaction in the Digital Banking Industry in Malaysia
Purpose: The rapid advancement of digital technologies has transformed the banking industry across the globe, positioning online banking as a mainstream distribution channel. In Malaysia, the number of internet users has grown substantially; however, the acceptance rate of digital banking remains re...
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| Main Authors: | , , |
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| Format: | journal::journal article |
| Language: | en_US |
| Published: |
Universal Publishers - Boca Raton, Florida, USA
2026
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| Subjects: | |
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| Summary: | Purpose: The rapid advancement of digital technologies has transformed the banking industry across the globe, positioning online banking as a mainstream distribution channel. In Malaysia, the number of internet users has grown substantially; however, the acceptance rate of digital banking remains relatively modest compared to other Asian economies. This disparity raises important questions about the underlying factors influencing consumer satisfaction in Malaysia’s digital banking sector. The central aim of this study is to explore how key determinants, including Perceived Usefulness, Perceived Security Risk, Responsiveness and Communication, Feature Availability, and Customer Satisfaction, shape users’ experiences and perceptions of digital banking services. Design/methodology/approach: The study employs a quantitative approach to assess the strength of these relationships. Primary data were collected through the distribution of 300 structured questionnaires containing 28 items targeting Malaysian digital banking customers, while statistical analyses such as Pearson’s correlation, Analysis of Variance (ANOVA), and Multiple Linear Regression were performed using SPSS to test the proposed hypotheses. Findings: The findings suggest that consumers’ satisfaction with online banking is influenced by both utilitarian and security-oriented factors, highlighting the dual necessity of functional efficiency and trust in shaping adoption. Responsiveness and effective communication further enhance satisfaction, whereas gaps in feature availability reveal limitations in service quality. Research limitations/implications: By offering a nuanced understanding of these dynamics, this study contributes to the literature on consumer behavior and digital banking adoption in emerging economies. Practical implications: Providing practical implications for policymakers and industry stakeholders. Banks can leverage these insights to design strategies that prioritize usefulness, mitigate perceived risks, and improve communication to elevate overall satisfaction levels among digital banking users in Malaysia. Originality/value: The framework is contained in novel combination of antecedents that focused on digital banking user’s perceptions. |
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