An Analytical Study of the Satisfaction of Generation Y Towards Internet Banking Services in Klang Valley, Malaysia

by Char Shoo Guan


The advent of information technology (IT) has tremendously influenced the world of commerce, including financial services. From business to customer (B2C) perspective, customer services through internet banking have always been the main objective for them. Sometimes, issues and conflicts might occur between an organization and customer in terms of their need and want through online services. Perhaps, B2C organization might not be aware of the need of Generation Y’s customers. Researches have proven that Generation Y represents the largest demographic segment of internet usage customers. Likewise, they emerge as a highly lucrative segment towards the business for banking industry. This is because, Generation Y members have substantial discretionary buying power relative to their incomes as well as they are more likely to have the buying power through online. Therefore, many banks are targeting Generation Y customers at an early stage and try to retain them over time. Many studies have been carried out as regards this segment of customers in term of consumer behavior, culture and quality of services. Nonetheless, there are still some ideas that remain undiscovered. 

This study was tested on a sample of 244 respondents and data was collected in Kiang Valley, Malaysia. Descriptive statistics found out that, respondents in general have used internet banking services for their financial needs. The findings of the study have also revealed that gender, education background, occupation and frequency usage have no significant difference as regards theoretical framework and customer satisfaction. Main dependent variable bearing influence upon generation Y’s usage of internet banking services is perceived usefulness. 

Findings of the study provide banking industry with a better understanding on Generation Y customers’ satisfaction and customers’ loyalty in a long run by improving the quality of service in terms of Ease of Use, Reliability, Communication, Legal Support Issue and Perceived Usefulness. 

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