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592 Nur Fazira & Dr Adaviah (2022)

seven-month period in 2019. Meanwhile, the internet banking penetration rate to population increased to 107.4 %, up from 92.8 % in
July 2019 and 88.2 % in July 2018. (Goh,2020). Online banking saves money and provides a wide range of benefits for banks and
their clients by enhancing and increasing consumer satisfaction. On the other hand, in the highly competitive banking industry, it is a
vital instrument (Yang, 2019). Bank Islam Malaysia Berhad (BIMB) was established on July 1, 2001, and this banking service is
actively working on a digital platform. Bank Islam has declared that it will deliver internet banking capabilities to potential customers
for an electronic banking service by the end of the year. Apart from that, due to increased internet penetration, online banking at Bank
Islam Malaysia Berhad (BIMB) has grown significantly. Based on information received from Romina as general manager of the e-
channel department of BIMB, this current pandemic situation adoption online payment and banking services through BIMB increased
by more than 200%. Even though Malaysians adopt the Internet in relatively small numbers compared to other countries, Malaysian
banks should not be left behind by technological improvements. Bank Islam must fully utilize the Internet to increase efficiency and
profitability in the face of global competition.

■ 1.1 BACKGROUND OF BANK ISLAM

Bank Islam Malaysia Berhad (BIMB) is known as Malaysia’s first shariah banking institution. It has always been at the forefront of
Islamic banking development. Furthermore, it provides technical guidance for the building of numerous Islamic institutions throughout
Asia. Aside from that, in 1983, this bank formed a company to assist Malaysia's Muslim population with their financial needs.
(Bankislam.biz, 2017). They now provide approximately 70 new Islamic banking products and services in the city. Besides that, BIMB
offer their product to individual consumers such as savings, investments, and traditional financing. At the same time, wealth
management, capital markets, and microfinance are also services they offer. With over 144 branches and over 1,000 self- service
terminals nationwide, Bank Islam is currently Malaysia's largest Islamic banking network. On the other hands, BIMB has a desire to
become a global leader in the Islamic banking business, and one of its missions is to constantly develop and provide financial solutions
while providing shareholders with affordable profits and have a secure workplace. In addition, the name GO by Bank Islam was chosen
because the application is agile to complete the customer's banking business. Since its introduction in 2019, GO by Bank Islam has
received a good response with registration so far reaching 750,000 people. About 70% of them are active users. GO by Bank Islam
users are generally young people under 30 years old. They represent 60% of the total number of users who registered under this app.
This number is in line with their target segment, which is a new generation that is more skilled at technology as well as being the first
consumer of every new technology introduced in the market as he said. Despite its slightly late presence, GO by Bank Islam is very
aggressive in establishing partnerships with partners to introduce the latest facilities to be able to compete with offers from other
banks. Starting with basic features such as fund transfers and bill payments, the GO by Bank Islam facility has been improved to also
support dealings with Lembaga Tabung Haji (TH), DuitNow facilities, JomPay and the Sadaqa House public funding platform, which
allows consumers to contribute to the less fortunate through Bank Islam's appointed Implementing Partner. The uniqueness of GO by
Bank Islam is compared to offering Shariah-compliant services digitally in line with the current needs of customers. (Singapore
Business review, 2021)

■ 1.2 BACKGROUND OF THE PROBLEM

The consumers of commercial banks in Malaysia still have a lack of information about specific Islamic products. According to this
survey, Bank Islam offers its products and services, causing misunderstandings among Muslims and non-Muslims (Heinonen, K.,
2015). The first issue that BIMB had face in marketing issues which they have limitation on selling their products and offering
services to clients. This is due when most of bank branches are required to close temporarily or operate with limited counter services
and reduced operating hour regarding the requirement for social distancing measures and other standard operating procedures (SOP)
during the MCO in Malaysia. For instance, one of the conditions is they must operate from 9.30 a.m. to 3 p.m. during the MCO period.
Since people are afraid of going to banks since the Malaysian government does not encourage individuals to go outside during the
Pandemic COVID-19. Furthermore, banks also did not entertain for customers who make loan applications even though for online
submission. Thus, we can see banks had a tough time reaching out to their clients and providing products and services in pandemic
time.
The second issue that BIMB is dealing with users which they are complaining about a lack of system security and risk
management when it comes to online banking. As far as concerned, security has also been identified as one of the most important
factors that act as obstacles to internet banking. According to Haque (2019), customers will be inclined to using e-banking if they have
had problems with transaction security and poor service quality. In terms of security, consumers rated the Bank Islam Go Mobile Apps
based on biometric login availability, security levels, ease of resetting passwords and usernames, and escalation of fraud or theft via
the app. Even though, the Apps have a strong security system and biometric authentication. However, it needs to step up its protection
and educational efforts. Those without a login system or insufficient security measures to assure users' safe use of the apps were given
a low score of 1-2. (CompareHero.my,2019). Customers are only willing to set aside traditional banking and switch to online banking
if they believe the online experience is more secure and safe. Many customers still consider internet banking to be riskier than
traditional banking. (Speece, 2013)
Next, the third issues facing by BIMB about their online banking is about the poor layout and design offer to the user when
customer had experience used it. The worst thing is Bank Islam application is always get compared with other’s bank application.
By referring on CompareHero.my (2019), Go Mobile Apps get lower score of 2 due to not clear and ineffective design that turndown
the user's experience. The layout of the app should also grab the user's attention while not being too complicated. However, there are
still certain areas that might be improved, such as updating to the most recent user interface (UI) and possibly adding more colors or
images. Apps with a score of 1-2 had a layout that had not been changed or was not up to be part with the other apps in the

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