Page 615 - MARSIUM'21 COMP OF PAPER

594 Nur Fazira & Dr Adaviah (2022)

has its own set of features. For example, online banking allows users to do a wide range of banking transactions at any time and
at a cheap cost (Amin, 2016). On the other hand, the internet allows consumers to choose better and more alternatives, which
indicates that users will be less loyal to certain financial institutions, resulting in strong competition and challenges (Zhang, 2016).
Therefore, managing and strengthening client relationships is more important to bank and other financial institutions than creating
long-term customer relationships. This finding was also supported by Chiu, (2017) in his study, which found that the internet
provides a quick delivery channel through which client banking services may be given more conveniently and affordably. Many
people claim that e-banking has improved greatly since the cost of processing transactions has been substantially decreased,
payment efficiency has increased, financial services have improved, and banker-customer relationships have improved (AlKailani,
2016).

2.2 CUSTOMER SATISFACTION

Customer satisfaction is crucial to the success of the service industry (Rew, 2020). According to Tseng (2019), customer satisfaction
is a key element of a company's performance, and it is also necessary to identify these contributing elements. Therefore, customer
management is important in satisfying the different needs of both customers and businesses (Yi and Nataraajan, 2018). Furthermore,
one of the most crucial strategic factors of every business is customer satisfaction. This is because any business's main source of
revenue is its consumers (Rehman and Khattak, 2010). Based on the perspective of modern marketing, the ability to meet consumer
wants and satisfaction is essential to a company's sustainability. In addition, to achieve their objectives, financial institutions are
aiming to improve customer satisfaction by boosting the performance of services and products (Ahmed and Rehaman, 2010). As
stated by Kotler and Keller, (2013), customer satisfaction is a person's emotion of happiness or disappointment when comparing the
perceived performance or result of a product to their expectations. To add on, customer satisfaction is related to the performance of
the services given (Asnawiet, 2019). If a customer's impression of a product's or service's performance is higher than predicted, it
will result in a positive consequence, which can lead to a strong and long-term relationship. On the other hand, perceptions of poor
performance can lead to negative denials, which can lead to failed relationships and negative recommendations to others. Mihlis
(2011) pointed out that bank customer satisfaction is mostly determined by the convenience and behavior of bank workers, as well
as the types of products and services offered.

2.3 THEORETICAL FRAMEWORK & HYPOTHESIS DEVELOPMENT

2.3.1 E-SERVICE QUALITY

The discrepancy between the customer's expectations of the service and their impression of the service's delivery is described as
e-service quality. E-SERVQUAL is an electronic service quality measuring method or model that measures the gap between
customer expectations and experience. Tjiptono and Chandra (2019) identified numerous gaps in the idea of e-service quality
that need to be investigated and addressed, including the design gap, information gap, fulfilment gap, and information gap. The
term of information gap refers to the gap between consumer needs and business management's ability to address those wants. If
the firm or service provider is unable to deliver and apply all knowledge regarding the features that customers expect in the intended
website function, a design gap will develop. The staff's communication skills in handling information, comprehending products,
and providing answers to consumer concerns are examples of the communication gap. The fulfilment gap indicates the overall gap
between customer requirements and consumer experiences.

2.3.1.1 RELATIONSHIP BETWEEN PRIVACY & SECURITY AND CUSTOMER SATISFACTION
Security may be defined as a sort of protection that ensures the safety of customers and prevents hackers from violating
their privacy (Dixit and Datta, 2010). In the meantime, customers' privacy is a major concern, as they strive to secure
their personal and financial information when conducting financial transactions through online banking (Goh, 2016). Other
than that, Jalil, Talukder, and Rahman (2014) also pointed out that the security of online banking systems is always the
greatest concern for customers. Customers in the banking sector may be disappointed if the security provided for online
fund transfers is poor. Most online banking customers report that secure financial transactions are crucial to them since
their main consideration is the protection of their money in the banks (Ndubisi, Sinti, and Fatima, 2011). Furthermore,
Ahmad and Al-Zu'bi (2011) showed that security and privacy had a beneficial impact on consumer satisfaction. Users'
involvement in online money and personal information transfers is strongly influenced by their level of trust. It is often
said that customers can build a long-term relationship with their bank if they trust the firm's privacy protection. According
to Hernandez and Mazzon (2017), many bank customers, particularly those who use online banking services, are concerned
about privacy and security to improve customer satisfaction. Customers would be less likely to apply for and use online
banking if there was a lack of privacy and security (Chen and Barnes, 2017). To back up this claim, data shows that privacy
and security are vital aspects in guaranteeing customers' satisfaction with online banking. As a result, it is generally said
that privacy and security (PRISE) have a positive influence on customer satisfaction in online banking systems.

H1: Privacy & Security has positively significant relationship with customer satisfaction towards online banking.

594