Online banking payment is defined that through internet to transfer funds or money from one account to another account to develop banking activity such as paying loans or bills, shifting funds, inspecting account details and balances. Besides that, users also can pay mortgages and buying futures, warrants, options and others through online banking payments. So that, online banking payments can also be intitule internet banking payment.
In 21st century, internet has been comprehensive used by many estate of person such as businessman use it to expansion their business to advertise their products and services. In addition, students use it to consort together with their friends either in nation or oversea and mostly already replace from mobile phone. Mostly people use interest to find the information what they want to know and internet will help them to search and settle the problem they face.
In sum, online banking payment is an outcome that show the feasibility to use online adhibition. There has a confuse that difficult to conclude that online banking payment is bring more convenience to bankers or users. But this is not the important to chew the cud because the increase of using online banking payments has proved that online banking has make a lot of availability to bankers and customers during the operations.
I choose this title to become my study because online banking is already a necessary work in the future start from now and I conduct this study is to find out what and which types of factors will affect the customers to choose online banking payments. Besides, through these factors I want to know which one is the most important towards to customers to choose either online bank payments or go to actual bank make payments. I also need to find out each factors has at which level to separate them.
Here come to the primary question. Why I choose this subject area? It is not only because of this subject area is interesting but also because of this subject area is most important for me as a student who studying banking and finance. If the usage of online banking payments are increasing, that means that factors are also in the successful way and being increasingly. Bankers should try to make more factors to have the perfect match for that bank to maintain customers loyalty and satisfaction of using online banking payments. The main cooperative strategic of doing a business is to capture customers, we must first capture his or her heart. So that, we must know the need of customers and help them to achieve. Banker should develop the factors and probe them to customers the benefits of online banking payments.
Here I conduct this study by using primary data which is survey method. I distribute those questionnaires to 300 users who have use online banking payments at now or once to help me to complete this study. Inside the questionnaire, all items are evaluated by respondents on a five point likert scale such as strongly disagree, disagree, neutral, agree and strongly agree. In addition, the result will come out from using Statistical Package for the Social Sciences (SPSS).
There are four variables in factors which are trust and security, convenience and flexibility, transaction related benefits and real time information. Each variable has their meaning and has different influence on online banking payments. What method is each variable influence online banking payments? Before study this, I have to know meaning of each variable and separate among them to make this study more easily and clearly.
1.2 Research Question
What are the most factor affecting customers to choose online banking payments
1.3 Research Objective
The important of building customer to choose online banking payments to the success of benefits giving to them such as four independent variables (trust and security, convenience and flexibility, transaction related benefits and real time information). So through this study, I can to find out the relationship between all of these independent variables and online banking payments. Otherwise, I want to determine the difference in using online banking payments based on demographic variables such as gender, age, nationality, ethnicity, and education level whether the respondent is user or non-user. In reverse, how the bankers build and create more to organize online banking payments more generalization in Malaysia.
1.4 Significance of study
Researcher should expressly justify the significance of study to make the study useful and bring benefits to others. In the other words, significance of the study is the segment where the researchers impart others how they could use it and how their study would be available to clear people or segments of the society. In the market, mostly companies have the same purpose which are can make a lot of earning and benefits during operating their business. Other than expand their business, they also need to minimize their cost and maximize their opportunity.
So at here, how to maximize their opportunity? The answer should doing the research before starting any planning and after that setting a final strategies. They must know what the customers in the public markets needs. Company should try their best to help them achieve and within in a short period to give confidence to customer choose their products and services. Doing research not only increasingly business, but also can increase competitive in the market.
Based on research, management can organize a good strategic and decision. Company knows need to provide what kind of products and services to customers. For an example, bankers know what factors can affect customers to choose online banking payments. So they will improve this area of strategic to achieve customers’ anticipate such as when customer use online to pay any loan or others, they will be rebated 0.5% to encourage them continues using this service.
In sum up, research make the company is able to choose the most efficient, profitable and productive of decision.
1.5 Scope of study
Due to this study is about bank, so that I am targeting on the customers of local banks in Malaysia. In this research, I narrowed down my focus on three banks, which are CIMB, Public bank and Maybank. My specific respondents will be students from Multimedia University Melaka Campus (MMU) of any year level and course because all students can use online banking to make payments. The limitations of this research is the respondents are not outside of the campus means they must be MMU students. In other words, only those undergraduate, diploma and postgraduate students are allowed to participate in the research. This is based my study more focus and clear in this stage.
Actually I narrowed down to these three banks is because these banks have more famous and complete system on online banking payments. On top of that, universities are great environment for students to commence entrepreneurship. Thus, it is not unusual for some students to start doing their business during their studies in universities. They sell some products at their website and the customers also use online banking payments to purchase them. This method help sellers and buyers save more time and bring many convenience to them because they not need go to bank to make or check payments.
1.6 Operational Definition
1.6.1 Online Banking
Online banking or is called internet banking empower customers to transact financial institution on a very security website operated by their specific banker from their accounts.
1.6.2 Trust and Security
Trust
1.7 Organizational of Research
The research project consists of five chapters:
Chapter One covers the introduction of the topic which is “factors affecting to choose online banking payments†to provide a thorough understanding for readers. Inside chapter one includes the background of study, research question, research objective, significance of study, scope of study, operational definition and organizational of research.
Chapter Two covers the literature review which includes the defined of factors and online banking payments. Besides, I will provide the online banking payments research in Malaysia and prior research on the dimensions of each independent variable which are trust and security, convenience and flexibility, transaction related benefits and real time information.
Chapter Three will be introduced the research methodology. In this part, I will definite a short what is research methodology. And the difference between conceptual development and hypotheses development will also be appeared in this chapter. What is the data source and questionnaire development I will organize in this chapter. Sampling method and data collection method also important in this chapter. Finally, data analysis techniques for the research are also provided.
Chapter Four will explain each the data result or is called data analysis finding and discussion. All these results are used SPSS to find and will show from the questionnaires which I use to survey to research. In this chapter four illuminates respondents’ profile, mean analysis of the variable, reliability analysis, correlation analysis and regression analysis.
Chapter Five is the last chapter which will be narrated the discussion and conclusion for the research. Furthermore, it will cover contribution to research, contribution to practice, limitation of study and suggestion for future research.
