Consumers’ Perceptions of Banking Services in Malaysia

Abstract

In Malaysia, the commercial banks had experienced high growth rates in the last decade. Between 1990 and 1994, the total deposits in the commercial banks had increased by more than on hundred percent. Consistent with the dynamics of the global banking business, there have been many reforms in the Malaysian commercial banks. This includes the introduction of more and new products and services, and the mergers and acquisitions of commercial banks in the country. Currently, there are thirty seven commercial banks and more than one thousand branches operating in the country. This suggests that the intensity of competition among commercial banks appear to high. The basic question is how can commercial banks maintain their competitiveness particularly in the retail services. What are the expectations of the consumers of the banking services? Therefore, it is the purpose of this paper to examine the key dimensions for the commercial banks to develop better retail banking services to the consumers in order to sustain their competitive positions in the industry. More specifically, this paper will examine the consumers’ perception of the current banking services, evaluate the consumers’ preference for quality banking services, and determine the key factors contributing to consumers switching banking services.