Integrating 'Tech and Touch' to Achieve Widespread Internet Banking Acceptance in Asian Cultures: The Case of Thailand

Abstract

This research explores bank and corporate customer views on customer satisfaction with interpersonal and Internet channels within the banking sector in Thailand, and examines the concept of integration to blend the two channels rather than operating them as separate alternatives. Qualitative in-depth interviews with top management of leading commercial banks and with financial officers of large corporate customers of these banks confirmed that corporate customers still prefer personal contact most of the time, although they find the Internet channel useful for some things. Questionnaire survey with customers results indicate that an integrated Internet service channel can be an attractive new option for banks and their corporate customers. Thai banks, however, are following worldwide trends by offering Internet banking as a separate service channel. The results suggest that even though Integration can enhance customer satisfaction with both Internet banking and interpersonal service encounters, it rather decrease both dissatisfaction. This study concludes that the corporate customers, who are more likely to use Internet banking services, would still prefer to switch freely back and forth between channels without the need for personal contact. However, the corporate customers who are more likely to use face-to-face services still prefer personal contact. Therefore, the integration of interpersonal service channel with Internet banking service channel is an important consideration in terms of enhancing customer satisfaction. The overall interpersonal satisfaction can enhance customer loyalty. However, the moderating effect of Integration weakens the relationship between overall interpersonal satisfaction and customer loyalty. It might be because if customers widely adopt Internet banking services, when they face the problems with bank staff, they may switch to use Internet banking services. Therefore, the strong relationship with the customers can be reduced, which may lead to lower customer loyalty.