E-Banking Challenges in Pakistan: An Empirical Study

Abstract

Electronic banking has provision networks that replaces and replicated various activities currently executing by the bank. Hence e-banking now plays a vital role to carry out the individual as well as corporate financial activities execution. Even e-banking activities based on the internet or virtual private networks own by the bank, therefore communication channel, distribution channel and transactions channel must be secure. The research article explores the current trends in the e-banking uprising that has set a goal in the Pakistani banking sector to provide any easy interface to their customers which avail the e-banking services without any physical presence in the bank vicinity. This empirical study was carried out in Pakistan which indicating the current issues encounter by the e-banking application in various banking industries. The analysis in this paper further reveals that approachability of internet in banking sector makes customer reluctant to access their bank accounts electronically. The usage of e-banking significantly affects the customer trust due to unavailability of cyber security.

Factors Driving the Adoption of E-banking Services Based on the UTAUT Model

“…E banking has remained unexploited by many banks to maximise its full potential, this provides more opportunity for banks to move its Clients to the e-platforms. Unavailability of cyber security and cordiality of internet in banking significantly affects the customer trust and makes customer reluctant to access their bank accounts electronically (Hussain et al, 2017). Other factors that have been sighted to being of great challenge by authors is the unreliability of the system which have proved to be unstable arising from technological challenges, links & Network problems these are evident from the number of countless outages that users experience due to connectivity issues (Hussain et al, 2017).…”

Issues of E-Banking in Pakistan: Managers’ Perceptions about E-Banking Issues

“…The infrastructure includes all the technological equipment that develops into any eco-system where all the things, software to hardware, are integrated to perform unified tasks with robustness and considerable level of security (Sohail & Shanmugham, 2003;Abid & Noreen, 2006;Yang et al, 2007;S. N. A. Kazmi, 2010;Hussain et al, 2017). The maximisation of value from the e-banking operations on the online platform is provided to the marketers and business promoters (Domazet & Neogradi, 2019).…”

“…The system must be well-established enough as per the needs of the bank(s) so that the managers could rely on the system in the time of security breach, transactional load and meeting the needs of the customer demands. IT based self-efficacy reflects the perception of the management and operational capability of the system to handle the addition of new business processes, inculcation of legality in terms of step-by-step procedure, and protection against the frauds and cyber-attacks (Esfahani, 2019;Hussain et al, 2017;S. N. A. Kazmi, 2010;Khurana, 2019;Ojeniyi & Abdulhamid, 2019).…”

Organizational and Personal Drivers of the Financial Sector: A Focus Group of Banking Officials in Pakistan

“…The challenges for the financial institutions have been aggravated in South Asia due to weak national institutional support (Ali, Butt, & Butt, 2019;Basheer, Hidthiir, & Waemustafa, 2019;Chu, 2018). In today's competitive environment, the industry dynamics are changing daily, and banking professionals have to meet a growing number of challenges to perform their responsibilities effectively and efficiently (Bashir, Yugang, & Hussain, 2020;Hussain et al, 2017). The key challenges faced by the banking industry include but are not limited to: the cutthroat rivalry between national and multinational banks, satisfying highly information-savvy customers, adhering to the State Bank of Pakistan (SBP), providing an unmatched level of banking services.…”