Customer Perception Regarding Utilization of Internet Banking in Pakistan

Abstract

Online banking is a substitute of traditional banking and is an essential part of the internet banking. The slower growth rate and huge inoperative market in most of the countries especially in Pakistan highlight the questions why most of the people do not use e-banking. Therefore, the present study is an attempt to find out the possible factors which might impact on individual’s intention to use online banking. The independent variables of our research are E-trust, facilitating conditions, personalization and security concerns. And the dependent variable of this research is "online customer services." This study uses theory of planned behavior into online banking context. To carry out this research survey approach was used. The questionnaire was circularized to 460 respondents sample set of selected banks in Pakistan's Banking sector through online sources i.e. using Google forms and a response of 300 complete questionnaires were received back. The data was analyzed by using Partial Least square structural equation modeling (PLS-SME). The results show that the proposed comprehensive model of utilization of online banking is a penurious model with good predictive ability. The results also indicate that the collected data fit the proposed model well with the support for 4 hypotheses. The study finds out the facilitating conditions plays a significant role in developing positive attitude, followed by online banking. Personalization and security concerns have a significant role in developing positive attitude. Overall, this research has proposed and tested a model of utilization of online banking which does not only have theoretical significance, but also enlarge understanding in developing positive attitude towards online banking.