The Effect of Modern Technology on Performance of Commercial Banks: A Case On Twin Cities of Pakistan

Abstract

This study is focused mainly on investigating the relationship between modern technology and banks’ performance in commercial banks of twin cities in Pakistan. This study has considered electronic banking, internet banking, mobile banking, and telephone banking as independent variables. Whereas, banks’ performance has been considered as the dependent variable in this study. However, this study has finalized commercial banks in twin cities of Pakistan to testify the relationship between variables mentioned above. The major emphasis in this study has been on assessing the relationship between electronic banking, internet banking, mobile banking, and telephone banking, representing modern technology (independent variables) and banks’ performance (dependent variable) in commercial banks of twin cities in Pakistan. To prove this relationship, a survey has been conducted through an adopted structured questionnaire regarding this literature, in which officials working in commercial banks of twin cities in Pakistan, have been requested to share their experiences by filling the questionnaires. Then, to identify the results on data gathered from the respondents, statistical instruments have been used. Some of the statistical instruments used in this study includes descriptive frequencies, reliability, correlation, regression, etc. Results derived through statistical instruments have shown that there exists a significant positive relationship between electronic banking, internet banking, mobile banking, and telephone banking (independent variables) and banks’ performance (dependent variable) in commercial banks of twin cities in Pakistan. Conclusively, it can be said that modern technology positively impacts banks’ performance in commercial banks of twin cities in Pakistan.