Effect of Online Banking on Financial Performance: An Empirical Study on Banking Sector of Pakistan

Abstract

This study focuses on investigating the relationship between online banking and financial performance of banks in Pakistan. This study has considered electronic banking, internet banking, and mobile banking as independent variables. Meanwhile, financial performance is been considered as the dependent variable. However, this study has finalized banking sector of Pakistan to testify the relationship between online banking and financial performance. To testify the relationship, a survey is conducted through an adopted structured questionnaire in which employees working in banking institutions of Pakistan are requested to share their experiences by filling the questionnaires. Then, to identify the results on data gathered from the respondents, statistical tests are used with the help of SPSS software. Some of the statistical tests used in this study include descriptive frequencies, reliability, correlation, regression, etc. Results derived through statistical tests have shown that there exists a significant positive relationship between electronic banking, internet banking, and mobile banking (independent variables) and financial performance (dependent variable) in banking sector of Pakistan. Conclusively, it is proved that change in online banking brings a definite change in financial performance of banking institutions in Pakistan.