Navigating Challenges to Mobile Banking App Adoption in Pakistan’s Banking Industry: A focus on Habib Bank Limited (HBL) and Bank Alfalah (BAFL)

Abstract

In this day and age, mobile banking is the standard for managing finances for most people across the world. It is a faster and more convenient way than any existing banking alternative however a country like ours still hasn’t caught up yet with the rest of the world therefore this project aims to investigate the factors influencing mobile banking adoption in Pakistan with the intention to identify barriers and propose real world actionable solutions that to enhance user engagement and trust in digital financial services. The research that we have carried out in this project employed a mixed-method approach, combining a comprehensive review of existing literature with the analysis of survey data that we have collected from Pakistani banking customers as well as insights from banking institutions. The survey that we designed and disseminated to Bank Customers gave us a closer look at who’s using mobile banking in Pakistan, how often they use it, how safe they feel doing so, how easy the apps are to use, and what kind of support they get when things go wrong. A few things stood out to us to begin with first, many people find the apps hard to use or they don’t work properly on all smartphones, which makes it especially tough for folks who aren’t super comfortable with or used to technology. Second, there’s a big concern around privacy, people worry that their personal info could be misused, which makes them hesitant to fully trust these apps in the first place or let banks customize services for them. Another issue is bad quality network conditions, especially in rural areas, which makes accessing mobile banking harder for a lot of people. Based on our insights from this survey, banking institutions and from reviewing the related literature we came to the conclusion that to encourage more people to use mobile banking, banks need to address both the technological and trust-related challenges that come with mobile banking. Simplifying app designs, ensuring data privacy, and improving infrastructure are some of the key steps. Additionally, banks should seek diverse and representative customer feedback to tailor their services effectively. To begin with, the design of mobile banking apps should be simple enough and user-friendly so that people from all age groups and levels of digital experience can use them without confusion or frustration. It’s important to note that we shouldn’t let these platforms don’t get or feel overly complicated, especially for users who aren’t very tech-savvy. Secondly, banks should take stronger steps to protect users’ personal information, as trust in how data is handled plays a big role in whether people feel safe using digital services and can often be the determining choice with accepting mobile banking for a lot of individuals. Thirdly, improving internet access essentially in rural or less developed areas can potentially make sure everyone can benefit from mobile banking. By hyper-focusing on these areas, banks can make mobile banking more appealing and accessible, which can in turn lead to increased lead generation, customer retention, customer satisfaction and broader financial inclusion in Pakistan.