Internet Banking in Pakistan: Client's Perception & Major Issues

Abstract

In the world of banking, the development in information technology has an enormous effect on development of more flexible payment methods and more-user friendly banking services. Electronic banking services are new, and the development and diffusion of these technologies by financial institutions are expected to result in a more efficient banking system. This technology offers institutions alternative or non-traditional delivery channels through which banking products and services can be delivered to customers more conveniently and economically without diminishing the existing services level. In recent years, almost one fourth Pakistani’s banks have started to offer Internet banking services to their customers. The purpose of this research was to explore and analyze the issues that influence Pakistani’s firms’ intentions toward Internet banking services adoptions. Based on a detailed literature review, a research model was developed. Five sub issues were selected from system trust area in order to gain a better understanding of Internet banking service quality and customer thoughts about these services. A qualitative research approach was used to get a better understanding of theses issues. The empirical data were collected from three different Pakistani’s firms by using questionnaires. Keywords: Internet Banking, Trust of the System, Security, Reliability, Risk, Response Time, Privacy, Firms, Pakistan.