INTERNET BANKING IN PAKISTAN (Habib Metropolitan Bank Limited)

Abstract

With the current uncertainty in the economic climate, banks are focusing on how to reduce costs, target untapped market and increase efficiency in their distribution channels. Banks diverge the customers into alternate delivery channels to reduce the maintaining or expansion cost of branches, reduces cost on hiring more trained personnel, and demonstrably improves service quality standards. From these cost cutting approaches, banks are able to trim down its product cost and offering value- added services for customer acquisition and retention. Internet Banking is an alternate delivery channel which flourished rapidly due to the high-speed Internet, improved and reliable infrastructure and consumer preference to manage transactions through the internet rather than visiting physical bank branches. This thesis focuses and narrates the importance of alternate delivery channels specially internet banking in banking sector of Pakistan. It describes the company’s core objective and reasons for incorporation of Internet Banking into their business model. The research is conducted while considering four key variables: market structure, Bank’s perception on internet banking, Customer’s perception on internet banking, and HMB’s Technological Frame Work. Literature review enlightens the benefits of Internet banking to the internal structure and efficiency of routine banking through local and foreign literature. Market structure is considered as moderating variable whereas bank perception, customer perception and technological frame work are dependent variables.