Why customers are apprehensive of using E- banking services in Pakistan

Abstract

The research has been conducted on "Why customers are apprehensive of using E-banking services in Pakistan", under the constant guidance and supervision of Sir. Saqib Hayat Tiwana. This project was undertaken by Maria Rana student of BBA (Hens). The empirical part of this study focuses attention on the impact of consumer characteristics and consumer experience in determining adoption and use of a new service delivery system. The current research is comprehensive study of rapid changes in the financial services environment; increased competition by new players from non-banking sector, product innovations, globalization and technological advancement, All these factors have led to a market situation where battle of customers is intense. In order to rise to the challenges service provider are even more interested to enhance their understanding of consumer behavior patterns. This study examines the banking industry in Pakistan that has adopted an approach of networking through automation between banks. It is the foreign and private sectors that have brought in this range by adopting new technologies and going online. Foreign •and private banks are fast catching up with this trend, the nationalized banks too have joined the bandwagon in the recent past. This study evaluates the current situation of the banking industry in Pakistan. Currently, the banking industry is facing increasingly demanding customers and quickly eroding competitive edges. Recent technological breakthroughs in various areas, however, offer opportunities for the banks to excel in customer service quality and convenience . One area of major breakthroughs is the service delivery systems that are reshaping the banking business radically. However, there are relatively few empirical analyses of the impact of e-banking service technology on customers. This study has al so identified the major problems associated with E-banking services that cause customers to lose confidence in electronic delivery channels like e­ banking activities are subject to the same risks as other banking processes. Study also aims to put light on the processes used to monitor and control these risks. These processes may vary because of E-banking heavy reliance on automated systems and the customer's direct access to the institution's computer network . E-banking in Pakistan and the • factors associated with the customers decision to adopt e-banking services have been - discussed in detail. Recommendations have also been made at the end. Bankers are required to understand the attributes customers use to judge service quality and step must be taken to monitor and enhance the service performance so e that customers do not come across any problem while using e-banking services.