Presentation on Internet Development

8/8/2019 Presentation on Internet Development

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Presented By:M.Omair Iqbal(2005-1-5-5195)Naeem Noorali(2005-1-5-5622)

Development In ElectronicDevelopment In ElectronicBanking In PakistanBanking In Pakistan


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Executive Summary

Introduction

Objectives

Literature view

Electronic Banking and Technological Developments 2007

MethodologyHypothesis( Internet data based + Survey BasedOn Regression Model).

Conclusion

Table Of ContentTable Of Content


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EXE CUTIV E SUMMARYEXE CUTIV E SUMMARYInternet banking refers to systemsInternet banking refers to systemsthat enable bank customers to accessthat enable bank customers to accessaccounts and general information onaccounts and general information on

bank products and services through abank products and services through apersonal computer (PC) or otherpersonal computer (PC) or other

intelligent device.intelligent device.Numerous factorsNumerous factors includingincluding

competitive cost, customer service,competitive cost, customer service,and demographic considerationsand demographic considerations

are motivating banks to evaluateare motivating banks to evaluatetheir technology and assess theirtheir technology and assess theirelectronic commerce and Internetelectronic commerce and Internet

banking strategiesbanking strategies


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Studies show that competitive pressure isthe chief driving force behind increasinguse of Internet banking technology,ranking ahead of cost reduction andrevenue enhancement, in second and thirdplace respectively.

W ealthier households go online to findproduct information more often than lowerincome households.

INTRODUCTIONINTRODUCTION


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OBJ E CTIV EOBJ E CTIV E H ow E- banking has established itself as a firm

favorite amongst leading industrialist andbusinessperson of Pakistan. And in order toemphasize our point of the growth of E-banking in Pakistan we have also carried outa hypothesis which supports the argument infavor of e - banking.

F inally we have rounded our presentationwith a conclusion on the hypothesis testedand the scope of E- banking in near future.


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LIT E RATUR E RE VIE WLIT E RATUR E RE VIE W N ewspaper

Internet W ebsites

Articles


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File under folder Quarter 06

-07.pdf


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File under folder Quarter 06

-07.pdf


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G rowth in EG rowth in E-- bankingbanking overviewoverview

www.sbp.org\psd\reports\yearlyreport 03-04 & 04

-05


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F ile under folder Quarter 06 - 07.pdf


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F ile under folder Quarter 06 - 07.pdf


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ME THODOLOGYME THODOLOGY

The method that we adopted to conduct isexplorative under which we selected thesample size of 25 person, namely from

students, graduates and professionals andthe replied we got from the respondents

through the survey via questionnaire andthe result revealed are analyze in thereport.


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H YPOTH E SISH YPOTH E SISH 0H 0 = Banking Transactions has increased due to e= Banking Transactions has increased due to e- -bankingbanking

services from 06 to 07services from 06 to 07H1H1 = Banking Transactions has= Banking Transactions has N OTN OT increased due to eincreased due to e- -bankingbanking

from 2006 to 07from 2006 to 07

STATISTICS (in %) Quarterly:STATISTICS (in %) Quarterly:

20062006 20062006 20062006 20072007 20072007 20072007PBPB 8383 80.180.1 80.380.3 78.678.6 76.876.8 75.875.8E BE B 1717 19.919.9 19.719.7 21.421.4 23.223.2 24.224.2

PB = Paper base = Percentage of composition of Paper base in total transactionPB = Paper base = Percentage of composition of Paper base in total transactionE B= E lectronic base = Percentage of composition of E lectronic base in total transactionE B= E lectronic base = Percentage of composition of E lectronic base in total transaction

Coefficientsa

83.860 .609 137.691 .000

-1.360 .156 -.975 -8.696 .001

(Constant)Yearly transactionbased on Quaters.

Model1

B Std. Error

UnstandardizedCoefficients

Beta

Standardized

Coefficients

t Sig.

Dependent Variable: composition of Paper base in %.a.

Years = 83.860 -1.360


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HYPOTH E SISHYPOTH E SIS (( Based on the surveyBased on the survey ) )

H 0 = Customer are satisfied with E -banking Transaction/Product andwant E -banking to grow.

H 1 = Customer are not satisfied with E -banking Transaction/Productdont want E -banking to grow.

Question No 1

Whi h i h i ?v i l ki

l i kiki

i

ki l

i

ki v

i l

ki N

i


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E xplanation Of Question N o: 1E xplanation Of Question N o: 1The survey conducted through a questionnaire reveals thepopularity and growth of Internet Banking among thepeoples. The results shows a surprising response of students who are under graduates by preferring 1 00% vote

to internet banking (Pc + E lectronic) while, professionalsout of 20 prefers 1 0 e - banking, 6 Conventional Banking,

4 PC Banking and bankers also show the same responsesas well by voting 6 votes to e - Banking out of 1 0 and

others which includes Doctors, lawyers, E mployers of Private organization and teachers as well also prefers e -

Banking as better option for customers. The graph also

justifies e - Banking popularity among thee individuals.


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Q uestion No#2

whi h e lectron ic med i m use frequent l

one the above

bill presentment

Cash managment

ATM

N o

f c u s t o m e r

i n g r o u p

50

40

30

20

10

0

customer in group * which electronic medium use frequently? Crosstabulation

C oun

9 1 1016 2 2 20

8 1 1 103 1 45 1 6

41 3 1 5 50

s uden sp o ess iona lsbanke seache s

execu ive & o he s

cus o ein g oup

To a l

ATC ash

anag enbill

p esen enNone he

above

wh i h e lec on i ed iu use equen l

To a l


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E xplanation Of Question N o: 2E xplanation Of Question N o: 2The survey conducted through a questionnaire reveals thepopularity among the selected people which electronic mediumthey used frequently. The result shows a massive response onATM which is used frequently among people. Response of studentswho are under graduates by preferring 90% vote to ATM as themostly used e - Banking device, while, professionals out of 20 used

1 6 Automated Teller Machines, 2 used non of the above optionand "2" used cash management. E ven Bankers also used ATM as a

most frequent device of transfer of money. Out of 1

0 banker 8respond ATM W hile others include professionals; teachers andlawyer respond ATM as well. The graph also justifies also thefollowing result.


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Q UE STION NO 3

S afest opt ion to transact for customer

Trad itiona l Bank ingInternet bank ing N o

f c u s t o m e r

i n g r o u p

40

30

20

10

c ustomer in group * Safest option to transa c t for c ustomer Crosstabulation

Coun t

! " #

"

$

% #

! " #

& "

$

' " %

& " ! ' #

( tuden t (

) r of ess iona ls

ban ke r s

teac he r s

execu tive 0 othe r s

cus tome r in 1 r oup

To ta l

Inte r ne tban king

Tr ad itiona l2 an king

Sa f es t op tion to tr ansac tf or cus tome r

To ta l


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E xplanation Of Question N o: 3E xplanation Of Question N o: 3The survey conducted through a questionnaire disclose the

tough competition between Internet Banking and

Traditional Banking, for safest option for customer, as

students who are under graduates like the services of

preferring 1 00% vote to ATM as the mostly used e - Banking

device, while, professionals out of 20 used 1 6 Automated

Teller Machines, 6 used non of the above option. W hile

out of 4 teacher majority preferred Internet banking and

executive class also opt for internet banking.


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Question 4Question 4

threats wh ich are stop ing customers.

others (spec ify)

hack ing

disc los ing of person

Cred it r isk

Miss ing N o

f c u s t o m e r

i n g r o u p

20

10

0

cus to e r i n r oup * th r ea ts wh ich a r e s top ing cus to e r s. r oss tabu la tion

Count

1 2 6 1 108 3 4 153 3 3 91 1 24 1 1 6

17 9 14 2 42

studentsprofess iona lsbankersteachersexecut ive & others

customer in group

Tota l

Cred it r isk

disc los ing of persona l

informat ion hack ingothers

(spec ify)

threats wh ich are stop ing customers.

Tota l


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E xplanation Of Question N o: 4E xplanation Of Question N o: 4The result above shows through a questionnaire reveals the

hazards and problem from which people hesitate from

transacting through e - banking, the people which considered

s threats are H acking, as most students tick hacking asthreats and hurdle in growth of E- banking, 4 professionals

think hacking, 3 persons think disclosure of information as

a threat and 8 tick for credit risk and others which include

some major persons of society includes 5 vote for creditrisk.


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Q UE STION NO 5Q UE STION NO 5

customer in group * which bank provide secure services Crosstabulation

C oun

1 9 101 19 201 9 10

4 41 5 64 46 50

s uden sp o ess iona lsbanke seache s

execu ive & o he s

cus o ein g oup

To a l

loca l banks o iegn banks

whi h bank p ov ide secu ese v i es

To a l

wh i3 h bank p 4 ovide secu 4 e se 4 vi3 es 5

6

o 7 iegn banksloca l banks

8

o9

c u s

@

o

A

eB

i n g

B

o u p

50

40

3 C

D

C

10

0


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E xplanation Of Question N o: 5E xplanation Of Question N o: 5The result above shows through a questionnaire reveals the

better services in terms of efficiency is provided by F oreign

Bank or Local Bank. The result proof a massive preference

of F oreign Bank by each individual as only 1 student among

20 students preferred the services while 1 9 others vote for

F oreign Bank. As the same trend shows by professionals,

Bankers and others as they all like the services of F oreign

Bank. The graph also reveals the preference of individuals

to transact through and like the services of F oreign Bank.


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Q UE STION NO 6Q UE STION NO 6

Major factor of decline in tradional ban ing

l a c o f c o m m i t m e n t b

l a c o f e f f i c i e n c y o

l a c o f c o m m u n i c a t i o

l a t e s u p p l y o f s t a t e

d e l a y i n u p d a t i n g o f

l o n g w a i t a t t e c o u

l o n g d e l a y i n a n d l i

o f c u s

t o m e r i n g r o u p

30

20

10

0


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E xplanation Of Question N o: 6E xplanation Of Question N o: 6The result above shows which is conducted through a

questionnaire discloses the major factors which results in a

decline of Traditional Banking. Long delay in handling of

transaction and Long wait at the counters seems to be theactual factors which results in customer dissatisfaction.Delay in handling of transaction and long wait at counters.But the actual conclusion can be made by the Bankers itself

as they know what are the problems they think thecustomer faces, as they voted for long wait at counters.Others also voted as same.


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Q U E STION NO 7Q U E STION NO 7

c ustomer in group * hy internet banking is not popular Crosstabulation

Coun t

s tuden tspr of ess iona lsban ke r steac he r sexecu tive othe r s

cus tome r in gr oup

To ta l

con ven tia lapp r oac h

lac k of f inancef or the ban ks

lac k of awa r eness o the r s .

wh inte r ne t ban king is no t popu la r

To ta l

wh E inte r ne t ban king is no t popu la r

othe r s .

lac k of awa r eness

lac k of f inance f or

con ven tia l app r oac h

F

o f c u s t o m e r

i n g r o u p

40

30

20

10

0


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E xplanation Of Question N o: 7E xplanation Of Question N o: 7The result above shows through a questionnaire reveals thefactors which act as a hurdle in the growth of e - banking asmost people consider Lack of awareness as the main factor.Three Students out of 20 thinks the same way 1 vote for

traditional approach and 2 think for lack of finance as thehurdle in growth of e - banking in Pakistan. Professionalthink lack of awareness as well as 6 votes in favor while 6think conventional Banking as decline growth of e - banking.The bankers decisions here holds important value as they

think lack of awareness among the people also the majorfactor which results in low growth of e - Banking and Othersvote as same.


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QUESTION NO 8

cus tome r in G r oup * Impo rt an tH

en ifit f o r tI

e cus tome r s o f in te r ne tH

ank in Cr oss tabu la tion

Coun t

6 4 1014 3 3 20

9 1 101 1 2 45 1 6

35 10 5 50

s tuden tspr of e ss ional sbanke r stea ch e r sexe cutiP e Q othe r s

cus tome r in gr oup

Total

con P enien ce

be tte r knowledgeof s ta te of a cc ou ts

wide r r angeof pr odu ctsand s e r P ice

a P ailable

Impo rtan t beni f it f or the cus tome r s of inte r ne tbankin

Total

Impo rtan t beni f it f or the cus tome r s of inte r ne t bankin

wide r r ange of pr odu

be tte r knowledge of

con R enien ce

N o

f c u s t o m e r

i n g r o u p

40

30

20

10

0


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QUESTION NO 9

Can e lectron ic bank ing rep lace standard bank ing?

noyes N o

f c u s

t o m e r

i n g r o u p

40

30

20

10

cus to e r i n r oup * an e lec tr on ic bank ing r ep lace s tanda r dbank ing? r oss tabu la tion

Count

7 3 10

13 7 20

6 4 10

2 2 4

5 1 6

33 17 50

students

profess iona ls

bankers

teachers

execut ive & others

customer in group

Tota l

yes no

Can e lectron ic bank ingrep lace standard

bank ing?

Tota l


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E xplanation Of Question N o: 8 & 9E xplanation Of Question N o: 8 & 9Question N o: 8

The above question was about the important features of

internet banking, where most of persons opt for

convenience option and few go with the option of betterknowledge and wider range of product.

Question N o: 9

The last question was asked that the internet banking can

replace the traditional banking, majority says yes to it. W e

can cross check with the help of cross table


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ANOVA

1.280 4 .320 .917 .46215.700 45 .349

16.980 491.830 4 .458 .170 .953

121.050 45 2.690122.880 49

2.537 4 .634 3.177 .0228.983 45 .200

11.520 49

7.943 4 1.986 2.368 .07031.033 37 .83938.976 41

9.667E-02 4 2.417E-02 .303 .8743.583 45 7.963E-023.680 493.747 4 .937 .329 .857

128.033 45 2.845131.780 49

2.167 4 .542 .671 .61636.333 45 .80738.500 49

4.167 4 1.042 2.629 .04717.833 45 .39622.000 49

.337 4 8.417E-02 .348 .84410.883 45 .242

11.220 49

Between GroupsWith in Groups

Tota lBetween GroupsWith in GroupsTota lBetween GroupsWith in GroupsTota l

Between GroupsWith in GroupsTota lBetween GroupsWith in GroupsTota lBetween GroupsWith in GroupsTota l

Between GroupsWith in GroupsTota lBetween GroupsWith in GroupsTota lBetween GroupsWith in GroupsTota l

Better opt ion for customers

wh ich e lectron ic med iumuse frequent ly?

S afest opt ion to transactfor customer

threats wh ich arestop ing customers.

wh ich bank prov idesecure serv ices.

Major factor of dec line intrad iona l bank ing

why internet bank ing isnot popu lar

Important ben if it for thecustomers of internetbank in

Can e lectron ic bank ingrep lace standardbank ing?

S um of S quares df Mean S quare F S ig.Questions G roups


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CONCLUSIONCONCLUSION

Based on the hypothesis and the sampletest we can conclude that the survey hasthe significant impact and we dont refuseH 0 that the Customer is satisfied with E-banking Transaction/Product and want E-banking to grow. W e can see the A N OVA

table and the significance of the entiretest.

H0 = Customer are satisfied with E -banking Transaction/Product andwant E -banking to grow.

H1 = Customer are not satisfied with E -banking Transaction/Productdont want E -banking to grow.


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RecommendationRecommendation

INN OVATIV E PRODUCT

E- BANK IN G DE VE LOPM E N T PRO G RAM

S E CUR E AN D ROBUST E N VIOR N ME N T

OVE RCOM E TH E RE SISTA N CE TO C H AN G E ATTITUD E

LOCAL BANK START G IVI N G COMP E TITIO N TOF OR E IG N BANK S


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Documents

Presentation on Internet Development