Awareness of Electronic Banking in Pakistan 1
Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)
AWARENESS OF ELECTRONIC BANKING IN PAKISTAN
Awareness of Electronic Banking in Pakistan
Nouman Anwar Dar
MCB Bank Limited
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Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)
Abstract
Electronic Banking is an essential sector of banking industry. E-banking services are gaining
the attention of conventional banking’s customers rapidly. It has brought the revolutionary
changes in the Pakistan banking industry in terms of customer and business perspectives.
Electronic banking has got popularity in the developed as well as developing countries
because it saves people time, reduces costs and people have access to all banking services on
the click of a button. More often, the new innovated system allows the customers to touch
their accounts at home using a mobile device or electronic terminals. This research paper
focuses on growth and awareness of electronic banking in Pakistan. Electronic banking is
today’s need as it provides easy way to monitor an account. Most of the commercial banks in
the country switched to the convenience ways in accessing the accounts of the customers and
giving them the freedom for the easy access. “The volume of e-banking transactions reached
125.9 million while the value of these transactions aggregated to Rs 12 trillion showing an
increase of 15.5 percent and 19.0 percent respectively as compared to the first half of year
2011”. Electronic distribution channels provide alternatives for faster delivery of banking
services to a wider scope of customers. But despite all the opportunities and benefits created
by the e-banking, there are still many challenges that are present in the financial
sector. There are also some limitations of e-banking as it requires awareness, knowledge and
skills to operate it.
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Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)
Introduction
The developments taking place in information and communication technology are increasing
competition in financial institutions worldwide. Thus, the deployment of
advanced technologies is essential to achieve a competitive advantage. In the world of banking,
the development of E-Banking has an enormous effect on development of more flexible
payment methods and more user friendly banking services.
Recently, the banking industry was highly affected by the technology evolution that
transformed the way banks deliver their services, using technologies such as automated teller
machines, phones, the Internet, credit cards, and electronic cash. In line with global trends,
electronic banking in Pakistan has been undergoing many changes. Electronic banking is a
term for the process by which a customer may perform banking transactions electronically
without visiting the bank itself.
E-Banking refers to systems that enable bank customers to access accounts and general
information on bank products and services through a personal computer (PC) or other device.
There are many benefits of e-banking as it provides easy way to monitor an account, we can
shop, pay bills, buy item, take part in auction e.g. Amazon.com and E-Bay, and transfer
money from anywhere at any time, it reduces costs, it saves time, and vice versa . This study
focuses on growth and awareness of electronic banking in Pakistan.
E-banking systems can vary significantly in their configuration depending on a number of
factors. Financial institutions can choose their e-banking system configuration, including
outsourcing relationships, based on four factors:
Strategic objectives for e-banking
Scope, scale, and complexity of equipment, systems, and activities
Technology expertise
Security and internal control requirements
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Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)
E-banking systems rely on a number of common components or processes. The following list
includes many of the potential components and processes seen in a typical institution:
Website design and hosting
Firewall configuration and management
Network administration
Security management
Internet banking server
E-commerce applications (e.g. bill payment, lending, brokerage)
Internal network servers
Core processing system
Programming support
Automated decision support systems
These components work together to deliver e-banking services. Each component represents a
control point to consider.
Basic information E-Banking/web sites that just disseminate information on banking products
and services offered to bank customers and the general public;
Simple transactional E-Banking /web sites that allow bank customers to submit applications
for different services, make queries on their account balances, and submit instructions to the
bank, but do not permit any account transfers;
Advanced transactional E-Banking/web sites that allow bank customers to electronically
transfer funds to/from their accounts pay bills, and conduct other banking transaction online.
Usually, E-Banking refers to simple and advanced transactional E-Banking.
Research Objective
This research paper is an attempt to find out that whether the people of Pakistan are well
aware of electronic banking and it is also an attempt to look into the growth, issues and
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Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)
concerns in the banking sector and tries to analyze the views of the consumers and the
banking environment.
It is also an attempt to gauge the current implementation status of E-Banking in Pakistan. We
intend to identify major trends and objectives of current E-Banking activities in Pakistan. The
basic thrust of the research is that it offers a brief insight into the E-Banking activities being
performed. The major flaws and improvements will be highlighted and future prospects for
growth will also be outlined. This research basically tries to give a brief look into the E-
Banking implementation by looking at the services being offered and their potential usage. E-
Banking is one of the major ways to reduce transaction costs for the consumers. In this
research report we have highlighted products being offered and the various consumer
responses and to present a view of the various technologies in use within Pakistan. Our
research can prove to be beneficial for the educational institutions and for the financial sector,
as it would provide them with an insight into the various E-Banking aspects in Pakistan.
The field of e-banking is rapidly growing and there's no doubt that the automation of banking
processes has opened new doors of opportunities for IT sector in Pakistan. But the problem is
that the expertise needed by the banks is of the international standard. In this age when
everyone is busy and has no spare time, e-banking provide a person time convenience,
flawless transactions and also improve economic conditions of bank related fields.
Research Methodology
In our research we followed the use of primary research and analytical tools to reach our
conclusions.
Primary Source
In primary sources data is collected by using questionnaire as a data collection instrument. In
this regard questions were asked regarding internet usage, followed by awareness of E-
banking and its types, about the benefits of E-Banking and a few questions regarding the
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Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)
banking services if they were using services of some bank at all. The data was collected from
university students, professionals and few people on streets to inquire about the current status
of awareness regarding E-Banking. The questionnaire includes close-ended questions and
they were on likert scale.
We have collected information from websites of major banks in Pakistan, which are
providing E-Banking services in the country and State Bank of Pakistan for the detailed
analysis. Following are some informative sources:
Database of State Bank of Pakistan
Quarterly Newsletters of State Bank of Pakistan on Branchless Banking
Branchless Banking Conference
Literature Review
The E-Banking operations are performed through the internet, and ones finances are under
control at all times whether you are making payments, issuing stock exchange orders or
simply require account and custody account information. For many consumers, electronic
banking means 24-hour access to cash through an automated teller machine (ATM) or Direct
Deposit of paychecks into checking or savings accounts. But electronic banking now involves
many different types of transactions. Electronic banking uses computer and electronic
technology as a substitute for cheques and other paper transactions. Electronic Banking is
initiated through devices like cards or codes that let you, or those you authorize, access your
account. Many financial institutions use ATM or debit cards and Personal Identification
Numbers for this purpose. Some use other forms of debit cards such as those that require, at
the most, your signature or a scan.
E-banking is also one of the main products of e-commerce that duly provides services to
large populations. This advantage is applied among the people who belong in the middle and
upper social status. However, the electronic transactions are still part of the regulation due to
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International Conference on Business Management (ISBN: 978-969-9368-06-6)
its heavy technological advancements and its interaction in the public. In addition, because of
the continuous development and expansion of the services to the large populations, banking
transactions are expected to be more popular because of the lower costs and power to reach
thousands of users or customers. From the conventional cheques to modernized cards i.e.
ATM, credit/debit cards and other electronic banking instruments that are used to process
transactions, e-banking in Pakistan is described as growing. The payment system
infrastructure in Pakistan has maintained an overall growth trend for the second half of FY11.
As many as 466 more ATMs were added to the population of ATMs bringing the total
number of ATMs in the country to 5,200 (Payment Status Department, State Bank of
Pakistan)
The convenience resulting to e-banking reduced the volume and value of paper-based
transactions in Pakistan. Through the evolution of banking system emphasized in electronic
mode, the retail payment transactions continuously increase for the foster development. The
concept of electronic banking has been defined in many ways (e.g. Daniel, 1999). According to
Karja luoto (2002) electronic banking is a construct that consists of several distribution channels.
Daniel (1999) defines electronic banking as the delivery of banks' information and services by
banks to customers via different delivery platforms that can be used with different terminal
devices such as a personal computer and a mobile phone with browser or desktop software,
telephone or digital television. Electronic banking consists of any system that uses electronic signals
tore place people or paper.
Foreign banks in Pakistan are initiators for introducing E-banking practices in mid 1990’s. In
late 90’s domestic banks also adopted the technology and e-banking services like ATM cards
and debit cards. According to the definition provided by (Abid et al., 2006), “Any use of
information and communication technology and electronic means by a bank to conduct
transactions and have interaction with the stakeholders”. Electronic banking provides ease
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Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)
and facilities to their customer. Electronic banking provides convenience to their customer to
use bank website for all kind of transactions in secure environment. Customers can interact
with bank website 24 hours day and seven days a week.
Woodall (2003) suggested the ways a country can adopt e-readiness. These factors are
interrelated with country social, economical, political profile and may vary in size and quality
depending upon digital facilities and infrastructure available for Information Communication
Technology (ICT). He recommended that policy maker have to make environment feasible
for ICT and digital services and create awareness among society about associated profit
which individuals and business organization can get by linking commerce and societies with
these technologies. According to Porter (2005), country e-readiness is measure of facilities
and digital connection which counties must have to adopt electronic services. Countries have
to adopt these facilities as it an integral contributor for economical development of country.
Growth Of Electronic Banking In Pakistan (2008 To 2011)
Electronic banking (e-banking) and branchless banking transactions continued to show
growth momentum as both the volume and value of these transactions displayed a rising trend
in the country during the last quarter of the fiscal year (2008-2009).
Awareness of Electronic Banking in Pakistan 9
Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)
1. According to the Fourth Quarterly Report on “Branchless Banking/ Electronic Banking,”
the volume and value of e-banking/ branchless banking transactions in the country reached at
44.5 million and Rs 3.9 trillion respectively showing an increase of 11.1 percent in number
and 7.8 percent in value as compared to 6.5 percent increase in number and 11.4 percent
increase in value in the previous quarter of FY09 (Jan-March 2009).
2. During the fourth quarter (April-June) of FY09, the volume and value of online banking
transactions in the country reached at 13.7 million and Rs 3.7 trillion respectively showing a
growth of 10.8 percent in numbers and 7.4 percent increase in value as compared to 14.8
percent increase in numbers and 11.7 percent increase in value in the previous quarter.
3. According to the report, during the fourth quarter, the volume and value of ATM
transactions in the country reached at 25.2 million and Rs 189.0 billion respectively showing
a growth of 12 percent in numbers and 12.2 percent increase in value as compared to 5.2
percent increase in numbers and 10.2 percent increase in value in the third quarter.
4. During the period under review, the volume and value of internet transactions in the
country recorded at 0.6 million and Rs 22.2 billion respectively, showing an increase of 15.4
percent in numbers and 35.7 percent increase in value as compared to 2.8 percent decline in
numbers and 2.1 percent increase in value in the previous quarter. Whereas, the volume and
value of mobile transactions in the country recorded at 21,733 and Rs 4.9 million respectively
showing an increase of 40.6 percent in numbers and 48.2 percent increase in value as
compared to 12.1 percent decline in numbers and 15.4 percent decline in value in the
previous quarter.
5. According to the report, the total quantity of ATM machines during April-June, 2009
period reached at 3,999 registering a growth of 5.7 percent as compared to 7.4 percent
increase in the previous quarter. The volume of Real Time Online Branches (RTOB) during
the quarter reached at 6,040 and recorded a growth of 1.3 percent as compared to 1.8 percent
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Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)
increase recorded in the previous quarter. The total quantity of POS terminal reached at
49,715 showing an increase of 2.7 percent in number as compared to 1.1 percent decline in
previous quarter.
6. It said that total quantity of cards (debit / credit /ATM only) in circulation during fourth
quarter of FY09 reached at 8.9 million which shows an increase of 6.6 percent as compared
to 3.1 percent decline in the previous quarter. The quantity of credit cards has decreased by
0.6 percent as compared to 6.2 percent decrease in the previous quarter. The quantity of debit
cards has increased by 9.6 percent as compared to 2.5 percent decline in previous quarter and
stood at 6.4 million, it added.
7. The report pointed out that paper-based instrument during the fourth quarter of FY09
witnessed a growth of 4.8 percent to 85.6 million in numbers compared with 1.4 percent
decline in the previous quarter (81.7 million). The value of transactions decreased by 6.1
percent to Rs 33.1 trillion as against 1.6 percent increase or Rs 35.3 trillion recorded during
third quarter of FY09.
It said that during the last six quarters the transition from manual (paper-based) banking to e-
banking has been gradual, yet consistent, in terms of both volume and value of transactions.
The composition (in percentage) of electronic transactions increased to 34.2 percent of the
total number of transactions as compared to 32.9 percent recorded last quarter. In terms of
value, the same increased by 10.5 percent as compared to 9.3 percent rise recorded last
quarter.
E-Payment Grow To Rs. 4.1trillion FY 2010
The electronic payments continued to show a rising trend as both the number and value of
such transactions increased in the second quarter (Oct-December) of the current 2009-10
fiscal year (FY10).
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Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)
As per State Bank’s Second Quarterly Report on Retail E-Payments and Paper Based
Instruments released on Friday, the volume and value of E-Payments transactions in the
country during the second quarter of FY10 reached 46.4 million and Rs 4.1 trillion
respectively showing an increase of 0.2 percent in number and 6.1 percent increase in value
as compared to 4.0 percent increase in number and 0.3 percent increase in value in the
previous quarter.
According to the Report, total number of Automated Teller Machines during the second
quarter reached to 4,217 registering a growth of 4.0 percent as compared to 1.4 percent
increase in the previous quarter. The volume of Real Time Online Branches (RTOB) during
second quarter reached at 6,587 and recorded a growth of 7.6 percent as compared to 1.3
percent increase recorded in the previous quarter. The total quantity of POS terminal reached
50,920 showing a decrease of 1.5 percent in number as compared to 4.0 percent increase in
previous quarter. The volume and value of debit cards transactions were reported at 29.98
million and Rs. 235.25 billion respectively showing an increase of 3.7 percent in numbers
and 9.7 percent increase in value as compared to 3.0 percent increase in numbers and 2.2
percent increase in value in the previous quarter. Similarly, during the second quarter of
FY10 the volume and value of credit cards transactions were reported to be 3.8 million and
Rs. 17.0 billion respectively showing a decrease of 10.0 percent in numbers and 8.7 percent
decrease in value as compared to 6.9pc decrease in numbers and 2.6pc decrease in value in
the previous quarter. In addition, the total number of cards (debit / credit /ATM only) in
circulation during the second quarter reached to 9.95 million which shows an increase of 6.8
percent compared to 4.3 percent increase in the previous quarter.
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Proceedings of 2nd
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E-Banking Transactions Rose To Rs. 12 Trillion In Fiscal Year 2011 (Jan-July 2011)
The value of e-banking transactions aggregated to Rs 12 trillion during the second half of
FY11, showing an increase of 19.0 percent as compared to the first half of the year, according
to State Bank of Pakistan's Payment Systems Half Yearly Review.
The volume of such transactions during the period under review reached 125.9 million,
depicting an increase of 15.5 percent as compared to the first half of FY11, the Review said,
adding that payment system infrastructure in Pakistan had maintained overall growth trend
for the second half of FY11. The Automated Teller Machines (ATMs), which are the largest
channel of e-banking transactions, showed 16.5 percent increase in number of transactions,
and 19.0 percent increase in value, raising the share of ATM transactions in total e-banking
transactions to 58.8 percent and 5.4 percent respectively, the Review said, adding that the
number of Real-Time Online Branches (RTOB) transactions grew by 14.7 percent and the
value of transactions increased by 18.8 percent as compared to first half of FY11.
"These transactions contributed 31.6 percent in total volume of e-banking, and 93.2 percent in
the value of such transactions respectively," the Review observed.
According to the Review, 466 more Automated Teller Machines were added in the system,
bringing total ATMs in the country to 5,200, while 380 more bank branches were converted
into Real Time Online Branches (RTOBs).
"A total of 7,416 bank branches (78 percent) are now offering real time online banking out of
total 9,541 branches in the country.
The number of plastic cards at 14 million also registered an increase of 6.2 percent during the
period under review as compared to the numbers during the preceding half year," the Review
added. It said that total number of POS terminals at 37,232 depicted a decline of 16 percent
as compared to 44,383 terminals in the first half of FY11.
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Proceedings of 2nd
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"This decline in the number of POS terminals is due to business considerations in terms of
which investment in ATMs was considered a more viable strategic option. The volume of
POS transactions in the country during the second half of FY11, however, reached 7.2
million showing an increase of 2.8 percent. The value of POS transactions at Rs 33.9 billion
registered a 4.4 percent decrease as compared to the first half of FY11," the Review said.
The overall increasing trend in payment system infrastructure was also witnessed in
the large value payments settled through Pakistan Real-time Interbank Settlement Mechanism
(PRISM), which increased by 14.8 percent in volume and 21.9 percent in terms of value as
compared to the first half of FY11, it said and added that the major portion of PRISM
transactions, in terms of value was of settlements against securities which accounted for 46
percent of the total transactions followed by Interbank Funds Transfers at 37 percent and
settlement of retail cheques through multilateral clearing at 15 percent.
The Review said that the volume and value of paper-based retail payments during the
second half of FY11 were recorded as 177.3 million and Rs 84.6 trillion respectively
indicating an increase of 3.5 percent in the volume of transactions."The value of transactions
has increased by 13.3 percent as compared to the first half of Year 2011. The contribution of
paper-based payments in total retail payment transactions was 58.5 percent in terms of
volume and 87.5 percent in terms of value," it added.
July to September (2011)
Banking institutions are showing tremendous growth day by day. Significant positive
changes shown in statistics table: 2 below during the 3rd
quarter of year 2011.
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Growth of E-Banking in Pakistan – Progressive Statistics FY 2011
(January – June 2011)
Plastic Card Infrastructure
Number of ATM\Debit Cards 12, 631, 959
Number of Credit Cards 1, 384, 814
ATM Transactions
Number of Automated Teller Machines (ATMs) 5, 200
Volume of Transactions processed through
ATMs
74, 068, 117
Value of Transactions processed through ATMs Rs. 654, 449 Million
Average value of ATMs per Transaction Rs. 8, 836
Point of Sale Transactions
Number of Points of Sale (POS) 37,232
Volume of Transactions processed through POS 7,241, 861
Value of Transactions processed through POS Rs. 33,940 Million
Real Time Online Branches (RTOB’s)
Number of Real Time online branches 7,416
Volume of Transactions 39,744,622
Value of Transactions Rs. 11,214 Billion
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Proceedings of 2nd
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Mobile Phone Banking
Number of Banks providing mobile Banking
facility
11
Volume of Transactions 1, 918, 034
Value of Transactions Rs. 5,235 Million
Internet Banking
Number of Banks providing Internet Banking
facility
23
Volume of Transactions 2,584,717
Value of Transactions Rs. 124,837 Million
Call Centers
Number of Banks providing Call Center facility 21
Volume of Transactions 363,716
Value of Transactions Rs. 3,087 Million
Number of Registered Users
Call Center Banking 8,071,483
Mobile Banking 933,419
Internet Banking 860,105
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Proceedings of 2nd
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Pakistan Real Time Inter Bank Settlement Mechanism (PRISM)
Number of Direct Participants 42
Volume of Transactions 176, 311
Value of Transactions Rs. 45, 505 Billion
July-September 2011
No. of
Transactions
Volume
Transacted
(Rs. in millions)
Electronic Product/Service
Fund Transfers
Account-to-Account Fund transfers 188,941 16,093
Person-to-Person Fund Transfers 4,839,090 18,233
Account-to-Person Fund transfers 498,752 646
Person-to-Account Fund Transfers 46,528 260
Deposit - -
Cash-in (Deposit) 785,259 569
Cash-out (Withdrawal) 37,012 73
Bill Payments & Top-Ups - -
Utility Bills Payments 7,631,435 10,400
Merchant Payments 387,512 8,861
Mobile Top-ups 1,267,965 73
Loan - -
Loan Disbursement - -
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Loan Repayment 10,216 23
Others - -
Donations 70,328 2
Others 103,634 3,481
Total 15,866,672 58,711
188,941
4,839,090
498,752
46,528
785,259
37,012
7,631,435
387,512
1,267,9650
10,216 70,328 103,634
No. of Transactions jul-sep 2011 Account-to-Account Fund transfers
Person-to-Person Fund Transfers
Account-to-Person Fund transfers
Person-to-Account Fund Transfers
Cash-in (Deposit)
Cash-out (Withdrawal)
Utility Bills Payments
Merchant Payments
Mobile Top-ups
Loan Disbursement
Loan Repayment
Donations
Others
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Comparative Growth Analysis-Branchless Banking
Branchless Banking Snapshots
Key BB Indicators Jun-11 Sep-11 Quarterly
Growth
Total No. of active BB Agents 15,829 17,448 10.23%
Total No. of active BB accounts 236,464 357,598 51.23%
Total BB Deposits as of Date (Million Rs.) 146 187 28.03%
No. of Transactions During the Quarter (in
„000‟) 12,500 15,867 26.93%
Volume of Transactions During the quarter
(Million Rs.) 41,000 58,710 43.20%
Average Size of Transaction Rs. 3,280 3,700 12.81%
Average No. of Transaction Per day 138,889 176,296 26.93%
16,093
18,233
646
260
569
73
10,400
8,861
73
023
2
3,481
Volume Transacted Rs. in million (Jul-Sep 2011) Account-to-Account Fund transfers
Person-to-Person Fund Transfers
Account-to-Person Fund transfers
Person-to-Account Fund Transfers
Cash-in (Deposit)
Cash-out (Withdrawal)
Utility Bills Payments
Merchant Payments
Mobile Top-ups
Loan Disbursement
Loan Repayment
Donations
Others
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Research Design
Population
In this research, the target population was university students, professionals, age
between 20-45 years.
Sample and Data Collection
With respect to data collection, we have chosen the students, employees, professional
and also get references from database of State Bank of Pakistan.
Sample Size:
Sample size taken for the research purpose is 50 respondents. The sample size
comprise of either gender (28 Males & 22 Females)
Tools for Data Collection:
In order to measure the growth and awareness of E-Banking in Pakistan, we have
used the survey techniques. Based on the above mentioned criterion, this research has
distributed 50 questionnaires/statements.
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
15,829
236,464
146 12,50041,000
3,280
138,889
17,448
357,598
187 15,86758,710
3,700
176,296
Jun-11
Sep-11
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Data Collection Procedure:
There are a variety of techniques used for data collection purposes. Often the selection
of technique involves the trade offs. For instance there is a tradeoff between cost and quality
of information obtained. Budget and time constrains also considered in the data collection
process. The data collection procedure adopted by us is the questionnaire technique, which is
the most simplest and appropriate method of gathering information.
Data Analysis
Scaling
A scale is a measure in which a researcher captures the intensity, direction, level or
potency of a variable. For the data analysis, the major technique used by us in the scaling in
which, we give scores to different statements and the scaling criteria is as following.
A statement would be given 1 to 5 rating used in which 1 represents “Strongly
Disagree” and 5 being “Strongly Agree” for positive statements. For negative statements the
numbering order is reversed. As we are having a total of 25 statements in our questionnaire so
the minimum score attained by the questionnaire would be 26 and maximum sore would be
125.
Following are samples of gender, age and occupation.
Sample Size (Gender Wise)
Male Female Total
28 22 50
The sample size consisted of 28 males and 22 females.
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Age
Male Female
20-45 20-45
Both males and females were of the age between 20 and 45.
Occupation
Male Female
Student 15 Student 15
Employed 13 employed 7
Below is Table 1 shows gender wise association with research questions.
Table 1: Gender association with research question
Sr.# Question Gender
Male (28) Female (22)
1. Awareness of E-Banking 24 14
2. E- Banking is useful 24 18
3. Bank provides E- Banking services 24 17
4. Awareness of ATM usage 25 16
5. Use debit card / credit card for online
transactions
21 12
6. Perform E-Banking transactions through
Mobile.
6 7
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7. Access to ATM 21 16
8. Pay bills online 16 14
9. Prefer to walk into a branch for banking
services rather using E-Banking
8 8
10. Satisfied with E-Banking Services 19 9
11. Will use E-Banking in future 22 14
The Table No. 1 shows the number of male and female respondents who said YES in
response to different questions which were asked in the questionnaire.
1. 24 male and 14 females out of a total sample size of 50 responded that they were aware of E-
Banking.
2. 24 male and 14 females participants that they find E-Banking useful.
3. 21 males and 12 females have used debit card or credit card for online transactions.
4. The first important and interesting thing which was observed that very few respondents i.e. 6
males and 7 females had used mobile phones for online transactions.
5. 21 males and 16 females said they had access to ATM.
6. The second interesting this which was observed during this survey was that since this young
generation was more inclined towards technology use and also spends a lot of time online,
very few i.e. 8 males and 8 females responded positively in response to going to a bank
branch to obtain banking services.
7. The opinion of both males and females in using the online banking in future is positive. 22
males and 14 females responded that they will prefer using online banking in future.
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Table 2: Level of Agreement / Disagreement / Neutrality
Awareness of E-Banking
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Total
Male 0 1 1 15 11 28
Female 2 0 5 8 7 22
Table No. 2 shows the level of disagreement, agreement or neutrality of the participants in
particular areas. When it comes to level of agreement of respondents on E-Banking
awareness issue, 26 males and 15 females either agreed or strongly agreed that they were
aware of E-Banking.
Table 3: Level of Agreement / Disagreement / Neutrality
Awareness of E-Banking Risks
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Total
Male 5 3 8 8 4 28
Female 1 6 6 5 4 22
Table No. 3, it has been shown that both males and females express their concerns towards
the security risks of E-Banking. 12 males and 9 females either agreed or strongly agreed that
E-Banking was risky. Some remained neutral because they weren’t aware of what risks E-
Banking carried.
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Table 4: Level of Agreement / Disagreement / Neutrality
Awareness of E-Banking through Mobile
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Total
Male 10 10 4 3 1 28
Female 3 8 4 5 2 22
Table No. 4 shows participant’s aware of E-Banking through a mobile. 20 males and 11
females either disagreed or strongly disagreed with the notion that they had used mobiles for
online transactions. This showed that mobile banking has not flourished in Pakistan yet.
Table 5: Level of Agreement / Disagreement / Neutrality
Awareness of E-Banking by studying it as a subject only
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Total
Male 3 9 6 9 1 28
Female 4 5 9 3 1 22
Table No. 5 shows participant’s awareness of E-Banking by studying it as a subject only. In
this table, we observed a mixed reaction from the participants. Half number of males and half
number of female participants responded that their knowledge of E-Banking was only
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Proceedings of 2nd
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because of studying it as a subject. They not only read it as a subject but also practically
experienced it.
Conclusion And Recommendation
Electronic banking is very useful and it has become today’s need. Our research has
shown that people in generally are aware of the concept of Electronic Banking.
Some participants are account holders of different banks, and they have been
availing the E-Banking facilities provided by the banks.
A few participants also have access to Debit and Credit cards, which they
use for point of sale and online shopping.
Some participants said that bank’s systems are risky and they worry their
online passwords can be stolen.
Majority of participants said, E-Banking is useful and they shall use it in
future.
Banks should ensure that electronic banking is safe and secure for financial
transaction like as traditional banking.
In order to accelerate the pace of E-Banking growth in Pakistan, the SBP should take
the following measures:
The safety and security of the online banking systems/applications should be
enhanced.
All banks should make their customers aware of and educate them regarding
the possible risks associated while going online for banking services.
Pakistan is one of the largest users of cellular phones but awareness
regarding mobile banking is negligible. The government should take steps to
promote mobile banking in Pakistan.
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Proceedings of 2nd
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The ATM infrastructure needs to be strengthened. ATM’s should always be
in proper working conditions.
Use of credit cards can be promoted by lowering the bank’s interest rates
and easy repayment schedules.
Special public awareness programs through media, through corporate social
responsibility, different public activities, donation etc.
Privacy should be maintained, banks should ensure that customer data
provided on the website should not be misused.
Response time should be improved.
Banks/Telco’s should join hands to mitigate the wireless risks.
Banks should take special measures to prevent from hacking and other such
issues.
Introduce effective complaint management units.
Educational institutions ensure that Electronic Banking must be the part of
master program as course to aware the youth for the development.
Shortly, In Pakistan consumers are aware of e-banking products and services. But there is
room to make more awareness to consumer in order to full make of adoption of e-banking in
Pakistan, whereas few consumers are actually using the e-banking products and services.
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References
Abid, H. and Noreen, U. (2006), “Ready to E-bank: An exploratory research on adoption of
e-banking and e-readiness in customers among commercial banks in Pakistan”,
Spider, 31 (2), pp. 1-31.
Daniel, E. (1999), “Provision of electronic banking in the UK and the Republic of Ireland”,
International Journal of Bank Marketing, 17 (2), pp 72-82.
Amor, D. (1999).The E-business Evolution. 2nd edition. New York: Prentice Hall.
Summary of Half Yearly Review, January – June 2011, Payment System Department, State
Bank of Pakistan, www.sbp.org.pk
Branchless Banking Newsletter, July to September, 2011, State bank of Pakistan,
http://sbp.org.pk/publications/BranchlessBankingNewsletter.pdf
Pakistan branchless Banking Conference 2010, State Bank of Pakistan,
http://sbp.org.pk/MFD/PBBC.htm
Branchless Banking Guidelines, State Bank of Pakistan, www.sbp.org.pk