Towards Digital Economy: The Impact of Electronic Banking on Customer Satisfaction among the Pakistan Banking Industry

Towards Digital Economy: The Impact of Electronic Banking on Customer Satisfaction among the Pakistan Banking Industry

Muhammad Zahid (United Bank Ltd. Pakistan, Umarzai Branch, Charsadda, KPK, Pakistan), Muhammad Jehangir (Department of Management Sciences, Abdul Wali Khan University, Mardan, KPK, Pakistan) and Naveed Shahzad (Department of Management Sciences, Qurtaba University, Peshawar, KPK, Pakistan)
Copyright: © 2012 |Pages: 13
DOI: 10.4018/jeei.2012100103
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Abstract

Information and Communication Technologies (ICT) have changed business operation trends. Information systems are considered a valuable asset and have the attention of the strategic and marketing decision floors. Use of information system and ICT in the banking industry have become indispensable, and have replaced traditional operations with electronic banking concepts. Electronic banking has brought many challenges for strategic managers to achieve strategic goals and overall customers’ satisfaction. This research study aims to investigate the impact of electronic banking in the context of IT usage, ease of use, its usefulness and the customer satisfaction among the Pakistan banking industry. Pakistan’s top five commercial banks were selected in five districts of KPK for data collection. Three hundred and three electronic banking customers were interviewed through a questionnaire containing 21 relative questions. The SPSS is used for the analysis, on data collected through the questionnaire. Descriptive analysis, correlation, regression and ANOVA have been computed for the results interpretations. From these results, it was found that the customers strongly agree to use information technology for banking operations, but they believe that the use of electronic banking has problems. The management should focus on its method of use. The customers suggested that the electronic banking operations should be simplified, should be user friendly, should be easy to understand, and thus its usefulness will enhance in achieving highly satisfied customers.
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Electronic Banking Drivers

Automated Teller Machines (ATMs): An automated teller machine (ATM) is a computerized telecommunication device, which provides the customers of a financial institution, with access to financial transactions in a public space, without the need for a human clerk or bank teller.

Telephonic Banking. A service provided by the bank to their customers to generate transactions over a telephonic line. Normally, customers registered telephone or cell numbers are authorized to perform the transactions. Usually, customer is assigned a Telephonic Personal Identification Number (T-Pin). After entering that PIN he is verified and authorized to perform a transaction (Fasan, n.d.).

Internet Banking. Today, bank customers could use internet, such as web sites of the banks like a virtual branch, and you could perform most of the activities, that a customer perform inside the bank premises. Now a customer transfer his funds to others, issue demand drafts, pay their credit card and utility bills, purchase mobile prepay cards and even shop directly from his account using bank websites.

Technology has restyled the services of the banking industry and most of the products of the banking industry are offered via internet (Ndubisi et al., 2003).

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