E Banking Case Study

1.1 INTRODUCTION

When Internet has entered into our daily life, the most dimensions of our lives such as education, communication, business, etc, were overshadowed by this novel phenomenon.

One of these dimensions is to handle banking affairs through the Internet (Shirali &

Shahreza, 2007). According to (Richard Nyangosi & Arora, Sumanjeet Singh, 2009) banking through electronic channels has gained much popularity in recent years. This system, popularly known as 'e-banking', provides faster delivery of banking services to a wide range of customers. Information technology is becoming an important factor in the future development of financial services industry, and especially in banking industry

(Nami. M. R, 2009). In current business environments,

In the new era there is a need of bank customers to get improved electronic banking services and also better relations with the bankers. It is also the need of time to provide efficient services/products to the customers. In Pakistan however, such kind of electronic banking has started recently. Online banking system present to their consumers a set of information-related benefits that favors to adopt e-banking, including the facility for the customers to control their bank accounts at any time and any place, and to access information content for making investment and financing decisions (Howcroft B, 2002).

Due to the competition among the banks in Pakistan, the banks want to provide the services which are more efficient, rapid and enhanced the banking system. Therefore, the objective of e-banking is to create such working environment where customers can easily find about the information they require for performing financial transactions.

E- Banking System in Pakistan

Thesis for the Master‟s degree in Business Administration, Spring-2010

Blekinge Institute of Technology, Ronneby, SWEDEN

 We can use a prepaid smart card embedded for our daily purchasing like pay phone, toll expenses, daily college expense or any bookstores.

E- Banking System in Pakistan

Thesis for the Master‟s degree in Business Administration, Spring-2010

Blekinge Institute of Technology, Ronneby, SWEDEN

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1.2 BACKGROUND

The increasingly change in worldwide competitiveness in commercial behaviors has improved the volume of bank in the world. It has produced additional banking knowledge and also improved customer demand of services given by banks. This revolution has set a motion in the banking sector for the provision of a payment system that is compatible with the demands of the electronic market (Balachandher, 2001). On the behalf of increased competition, many banks and organization did not only reduce their costs but they have also increased their products. Technology has changed the preconditions for service delivery, dramatically in recent years (Fredriksson, 2003).

The banks are the financial institutions to provide consumers savings services, money transmission services and credit services (Sinkey, 1990). In other terms, banks are concerned with safe transaction and collection of management functions. In this