ABSTRACT

Internet banking has become the latest delivery channel for banking
services due to the backlash from globalization and liberalization of
financial services. This study revealed that the banks have achieved
considerable success as far as awareness is concerned as a vast majority
of the respondents reported that they were aware of Internet banking.
Although awareness is moderate, unavailability is high, this has not
translated into actual use as only 24.4% have had some Internet banking
experience. Using the discriminates analysis it was found that Internet
banking users had more prior Internet experience, had positive views on
ease of use, were more aware of the Internet banking services and
benefits and also had less security concerns as compared to the non-users
of Internet banking.
 INTRODUCTION

History of Computer:

A computer is a machine that manipulates data according to a list of

instructions. The first devices that resemble modern computers date to the mid-20th
century (around 1940 - 1945), although the computer concept and various machines
similar to computers existed earlier. Early electronic computers were the size of a large
room, consuming as much power as several hundred modern personal computers.
Modern computers are based on tiny integrated circuits and are millions to billions of
times more capable while occupying a fraction of the space.

Today, simple computers may be made small enough to fit into a wristwatch and be
powered from a watch battery. Personal computers in various forms are icons of the
Information Age and are what most people think of as "a computer"; however, the most
common form of computer in use today is the embedded computer. Embedded computers
are small, simple devices that are used to control other devices — for example; they may
be found in machines ranging from fighter aircraft to industrial robots, digital cameras,
and children's toys.

Introduction to Internet:

The Internet is a worldwide, publicly accessible series of interconnected computer

networks that transmit data by packet switching using the standard Internet Protocol (IP).
It is a "network of networks" that consists of millions of smaller domestic, academic,
business, and government networks, which together carry various information and
services, such as electronic mail, online chat, file transfer, and the interlinked web pages
and other resources of the World Wide Web (WWW).

Internet access:

Common methods of home access include dial-up, landline broadband (over coaxial
cable, fiber optic or copper wires), and satellite and 3G technology cell phones.
Public places to use the Internet include libraries and Internet cafes, where computers
with Internet connections are available. There are also Internet access points in many
public places such as airport halls and coffee shops, in some cases just for brief use while
standing. Various terms are used, such as "public Internet kiosk", "public access
terminal", and "Web payphone". Many hotels now also have public terminals, though
these are usually fee-based. These terminals are widely accessed for various usages like
ticket booking, bank deposit, online payment etc. Wi-Fi provides wireless access to
computer networks, and therefore can do so to the Internet itself. Hotspots providing
such access include Wi-Fi cafes, where would-be users need to bring their own wireless-
enabled devices such as a laptop or PDA. These services may be free to all, free to
customers only, or fee-based. A hotspot need not be limited to a confined location. A
whole campus or park, or even an entire city can be enabled. Grassroots efforts have led
to wireless community networks.

High-end mobile phones such as smart phones generally come with Internet access
through the phone network. Web browsers such as Opera are available on these advanced
handsets, which can also run a wide variety of other Internet software. More mobile
phones have Internet access than PCs, though this is not as widely used. An Internet
access provider and protocol matrix differentiates the methods used to get online.

Internet Service Providers (ISP):

Here is list of some Internet service providers:

• Ak Net
• http://www.ak.net.pk
• Apollo Online
• http://www.apollo.net.pk
• Asia Online
• http://www.aol.net.pk
• Aster Net
• http://www.aster.com.pk
• Best Net
• http://www.best.net.pk
• Brain Net
• http://www.brain.net.pk
• Breeze Net
• http://www.breeze.net.pk
• CompuNet Online
• http://www.compol.com
• COMSATS
• http://www.comsats.net.pk
• CubeXS
• http://www.cubexs.net.pk
• CyberAccess
• http://www.cyberaccess.com.pk
• CyberNet
• http://www.cyber.net.pk
• Digicom
• http://www.digicom.net.pk
• Fascom
• http://www.fascom.com
• Gerry's Net
• http://www.gerrys.net
• GlobalNet
• http://www.global.net.pk
• IBM
• http://www.ibm.net
• ICNS
• http://www.icns.com.pk
• Info Net
• http://www.inet.com.pk
• Infolink
• http://www.infolink.net.pk
• MegaNet
• http://www.mega.net.pk
• MS Net
• http://www.ms.net.pk

• Net 21
• http://www.net21pk.com
• NetAccess
• http://www.netxs.com.pk
• NetAsia
• http://www.netasia.com.pk
• Nexlinx
• http://www.nexlinx.net.pk
• Nigsun Online
• http://www.compcare.com.pk
• Pak Net
• http://www.paknet.ptc.pk
• Pakistan Online
• http://www.pol.com.pk
 • Pienet Global
• http://www.pienet.net
• RoboNet Int'L
• http://www.robonets.com
• SAT COM
• http://www.sat.com.pk
• SHOA
• http://www.shoa.net
• Sky Net
• http://www.netcard.net.pk
• Space Net
• http://www.space.net.pk
• SPARCOM
• http://www.sparcom.net.pk
• Super Net
• http://www.super.net.pk
• The Flash Net
• http://www.theflash.net
• Top Net
• http://www.top.net.pk
• World Online
• http://www.wol.net.pk
• WorldTel Internet
• http://www.wtmeca.net
• Zoooom Net
• http://www.zoooom.net

ISP in Multan:

In Multan

• Super Net
• Cyber Net
• Pak Net
• Wol Net
• Dancom
• Comsats

are available.

Electronic Banking:
Pros and cons of e-banking:
The biggest plus to banking online is the price. Because Internet-only banks don't
have the expense of maintaining hundreds of local branches, their overall cost of doing
business is lower than it is for their traditional counterparts. They pass the savings on to
consumers in two main ways: higher interest and lower fees.
Another big advantage is that you'll have 24-hour access to your account, for free
Deposits:
Although you may regularly visit your bank branch to make deposits, that's not an
option with Internet-only banks. If your employer doesn't offer direct deposit --
electronically wiring your paycheck to your bank -- you'll have to use snail mail (the
regular old U.S. Postal Service) to get money into your account.
If you live paycheck to paycheck, this might be tough for you. You'll have to wait about
five business days for your check to get to your account and then another few days for the
check to clear. So if you don't have extra money in your account as a cushion, you'll have
to factor in the extra time it will take before new deposits are available. And if your check
ever gets lost in the mail, you could be out of luck.
ATM availability:
Check the ATM availability offered by the Internet-only bank you're considering.
As you've probably experienced, many banks charge fees to no customers who use their
ATMs. Because Internet-only banks don't have their own ATM network, you'll be charged
no customer fees by the banks who’s ATMs you use.
Internet-only banks are trying to offset this negative by reimbursing account holders for
up to four ATM no customer fees per month. That means that even though you'll be
charged the no customer fee, the Internet-only bank will give you your money back.
Internet-only banks understand these problems, and many are taking steps to overcome
them. For example, they're negotiating with large ATM networks to let Internet-only
customers make deposits at local ATMs and have those deposits treated just as if they
were made at a local bank. Ask the Internet-only bank you're interested in what they're
doing to fix the issues you're most concerned about. You may find you like the answers
you're given.

To research which Internet bank best suits your banking style, visit Bankrate.com. Don't
let your bank get the best of you and your wallet. Instead, flip on your computer and treat
yourself to a little more cash
The SMS Banking channel also acts as the bank’s means of alerting its
customers, especially in an emergency situation; e.g. when there is an ATM fraud
happening in the region, the bank can push a mass alert (although not subscribed by all
customers) or automatically alert on an individual basis when a predefined ‘abnormal’
transaction happens on a customer’s account using the ATM or credit card. This
capability mitigates the risk of fraud going unnoticed for a long time and increases
customer confidence in the bank’s information systems.
The benefits of electronic transacting have an increasingly important role to
play in assisting the small to medium businesses (SMB) sector to run its operations more
effectively as well as at a lower cost than traditional financial management mechanisms -
many of which still revolve around the company chequebook. Addressing this
requirement, most banks have introduced systems that are specifically tailored to the
needs of the SMB.
Perhaps oddly, electronic banking systems have enjoyed particularly good
acceptance at what can be considered to be opposite ends of the market - large
corporations and private individuals. Large corporations are familiar with the use of
electronic payment systems such as magtape and electronic data interchange (EDI), while
most individuals are familiar with the Internet and satisfied that the security protecting
online banking systems is sufficient to protect their funds.
But the SMB environment tends to lag somewhat in the adoption of Internet
banking solutions.
Most large corporations have invested in software applications such as
Enterprise Resource Planning systems, Supply Chain Management systems, Customer
Relationship Management systems and more to achieve the benefits associated with
process automation. They are also familiar with the benefits of vendor collaboration to
identify solutions that help contain costs, enhance process efficiencies and improve
productivity. This was done by granting mutual access to business systems, through
interfacing with supplier - such as the ERP system 'talking to' the bank's electronic
banking system - to automation aspects of cash management and treasury.
However, many SMBs are under the impression that such software applications
are too complex and costly for their business requirements, or are not sufficiently
confident in the security of online systems.
The history of electronic banking systems provided by banks saw these
traditionally focused at the money management needs of large corporate. As such, many
SMB owners perceive that Internet banking facilities are directed predominantly at larger
companies. However, most banking institutions have introduced systems that are
specifically directed at the requirements of the SMB, both in terms of functionality and
pricing. SMBs that are used to performing simple banking activities, for example viewing
account balances and transferring funds between accounts via ATM or phone-banking,
can use a multi-user Internet banking platform to perform these banking activities and
more via the Internet.
At the click of a mouse, SMBs can have easy access to their most updated and
detailed financial information anywhere in the world, at anytime. Using such systems
also allows the SMB to improve the costs of managing finances - having immediate real-
time access to exact available cash positions in their bank accounts supports planning and
decision-making, thus resulting in better control over their cash flow.
Additionally, human resources is another significant cost centre for most
SMBs. With the use of Internet banking, SMBs can cut down on manual processes and
deploy staff to do more value-added work. Internet banking allows the SMB to make
local or overseas payments to third parties, apply for letters of credit, contract foreign
exchange rates and more, improving productivity and saving time by obviating the need
to make a trip to the bank branch, stand in a queue and wait for transactions to be
processed. It also introduces automation to the payment process - once a beneficiary is
created on the system, it is a matter of 'point and click' to effect payment.
Contrast these benefits to a cheque-based system, which requires writing the
cheque, then delivery or deposit by a driver, or collection by the supplier - an expensive,
cumbersome, time- consuming process.
The benefits of using Internet banking systems become even more apparent when it
comes to processing urgent and time critical transactions - employees no longer need to
rush documents to the bank only to find out that they have missed the cut-off time.

The evolution of the services offered by most banks means SMBs should see the
bank as far more than just a provider of finance and money handling services. Most
leading banks have become a centre from which businesses can source a variety of
service offerings and options that can help improve business management. And banks are
usually forerunners in technology adoption, such as the implementation of e-business
strategies and solutions that help customers improve their financial position. They are
also keen to assist their customers to move into Internet-based financial activities. SMBs
should therefore make their bankers their financial and business partners in accessing
appropriate online banking solutions that can provide better financial management while
also offering a lower cost of banking.

Types of e-banking:
Following are the types of e-banking
• Internet banking
• Mobile banking
• ATM
• Telephone banking

Internet Banking:

Internet banking refers to the use of the Internet as a remote delivery channel for
banking services. Such services include traditional ones, such as opening a deposit
account or transferring funds, among different accounts, and new banking services, such
as electronic bill payment, allowing customers to receive and pay bills via a bank’s
website. Banks offer Internet banking in two main ways. An established bank with
physical offices can establish a website and offer Internet banking to its customers in
addition to its traditional delivery channels. A second alternative is to establish a
“virtual,” “branchless,” or “Internet-only” bank. The computer server that lies at the
heart of a virtual bank may be located in an office that serves as the legal address of such
a bank, or at some other location. Virtual banks may offer their customers the ability to
make deposits and withdraw funds via ATMs or other remote delivery channels owned by
other institutions.

Features:
Internet banking has following features

Time and Space:

By eliminating the limitations of time and distance, electronic financial
transactions can make cross-border transactions easier and thus make it possible to
provide services to customers on a global scale. In effect, online finance may
eventually lead to complete globalization of financial services, making the national
borders irrelevant.
Electronic financial transactions:
Electronic financial transactions have helped create new services such as the
“virtual financial site” that includes services crossing the traditional borders
between financial services as well as “aggregation” that allows consumers to obtain
consolidated information about their financial accounts in one place.

o Electronic bill presentment and payment - EBPP

o Funds transfer between a customer's own checking and savings accounts,
or to another customer's account
o Investment purchase or sale
o Loan applications and transactions, such as repayments

Security:
Since electronic financial transactions, especially those in online retail
banking, are being conducted on open networks centered on the Internet, many
challenges arise in terms of transaction security, consumer protection and privacy.
The existing systems of financial regulation and supervision are being amended to
reflect the changes in technology.
 Online banking user interfaces are secure sites and traffic of all information -
including the password - is encrypted, making it next to impossible for a third party
to obtain or modify information after it is sent. However, encryption alone does not
rule out the possibility of hackers gaining access to vulnerable home PCs and
intercepting the password as it is typed in (keystroke logging). There is also the
danger of password cracking and physical theft of passwords written down by
careless users.

Many online banking services therefore impose a second layer of security.

Strategies vary, but a common method is the use of transaction numbers, or TANs,
which are essentially single use passwords. Another strategy is the use of two
passwords, only random parts of which are entered at the start of every online
banking session. This is however slightly less secure than the TAN alternative and
more inconvenient for the user. A third option is providing customers with security
token devices capable of generating single use passwords unique to the customer's
token (this is called two-factor authentication or 2FA). Another option is using
digital certificates, which digitally sign or authenticate the transactions, by linking
them to the physical device (e.g. computer, mobile phone, etc). Other banks have
responded not with security tokens or digital certificates, but by setting up a
combination of controls that recognize a customer's computer, ask additional
challenge questions for risky behavior, and monitor for fraud ulent behavior

Electronic Fund Transfer:

Electronic funds transfer or EFT refers to the computer-based systems used to

perform financial transactions electronically. The term is used for a number of
different concepts:

• cardholder-initiated transactions, where a cardholder makes use of a payment card

• electronic payments by businesses, including salary payments
• electronic check (or cheque) clearing
Card Based EFT:

EFT may be initiated by a cardholder when a payment card such as a credit card
or debit card is used. This may take place at an automated teller machine (ATM)
or point of sale (EFTPOS), or when the card is not present, which covers cards
used for mail order, telephone order and internet purchases.

Transaction types

A number of transaction types may be performed, including the following:

• Sale: where the cardholder pays for goods or service.

• Refund: where a merchant refunds an earlier payment made by a cardholder.
• Withdrawal: the cardholder withdraws funds from their account, e.g. from an
ATM. The term Cash Advance may also be used, typically when the funds are
advanced by a merchant rather than at an ATM.
• Deposit: where a cardholder deposits funds to their own account (typically at an
ATM).
• Cashback: where a cardholder withdraws funds from their own account at the
same time as making a purchase.
• Inter-account transfer: transferring funds between linked accounts belonging to
the same cardholder
• Payment: transferring funds to a third party account
• Inquiry: a transaction without financial impact, for instance balance inquiry,
available funds inquiry, linked accounts inquiry, or request for a statement of
recent transactions on the account.
• Administrative: this covers a variety of non-financial transactions including PIN
change.

The transaction types offered depend on the terminal. An ATM would offer
different transactions from a POS terminal, for instance
 Online banking puts the power of banking into the hands of the customer and allows
the customers to self-service themselves with all their banking needs, just as
customers have become used to getting money from an ATM instead of going to the
cash desk in the bank. With this online service, customers can view their account
details, review their account history, transfer funds, order checks, pay bills, re-order
checks and get in touch with the customer care department of the bank. In most
cases, there is no special software to install other than a web browser and many
banks do not charge for this service

Mobile Banking:

Mobile banking is a term used for performing balance checks, account

transactions, payments etc. via a mobile device such as a mobile phone. Mobile banking
today (2008) is most often performed via SMS or the Mobile Internet but can also use
special programs downloaded to the mobile device.

Mobile Banking can be said to consist of three inter-related concepts:

• Mobile Accounting
• Mobile Brokerage
• Mobile Financial Information Services

Most services in the categories designated Accounting and Brokerage are transaction-
based. The non-transaction-based services of an informational nature are however
essential for conducting transactions The accounting and brokerage services are therefore
offered invariably in combination with information services. Information services, on the
other hand, may be offered as an independent module.

Trends in mobile banking:

The advent of the Internet has revolutionized the way the financial services
industry conducts business, empowering organizations with new business models and
new ways to offer 24x7 accessibility to their customers. The ability to offer financial
transactions online has also created new players in the financial services industry, such as
online banks, online brokers and wealth managers who offer personalized services,
although such players still account for a tiny percentage of the industry. Over the last few
years, the mobile and wireless market has been one of the fastest growing markets in the
world and it is still growing at a rapid pace. According to the GSM Association and
Ovum, the number of mobile subscribers exceeded 2 billion in September 2005, and now
exceeds 2.5 billion (of which more than 2 billion are GSM).According to a study by
financial consultancy Celent, 35% of online banking households will be using mobile
banking by 2010, up from less than 1% today. Upwards of 70% of bank center call
volume is projected to come from mobile phones. Mobile banking will eventually allow
users to make payments at the physical point of sale. "Mobile contact less payments” will
make up 10% of the contact less market by 2010.Many believe that mobile users have
just started to fully utilize the data capabilities in their mobile phones. In Asian countries
like India, China, Indonesia and Philippines, where mobile infrastructure is
comparatively better than the fixed-line infrastructure, and in European countries, where
mobile phone penetration is very high (at least 80% of consumers use a mobile phone),
mobile banking is likely to appeal even more. This opens up huge markets for financial
institutions interested in offering value added services. .Mobile devices, especially smart
phones, are the most promising way to reach the masses and to create “stickiness” among
current customers, due to their ability to provide services anytime, anywhere, high rate of
penetration and potential to grow.

Features:

Mobile banking can offer services such as the following:

• Account Information

Alerts on account activity or passing of set thresholds

1. Monitoring of term deposits

2. Access to loan statements
3. Access to card statements
 4. Mutual funds / equity statements
5. Insurance policy management
6. Pension plan management
7. Status on cheque, stop payment on cheque

Payments & Transfers

1. Domestic and international fund transfers

2. Micro-payment handling
3. Mobile recharging
4. Commercial payment processing
5. Bill payment processing
6. Peer to Peer payments

Investments

1. Portfolio management services

2. Real-time stock quotes
3. Personalized alerts and notifications on security prices

Support

1. Status of requests for credit, including mortgage approval, and insurance coverage
2. Check (cheque) book and card requests
3. Exchange of data messages and email, including complaint submission and
tracking
4. ] ATM Location

Content Services

1. General information such as weather updates, news

2. Loyalty-related offers
3. Location-based services
Based on a survey conducted by Forrester, mobile banking will be attractive mainly to the
younger, more "tech-savvy" customer segment. A third of mobile phone users say that
they may consider performing some kind of financial transaction through their mobile
phone. But most of the users are interested in performing basic transactions such as
querying for account balance and making bill payment.

ATM:
An automated teller machine (ATM) is a computerized telecommunications
device that 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. On most
modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic
stripe or a plastic smartcard with a chip, that contains a unique card number and some
security information. Security is provided by the customer entering a personal
identification number (PIN).

Mechanical cash dispenser was developed and built by Luther George Simian
and installed in 1939 in New York City by the City Bank of New York, but removed after
6 months due to the lack of customer acceptance.

The ATM got smaller, faster and easier over the years. Thereafter, the history of
ATMs paused for over 25 years, until De La Rue developed the first electronic ATM,
which was installed first in Enfield Town in North London on 27 June 1967 by Barclays
Bank.. This instance of the invention is credited to John Shepherd-Barron, although
various other engineers were awarded patents for related technologies at the time.
Shepherd-Barron was awarded an OBE in the 2005 New Year's Honors List. The first
person to use the machine was Reg Varney of "On the Buses" fame, a British Television
programme from the 1960s. The first ATMs accepted only a single-use token or voucher,
which was retained by the machine. These worked on various principles including
radiation and low-coercively magnetism that was wiped by the card reader to make fraud
more difficult. The idea of a PIN stored on the card was developed by the British
engineer John Rose in 1965.
 ATMs first came into wide UK use in 1973; the IBM 2984 was designed at the
request of Lloyds Bank. The 2984 CIT (Cash Issuing Terminal) was the first true Cash
point, similar in function to today's machines; Cash point is still a registered trademark of
Lloyds TSB in the U.K. All were online and issued a variable amount which was
immediately deducted from the account. A small number of 2984s were supplied to a
USA bank.

Using an ATM, customers can access their bank accounts in order to make cash
withdrawals (or credit card cash advances) and check their account balances. ATMs are
known by various casual terms including automated banking machine, money machine,
cash machine, hole-in-the-wall.

Telephone banking:

The Enhanced Telephone is a telephone developed by Citibank in the late 1980s

for customers to do banking and other financial transactions from their home. The official
launch date was February 26-27, 1990.The first version of the Enhanced Telephone, the
99A model, was beige and featured a monochrome CRT screen. Because of its chunky
appearance, several developers dubbed it the "sawed-off ski boot. The physical hardware
was manufactured by Transaction Technologies Incorporated (TTI).The second version of
the Enhanced Telephone, the P100 model, was manufactured by Philips Electronics and
featured an LCD screen and sleeker styling. The font was developed by Bit stream Inc.
Software for the Enhanced Telephone was written in a proprietary language called HAL
(Home Application Language).The Enhanced Telephone ultimately failed to become a
viable product because by the time it was introduced, home banking via PCs was
becoming more common. As the World Wide Web became popular in the early 1990s, the
Enhanced Telephone was rendered obsolete. The Philips P100 phone lived on and to this
day variations of it are used for other applications

Online lenders make loans to consumers via computer websites, online. Online lenders
generally provide loan information, application forms, email or instant message
assistance right on their website. The online applications are generally transmitted over
an encrypted web page for security. Ideally an online lender will provide a telephone
number prominently offering offline assistance to consumers also

Telephone banking is a service provided by a financial institution which allows its

customers to perform transactions over the telephone. Most telephone banking uses an
automated phone answering system with phone keypad response or voice recognition
capability. To guarantee security, the customer must first authenticate through a numeric
or verbal password or through security questions asked by a live representative (see
below). With the obvious exception of cash withdrawals and deposits, it offers virtually
all the features of an automated teller machine: account balance information and list of
latest transactions, electronic bill payments, funds transfers between a customer's
accounts, etc. Usually, customers can also speak to a live representative located in a call
centre or a branch, although this feature is not guaranteed to be offered 24/7. In addition
to the self-service transactions listed earlier, telephone banking representatives are
usually trained to do what was traditionally available only at the branch: loan
applications, investment purchases and redemptions, chequebook orders, debit card
replacements, change of address, etc. Banks which operate mostly or exclusively by
telephone are known as phone bank.

Difference b/w traditional and e banking:

Internet banking works much like traditional banking. The primary difference is
you are accessing your account and information, making payments and reconciling
statements using your computer rather than paper or the phone to complete transactions.
Instead of going down to your local branch office when you bank online you can
accomplish multiple tasks at once with the click of a button.
Online banking is rapidly becoming more and more popular as consumers recognize the
advantages online banking has to offer. For one most banks charge fewer fees if you take
advantage of their online banking services. You can also stop receiving paper statements
if you like in many cases and conduct 95% of your business over the Web when you take
advantage of Internet banking.

What Internet Banks Do?

What to Internet Banks do? The same things traditional banks do. They hold onto our
money and lend it out to others respectively. The manage loans and help us keep track of
our finances. Chances are if you own a bank account at a traditional bank they offer some
type of Internet banking or online services. The next time you stop into your branch
office you should ask them about online banking. You may find once you start you have
no desire to go back to traditional banking.

For those that have a hard time keeping track of paper statements, Internet banking is a
life saver. Internet banking is also advantageous for frequent travelers that need to keep a
close eye on their finances from abroad.
 Literature Review

Case Study:

Analyzing the Factors that Influence the Adoption

of Internet Banking in Mauritius
Kesseven Padachi, Sawkuk Rojid, and Boopen Seetanah
School of Public Policy & Management, University of
Technology, Mauritius, Pointes-Aux-Sables, Mauritius
kpadachi@utm.intnet.mu; sawkutrojid@yahoo.com;
b.seetanah@utm.intnet.mu

Conclusion:

This study investigated the factors that influence the adoption of internet
banking for the case of
the emerging African economy of Mauritius. Mauritius provides a good case
study as the country
is actually one of the best performers of the continent and moreover has a
relatively well developed financial system and communication technology as
well. Specifically this work analyzed in the first instance the most widely use
internet banking services and subsequently investigated the relative
importance of elements such as accessibility and cost of computers and
internet, customers reluctance, awareness of the service, security of internet
banking transactions, convenience and ease of use influence the usage of
Internet banking.
Using survey analysis, results shows that the mostly used services are inter
account transfer,
payment to other personal account, transfer to credit card account, recharge
mobile phones, standing order transactions, savings, current and fixed
deposit account application and debit/ credit card. The results are confirmed
by the use of t-tests. Comparing demographic variables of the internet
banking users to the non-internet banking users, the analysis shows that
there is no
significant difference between the two groups of users, for the variable age
group and the education level of the respondents. This is however not the
case for the mean monthly income.
Using factor analysis to identify the factors affecting the adoption of internet
banking in Mauritius we found that the most significant factor is ease of use
and that other important elements are reluctance to change, trust and
relationship in banker, cost of computers, Internet accessibility, convenience
of use and security concerns.
Further analysis using cross tabulations relating selected factors and usage of
internet banking
facilities detected the presence of important statistical relationship between
awareness, access to
Internet facility, length of banking relationship, people working in the Internet
banking/finance
sector, education level in the category ‘post graduate’ and also income group
with the usage of
internet banking.
The results will have important implications and is believed to be very helpful
for the Mauritian
banking sector and also for the government since both will be aware of the
relatively important
elements that should be taken into account to formulate appropriate
strategies, foster this service
and thus reaping out its benefits. While this exploratory research has
revealed some interesting
results, one should be careful on some of its limitations related essentially to
its sample size.
Although we believe that this study is quite deep, we still believe that it can
be further extended
to include more respondents from different sectors and age groups to make it
more realistic and
more reliable from the perspective of policy analysis. Moreover, analysis can
be made for different
age groups and possible people working in different sectors to capture the
micro details of
Internet banking. There exist in the literature similar works on different
countries. Perhaps it
might be interesting to survey these studies and make a comparison to see
whether there exist
major differences in different countries. Finally a regression analysis can be
performed to find out
the main determinants affecting Internet banking in Mauritius.

Research Design
Steps involved in Research Process:
1) Defining the problem:
E-banking ( Electronic Banking ) `is the most growing field of today. E-banking is
well established and is being used heavily throughout the world. But in our city
Multan it is not that much popular. People are sill unaware of the facilities provided
by banks electronically or there may be some faults in the services provided by the
banks or there could be some other reasons. The point of focus is that e-banking is
not much popular in Multan. People are not enjoying the great facilities of e-
banking. Majority of population Is using old, traditional way of banking. They feel
it more convenient and reliable by going to banks themselves and made their
payments or depositing cash or having some withdrawals etc.
The question is where the problem exists, it can be
• Unawareness
• Hesitation to new technology
• Unavailability of resources
• Difficulty in understanding the terminologies
• Users expect more etc.
Problem Statement:
“Reason behind less popularity of e-banking in
Multan.”

2) Planning a Research Design:

Research design is the master plan specifying the methods and procedures for
collecting and analyzing the needed information. There are four types of
research design,
• Survey ( Interview, Questionnaire)
• Experiment (Laboratory, Field)
• Secondary Data
• Observation
 We have chosen survey, survey is a research technique in which information is
gathered from a sample of people using a questionnaire or by conducting
interviews.
We have surveyed different banks, users and nonusers of e-banking, to get
information about the actual reason behind less popularity of e-banking in
Multan. We have used questionnaire and also conducted interviews to fulfill
our purpose. We use questionnaire for users and non users of e-banking and
conducted interview of employees of banks.
Reason:
We have used questionnaire because
• Questionnaires are preplanned (structured).
• Provide accurate data.
• Provide concise and appropriate information.
• Good respondent cooperation.
• Data analysis is easy.
• Low item no response.

We have conducted interviews because

• Interviews provide versatility of questioning.

• Provide special features like visual material etc.

• Degree of interviewer influence on answers is high.

• Respondent cooperation is excellent.

• Speed of data collection is good.

• Item non response rate is low.

3) Planning a Sample:
We have selected a sample size of 100, In which 20 are
employees, 40 users and 40 non users. We have visited 10
banks in different areas of Multan.
4) Data Collection:

The data we have collected has both qualitative and quantitative

significance. Our questionnaire contained close ended questions mostly.
We have visited each bank and conducted interviews to get appropriate
information about the views and experiments of employees of banks
about low popularity of e-banking. They provided us with trend toward
e-banking in Multan. Questionnaires provided us very accurate and to the
point views of users and non users toward e-banking.

5) Data analysis and conclusion:

To analyze the data we have uses SPSS software, and have find the
conclusions carefully from that information.

6) Report preparation:

We have prepared report very carefully by using MS Word. We have

written each and evey thing without any ambiguity. Every point is mirror
clear.
 Introduction of Banks

Askari Bank
Askari Bank Limited
Type Private
Founded October 09, 1991
Headquarters Rawalpindi, Pakistan
Lt. Gen. Waseem Ahmed Ashraf, Chairman
Key people & CEO
M. R. Mehkari (Acting)
Industry Money Center Banks
Products Banking
Revenue ▲Rs 5.453 billion PKR (2005)
Net income ▲Rs 2.022 billion PKR (2005)
Total assets Rs. 145.1 billion PKR (2005)
Employees 2,754 (2005)
Website www.askaribank.com.pk

Askari Bank Ltd (formerly Askari Commercial Bank) was incorporated in Pakistan on
October 9, 1991, as a Public Limited Company. It started its operations during April 1,
1992. The bank principally deals with mainly banking, as defined in the Banking
Companies Ordinance, 1962. The Bank is listed on the Karachi, Lahore & Islamabad
Stock Exchanges and its shares are currently the highest quoted from among the new
private sector banks in Pakistan.

Askari Bank has expanded into a nation wide presence of 136 branches, and an offshore
banking Unit in Bahrain. A shared network of over 1,100 online ATMs covering all major
cities in Pakistan supports the delivery channels for customer service. As on December
31, 2005, the bank had equity of PKR 8.6 billion and total assets of PKR 145.1 billion,
with over 600,000 banking customers, serviced by our 2,754 employees.
Mission:

To be the leading private sector bank in Pakistan with an international presence,

delivering quality service through innovative technology and effective human resource
management in a modern and progressive organizational culture of meritocracy,
maintaining high ethical and professional standards, while providing enhanced value to
all our stake-holders, and contributing to society.

Internet banking:

Askari Bank has also introduced online banking. Customers are able to view their bank
information and use their accounts for money transfer and use other features.

• Board of directors

Lt. Gen. Farooq Ahmed Khan Gurmani - Chairman

• Lt. Gen. Waseem Ahmed Ashraf - Chairman

• Lt. Gen. (R) Zarrar Azim - Chairman Executive Committee
• Mr. M.R Mehkari - Acting President & Chief Executive
• Brig (R) Muhammad Shiraz Baig - Director
• Brig (R) Asmat Ullah Khan Niazi - Director
• Brig (R) Muhammad Bashir Baz - Director
• Brig (R) Shaukat Mahmood Chaudhari - Director
• Mr. Zafar Alam Khan Sumbal - Director
• Mr. Kashif Mateen Ansari - Director
• Mr. Muhammad Najam Ali - Director
• Mr. Muhammad Afzal Munif - Director
• Mr. Tariq lqbal Khan - Director (NIT Nominee)

.
 Bank Alfalah

Bank Alfalah Limited

Type Private
Founded Karachi
Headquarters Principal Office, Karachi Pakistan
H.E. Sheikh Hamdan Bin Mubarak Al
Key people
Nahayan (Chairman)
Banking
Industry
Capital Markets
Loans, Credit Cards, Savings, Consumer
Products
Banking etc.
Revenue ▲PKR 25.783 Billion (2007)
Net income ▲PKR 3.130 Billion (2007)
Website www.bankalfalah.com

Bank Alfalah Limited is a private bank in Pakistan owned by the Abu Dhabi Group.
Bank Alfalah was incorporated on June 21, 1997 as a public limited company under the
Companies Ordinance 1984. Its banking operations commenced from November 1, 1997.
The bank is engaged in commercial banking and related services as defined in the
Banking companies ordinance, 1962.

History

Bank Alfalah Limited was launched on June 21, 1997 as a public limited company
under the Companies Ordinance 1984. The bank commenced its operations on November
1, 1997. The bank introduced commercial banking and related services as defined in the
Banking companies ordinance, 1962.

After a few years, the bank introduced its new identity of H.C.E.B after the privatization
in 1997. The management of the bank had implemented strategies and policies so the
bank would become a major player in the market. With a partnership with the Abu Dhabi
Group the position of the bank became stronger which allowed the bank to invest more in
revolutionary technology to increase its range of products and services.
Mission statement:

To develop and deliver the most innovative products, manage customer experience,
deliever quality service that contribute to brand strength, develop a competitive
advantage and enhance profitabilty, thus providing value to the stakeholders of the bank.

Branches:

The bank is currently operating through 195 branches in 74 cities, with the
registered office at B.A.Building, I.I.Chundrigar, Karachi. Some of the main branches are
located in all of the major cities including: Lahore, Kasur, Islamabad, Gawadar,
Peshawar, Faisalabad, Quetta, D.I.Khan, Rawalpindi, Sargodha, Sukkur, Sialkot, Multan,
Murree, Attock District, Gujranwala etc. .

Habib Bank Ltd.

HBL
Type Public Limited Company
Founded Bombay (now Mumbai), in 1941.
Headquarters Habib Bank Plaza, Karachi,
Banking
Industry
Capital Markets
Habib
Loans, Credit Cards, Savings, Consumer
Bank Products
Banking etc.
Revenue ▲PKR 50.481 bn (USD 814.2 mln) – 2007
Net income ▲PKR 10.084 bn (USD 162.6 mln) - 2007
Website www.habibbankltd.com
Limited (commonly referred to as "HBL") (Urdu: ‫)حَبيب بينك‬, headquartered in Habib
Bank Plaza, Karachi, Sindh, is the largest bank in Pakistan. The bank has a network of
1425 branches in Pakistan and 55 branches worldwide. It has a domestic market share of
over 40%. It continues to dominate the commercial banking sector with a major market
share in inward foreign remittances (55%) and loans to small industries, traders and
farmers. Overseas, it has operations in the following countries:

Mission

To be recognized as the leading financial institution of Pakistan and a dynamic

international bank in the emerging markets, providing our customers with a premium set
of innovative products and services, and granting superior value to our stakeholders –
shareholders, customers and employees.

History

The branches of Habib Bank in Pakistan

• 1941 Mohammed Ali Jinnah, Pakistan's founding father, realized the importance
of financial intermediation while he was campaigning for the creation of a
separate homeland for the Muslims of India. He persuaded the Habib family to
establish a commercial bank that could serve the Indian Muslim community. His
initiative resulted in the creation of Habib Bank, with HO in Bombay and fixed
capital of 25,000 rupees. The bank played an important role in mobilizing funds
from the Muslim community to finance the All-India Muslim League's campaign
 for the establishment of Pakistan. Habib Bank also played an important role in
channeling relief funds to the people hurt in the communal riots and violence that
preceded the departure of the British from India. Habib Bank Limited established
itself in Bombay (now Mumbai) in 1941. After Pakistan was born in 1947, Habib
Bank, at the urging of Governor-General Jinnah, moved its headquarters to
Karachi, Pakistan's first capital. The Habib family owned and managed the bank
until the Pakistan government nationalized it on 01 January 1974.

Muslim Commercial Bank

MCB Bank Limited (Formerly Muslim

Commercial Bank)
Type Private
Founded Lahore
Registered Office: Islamabad, Principal
Headquarters
Office: Lahore Pakistan
Key people Mian Mohammad Mansha (Chairman)
Banking
Industry
Capital Markets
Loans, Credit Cards, Savings, Consumer
Products
Banking etc.
Revenue ▲PKR 31.787 Billion (2007)
Net income ▲PKR 15.266 Billion (2007)
Website www.mcb.com.pk

Muslim Commercial Bank Limited was incorporated by the Adamjee Group on

July 9, 1947 under the Indian Companies Act, VII of 1913 as a Limited Company. The
bank was established with a view to provide banking facilities to the business community
of the sub-continent. The bank was nationalized in 1974 during the government of
Zulfiqar Ali Bhutto. This was the first bank to privatized in 1991 and the bank was
purchased by a consortium of distinguished Pakistani corporate groups, led by Nishat
Group. Currently the Nishat Group owns a majority stake in the bank. The president of
the bank is Mr. Atif Bajwa (previously with Citibank) and the Chairman is Mian
Mohammad Mansha.

National Bank of Pakistan

National Bank of Pakistan

Private
Type KSE: NBP
LSE:
Founded Karachi
Headquarters Principal Office, Karachi Pakistan
Key people S Ali Raza (Chairman)
Banking
Industry
Capital Markets
Loans, Credit Cards, Savings, Consumer
Products
Banking etc.
Revenue ▲PKR 50.569 bn (USD 815.6 mln) – 2007
Net income ▲PKR 19.034 bn (USD 307 mln) - 2007
Website www.nbp.com.pk

The National Bank of Pakistan has its headquarters in Karachi, Pakistan. It has over
1,200 branches throughout Pakistan. The bank provides both commercial and public
sector banking services. It has assets worth USD 12.293 billion in 2007. Its
subsidiaries include NBP Capital, NBP Modaraba Management Company, NBP
Exchange Company, Taurus Securities, NBP Almaty et al.
Vision

To be recognised as a leader and a brand synonymous with trust, highest standards of

service quality,international best practices and social responsibility.

Mission

NBP will aspire to the values that make NBP truly the Nation's Bank by:

• Institutionalising a merit and performance culture.

• Creating a distinctive brand identity by providing the highest standards of services.

• Adobting the best international nanagement practices.

• Mazimizing stakeholder’s value.

• Dischargeing our responsibility as a good corporate citizen of Pakistan and countries

where we operate.

Board of Directors

• S Ali Raza - Chairman & President

• Mian Kausar Hameed - Director
• Mr. Ibrar A. Mumtaz - Director
• Mr. Tariq Kirmani - Director
• Sikandar Hayat Jamali - Director
• Azam Faruque - Director
• Ekhlaq Ahmed - Secretary Board of Directors
History

• 1949 National Bank of Pakistan (NBP) was established under the National Bank
of Pakistan Ordinance 1949 and was 100% govt.-owned. NBP acted as an agent
of the Central Bank wherever the State Bank did not have its own Branch..

Standard Chartered Pakistan

Type Private
Founded 2006
Principal Office
Headquarters
Karachi Pakistan
Key people Badar Qazmi CEO, SCBPL
Banking
Industry
Global Markets
Loans, Credit Cards, Savings, Consumer
Products
Banking etc.
Revenue (PKR)
Website www.standardchartered.com/pk/

Standard Chartered Bank (Pakistan) Limited is Pakistan's oldest and largest foreign
bank with over 150 branches in the country. The history of Standard Chartered in
Pakistan dates back to 1863, when the Chartered Bank of India, Australia and China first
established its operations in Karachi.

In 2006 Standard Chartered Bank acquired Pakistan's Union Bank. On 30 December

2006, Standard Chartered merged Union Bank with its own subsidiary, Standard
Chartered Bank (Pakistan), to create Pakistan's sixth largest bank.
 Type Public
1989
Founded
Lahore, Pakistan
Headquarters Lahore, Pakistan
Shahzad Hassan Pervez, Chairman
Key people
Sajjad Hussain, President
Industry Banking, Finance and Insurance
Products Financial Services
Website

Bank of Punjab

The Bank of Punjab is a bank based in Lahore, Pakistan serving the entire country.

History:

Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the
status of scheduled bank in 1994. It is not the same institution as the former Bank of
Punjab Ltd. in India, which merged with Centurion Bank to become Centurion Bank of
Punjab.
 United Bank Ltd.

Type Public
Founded November 7, 1959
Headquarters Karachi, Pakistan
His Highness Shaikh Nahayan Mabarak Al
Nahayan, Chairman
Key people Sir Mohammed Anwar Pervez OBE, Deputy
Chairman
Agha Hasan Abedi, Founder
Industry Finance
Commercial Banking, Private Banking,
Products
Asset Management
Revenue ▲PKR 41.962 bn 2007
Net income ▲PKR 9.237 bn 2007
Website www.ubl.com.pk

United Bank Limited (UBL) is one of the largest commercial banks in Pakistan having
more than 1,000 branches inside the country. Its 15 branches outside the country are in
the United States of America, Qatar, UAE, Bahrain, and Republic of Yemen. It also has
representative offices in Teheran, Iran, and Almaty, Khazakstan. Agha Hasan Abedi
founded the bank in 1959. In 1971 the Government of Pakistan nationalized it. In 2002,
the Government of Pakistan sold it in an open auction to a consortium of Abu Dhabi
Group and Bestway Group. Since its privatization the bank has been successfully turned
around and remains a robust and strong performer in all major segments of its operations.

Online banking:

UBL’s state of the art online banking, customers were able to access their account from
more than 350 branches located in 71 cities across Pakistan. Transactions such as Cash
Deposit, Cheque Encashment, Stop Payment, Account Statement, Funds Transfer were
done online without the need to travel to the local branch.

Board of Directors:

• His Highness Shaikh Nahayan Mabarak Al Nahaan - Chairman

• Sir Mohammed Anwar Pervez OBE - Deputy Chairman
• Mr. Atif R. Bokhari - President & CEO
• Mr. Omar Ziad Jaafar Al Askari - Director
• Mr. Zameer Mohammed Choudrey - Director
• Mr. Ahmad Waqar - Director
• Dr. Ashfaque Hasan Khan - Director
• Mr. Aqeel Ahmed Nasir - Company Secretary & Chief Legal
• Mr. Abdul Rauf Malik - Director
• Mr. Aameer Karachiwalla - SEVP/Group Chief Financial Officer
• Mr. Ejazuddin - Group Exective/Audit & Inspection Group
• Mr Salahudin Khan ( AVP )