You are on page 1of 43

Hunjra, A. I., Ali, A. & Anwar, S. (2012).

The Impact of E-Banking on Customer Satisfaction: A


Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

The Impact of E-Banking on Customer Satisfaction: A Comparative Analysis on


Pakistani
Ahmed Imran Hunjra1, Amjad Ali2 and Saad Anwar3
Abstract
The present study statures the current status of electronic banking in Pakistan and its impact
towards the usage and also its impression on satisfaction of customers of the banks. Further,
based on the outcomes from the data gathered on the primary scale, the study portrays the
results of survey conducted on the level of engagement of electronic banking in the minds of
the customers. The main purpose of the study is to highlight those variables which are
considered to be the major players in raising the satisfaction of customers in Pakistan. In the
past, the financial institutions in Pakistan used to have Internet to show their presence and
provide information regarding the product and services being offered by the bank. However,
during the past recent years, numerous banks have started to offer Internet Banking as well to
cater the customers and promote their image as a friendly institution and to facilitate their
customers while allowing them to perform banking activities without visiting the bank. From
the research, it has been observed that customers who have availed the service are enjoying
the benefits yet they feel bit uncomfortable in terms of Online Service Quality. The customers
have shown their concerns about the timely response of personals. Many of the customers
have raised the objection that not all utility services have been enlisted in the options of
Internet Banking. Also, customers do have awareness but not on a large scale. Awareness
among the customers using electronic banking services is quite high but use of Internet or
Mobile Banking is a new trend and experience, and customers are reluctant to work freely
with the new environment.
Keywords: E-Banking, Customer Satisfaction, Pakistan, Banking Sector
Introduction
Earlier, a bank was considered four-wall protected building that was intended to secure
people money. During early eightys, when the technology revolutionized banking sector too
modernized itself while introducing new kinds of services that may be performed
electronically under a one word term known as E-Banking or in a full form as Electronic
Banking. E-banking is also designated as a branchless banking, introduced as a new notion.
The concept itself is self-explanatory. In one of the researches conducted, (Sayyar, and Wolfe,
2007) stated that the branchless banking encircles such kind of banks that do not exist
physically as mortar, and yet are able to provide their services electronically and over the
internet. Electronic Banking shortened as e-banking, thus, is an umbrella of numerous
banking activities that are offered by a bank to be performed electronically. If one needs to
1

Lecturer, UIMS-PMAS-University of Arid Agriculture Rawalpindi, and PhD Scholar Iqra University
Islamabad, Pakistan
2 Ph. D Scholar at National College of Business Administration and Economics (NCBA&E), Pakistan
3 MBA Student, Allama Iqbal Open University Islamabad, Pakistan
1

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

identify the key distinctive features of the e-banking, the list may range from transferring of
funds to paying bills.
Ever since the era of technology started, people are finding themselves comfortable. Every
organization is trying to be equipped in order to remain in the competition. Banking industry,
like the other large organizations, is being kept on emerging at a large scale. Increasing trend
towards electronic banking is one face of its emergence. The facility of electronic banking
gets more on demand when a customer from a busy environment does not have enough time
to spare in going bank, stand in a long waiting queue to perform detailed banking activities or
paying bills even. Besides, it even gets worst when a customer is intended to find out the
working branch, want to operate for a transaction and find no access to it. The technology of
electronic banking resultantly has become indispensible while facilitating a user to have an
online access to his her account at any time.
Hence, a bank that facilitates its customer from anywhere around the world at any place even
into their homes over the internet is an Ultimate Internet Bank (UIB) and the banking
services that are delivered either electronically or over the internet is collectively known as
Electronic Banking.
Before getting into further detail, clarity is required for the term electronic banking. The term
e-banking is used to relate any kind of banking activity which is performed electronically.
Most of the times, Internet Banking is often taken alternatively as Electronic Banking which
is however, not a right phrase to be called. It must be kept in mind that Electronic Banking
includes several traditional banking activities like ATM, Telephone Banking, Plastic Money,
etc. The most recent additions are Internet Banking, Mobile Banking, and Digital TV
Banking. Electronic Banking is also referred as Electronic Funds Transfer (EFT) and is a
mean to transfer of funds from one account to the other. Table 1.1 explains the various
features and functions being offered under the umbrella of e-banking.
Table 1.1: Features and Functions of Electronic Banking
Features

Telephone
Banking

Self Service
Terminals

ATMs

With drawls

Deposits

Balance Enquiries

Interim Statement

Transfer Funds

Cheque Book Orders

Change ATM Card PIN

Internet
Banking

TV
Banking

Y
Y

Y
Y

Stop Payment of
Cheques

Exchange Rates

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Stop Orders

Billing

Source: (FNB Brochure, 2001); (TV Banking, 2010)


Electronic banking is quite beneficial for the development of the financial sectors especially
in developing and under developing countries due to its cost effective deployment, and
widened access of its financial services for the hosting banks customers. (Birch, and Young,
1997) conducted the study on electronic banking with respect to customers perspective.
Through their research, they came on to the common ground that customers main intention is
to look for the efficient and effective operation in conducting any kind of financial transaction
while seeking for options in terms of fundamental and non-fundamental products offered by
the banks against the competitive prices and returns. In support to a statement made by
(Birch, and Young, 1997), certain other researchers (Polatoglu, and Ekin, 2001; Black et al.,
2002; Howcroft et al., 2002) believed that the wide acceptance of electronic banking system
is due to its time and effectiveness in terms of cost as well as the utility it offers. (De Young,
2001) ranked the concept of electronic banking with a better grade. He stated that apart of
facilitating the customers through internet, the electronic banking has eased the detailed
banking operations and has brought almost every activity under a mouse click.
(Pikkarainen et al., 2004), termed such electronic banking activity as Internet Banking.
According to him internet banking can alternatively be known as internet portal which helps
the banks customers to perform different kinds of banking activities that may range from bill
payment to investment making. Online banking system is advantageous both for the banks
and so for the customers. Banks may get benefited in the form of lowering of operational cost
by rendering services of electronic banking to the customers since these services may involve
fewer mortar branches and quite a few staff members. As for the customers perspective,
electronic banking services provide ease of handiness, swiftness and from anywhere to
everywhere user account availability. Later, at another place, (Pikkarainen et al., 2006) stated
that electronic banking is a system that assists the banks to ease the work load of handling
customers. On the other end, it also gives support to the customers to access their accounts,
conduct transactions and get relevant information. It is usually come across listening that the
tendency is growing towards the global adoption of electronic banking but it should be kept in
mind that new technology brings new issues to counter. The concerns that may arise while
dealing with electronic banking:
1.
2.
3.
4.
5.

Impact of electronic banking on Satisfaction of customer/s?


Awareness of usage of electronic banking in terms of technology and services.
Level of Quality of Services being offered on Internet.
Soundness of System Credibility of electronic banking in order to be endured.
Successful implementation of electronic banking in Pakistan.

Pakistan has seen number of ups and downs in the field of investment and particularly in
banking industry in the past. (Sajjad et al., 2011, p.3) stated that in early ninetys, the banks in
Pakistan experienced chief breakdown, more specifically in line of insurance and monetary
value. (Kaleem, and Ahmad, 2008, pg.3) stated that due to such collateral damage in Pakistan,
the foreign banks soon after, held the grip by heavily introducing ATMs and credit cards in
the mid-90s, leading some of the native financial organizations to get crumpled, although
domestic banks followed in the late 90s to cope up with the business. In an annual report,
published, (State Bank of Pakistan, 2003, p. 110) put forward the reason of this late indulgent
towards electronic banking. The report argued that regulatory hurdles, higher startup costs,
on-going banking sector reforms and lack of technical skills were the major issues. With these
3

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

given facts, in accompanied with certain rumors of destabilization of financial institutions,


some valid concerns were raised among the people in Pakistan that resulted in losing the
confidence in own indigenous banks.
Earlier, (Kazmi, S.H., 2002) had also conferred that even with a late initiative in respect of
electronic banking; efforts were being put into the account to deal with the rising competition
across the globe. MCB (Muslim Commercial Bank) arranged Pakistan Electronic Banking
Conference in the promotion of electronic banking which was co-funded by IBM, Teradata,
ABN-AMRO and local newspaper. Another movement was made in the mode of installation
of ATMs during 90s to counter the emergence of foreign oriented banks. Whilst many banks
have their own ATMs installed outside their branches, numerous banks jointly introduced a
dedicated network using a leased line over the internet to improve their operations while
reducing cost. In Pakistan, this system is termed as One Link that allows an ATM card
holder to access his/her account. The card holder/customer either from the parent bank or
from the partner bank are allowed to have an access to his/her account though using this line.
There are certain other influences that have been optimized as key factors in avoiding using
internet or computers for security reasons like lack of knowledge in using certain services,
and sniffing threat like eaves dropping. A major landmark was made, when an Electronic
Transactions Ordinance was passed in 2002. This ordinance officially permitted the digital
signatures in order to reduce the expected threats that are linked with the use of an electronic
medium business. To be an active participant of this growing economy, Pakistan must build
up its electronic commerce framework which may be consisted of three major components
like secured transactions, lawful infrastructure along with the required awareness of the
customers, and banks electronic readiness in terms of online availability, so to fulfill the
requirements of its users over the internet.
The purpose of this study is to examine the influences that play a role on the impact of
electronic banking on satisfaction of banks customers. The impact may be analyzed from the
study of banks along with the satisfaction/dissatisfaction of customers from electronically
offered services and whether the customers are satisfied with the quality of services being
offered in Pakistan. The study will also help to unleash the actual awareness of the customers
towards the usage of banking performed electronically which may lead to the tendency of
using internet and other electronic medium. This study will also cover the discussion that
whether the system is dependable enough to meet the user requirement and is useful in
maintaining the credibility of a system in terms of security and privacy of its users.
II. Literature Review
Twenty first century is marked as a revolutionized period in the field of IT and
telecommunication. The technology since has started influencing different modes of life,
modernization too gets matured. Progress and modernization in fiscal amenities, (Van Horn,
1985, p.621) identified it as the life blood of efficient and responsive capital markets. In
support to the statement made by Horn, (Hughes, 2001) envisaged that the rapid growth in
dissemination of data electronically has been a reason for remarkable changes in financial
industry during past few years with the increasing rate of improvement in technology, and the
competition among players with growing consumption needs.
Numbers of studies have so far been conducted on the improvisation of banking industry.
(Dewan, Freimer, and Seidmann, 2000; Seitz, and Stickel, 1988) added the argument that the
banking industry is making a shift using revolutionized services since the birth of internet.
(Tan, and Teo, 2000) supported the statement of (Dewan, Freimer, and Seidmann) and stated
that the growing impact of the Internet has lead the emergence of internet banking that
4

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

allowed the customers to perform various banking activities to perform online through banks
hosted website. (Birch, & Young, 1997; Dannenberg, and Kellner, 1998) came on to the
common ground that electronic banking provides an advantage to both customers and the
banks. (Barnes, and Howlett, 1998) further explained a view of introducing information
technology. They stated that electronically dissemination of data has also reduced personal
contact between the service facilitators and the clients which unsurprisingly ended up on a
complete transformation of old-fashioned bank-customer relationships. In addition,
(Lymperopoulos, and Chaniotakis, 2004) further stated that figuring out the reasoning which
may be critical to the decision, plays a vital role in terms of service delivery. It is also
worthwhile to study the influences about the introduction of a new technology in terms of
performing transactions electronically. So to perform varied financial activities through
electronic means, different financial intermediaries such as banks; introduced a new kind of
service that covers varied banking services of a bank under its umbrella. The new era knows
the service as Electronic Banking which is shortly abbreviated as E-Banking.
Varied authors suggested diverse perspective and elucidated the concept of electronic
banking. The most acceptable definition world-wide for electronic banking, and which is
being described here in this paper as well, was originally termed by the (Basel Committee
Report, 1998, p.3). The report described e-banking as the stipulation of small valued products
of banking using electronic channels. The activities may include deposit taking, online bill
payment, management of user account through a given account management area, and
payment through electronic money etc. (Hussam et al., 2003) some of the leading bankers
explained the term E-Banking. They envisaged that e-banking or electronic banking can be
termed as an umbrella that holds the number of banking processes through which a customer
may execute numerous banking transactions electronically without visiting a brick-and-mortar
branch. (Sherrod, 2000) envisaged that electronic banking predominantly allows a customer
to perform any kind of banking activity through using any computer connected with high
speed internet connection and an interactive browser. (Banks, 2001) seconded the statement
of Sherrod and stated that electronic banking is a wide-range spectrum that holds the
savings/deposits, balance enquiry, transfer of funds, credit card services etc. Further he added
that while electronic banking does not enjoy the allure and exhilaration of electronic
tradeoffs, it is a business function that facilitates itself with the internet updated technologies.
In simple, electronic banking is not a product of bank; instead it is a sub-division of ebusiness that hedges all categories of business to be performed using electronically
maintained system in order to conduct the successful transactions. (Mohammed, et al., 2009)
explained the working of e-banking. He stated that electronic banking works on electronically
configured channel through which the major banking activities may be conducted. The
example may hedges from transferring of funds to paying bills over the internet. (Aladwani,
2001, Mols, 1999, and Sathye, 1999) explained the electronic banking as a collection of
services, through which a customer is able to perform numerous banking activities to perform
e.g. stable response to the customers query, inter-account transfer, paying bills etc.
The major advantage is that if one needs to perform any kind of banking services or
operations; he may need not to interact with the banking personnel but can perform his
required banking activity himself. (Gonzalez, 2008) in his research claimed that electronic
banking has seen an acute progress and has surely converted outmoded practices in banking.
(Maholtra, and Singh, 2007) in their research added the concrete in the foundation of its
importance and stated that electronic banking is tilting towards the shift in the current
practices of marketing that resultantly leads to the improved performance of the banking
industry.
5

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

(Blackwell et al., 2001) explained e-commerce and termed it as clicks and order
transaction. He further stated that the success in this competition depends on dealing with the
customers and to upkeep their customers better than their competitors while offering better
opportunities and solutions to their customers problems that were available in the past.
Electronic commerce has been variously defined over the period of time. According to
(Zwass, 1996) electronic commerce is a name of sharing of information, up keeping of
connections, and the dealings made through information technological tools. Later (Savoie,
and Raisinghani, 1999) explained electronic commerce and stated that it provides an ease of
performing transaction with just a touch of a button and a customer may have access to what
he/she desire at any time, at any place. (Lawrence, et al., 2000) envisaged that electronic
commerce is not just about the transaction. Among the main ingredients, focusing on the
customers and value maximization are the key propositions which may be a part of proactive
relationship management. (Turban et al., 2004, p.4) later, at another stage, described in detail
the electronic commerce. They stated that electronic commerce is a process of purchasing,
retailing, transporting or trading of products or services along with the concerned information
through the networks of computer like internet etc. Electronic commerce, they added, can be
explained under numerous viewpoints like communication, amenity, industrial processes and
businesses. In terms of say amenities, they stated that electronic commerce is a technological
instrument that covers the requirements demanded by government institutes, various
businesses, customers and administration to low down the cost of services with the
improvement of quality.
Quality improvement may be addressed especially in terms of customer facilities and growing
speed of delivery of service, requested. (Lawrence et al., 2002) added that the ethics of
electronic commerce strongly rely on innovations and persuasive techniques in order to
increase the efficiency of processes conducted, cost reduction, while seeking for new market
prospects. Seeing through the other perspective, electronic commerce facilitates the
accomplishment of transactions among two or more parties using unified network. These
unified networks can be a permutation of telephone systems, cable TV, leased lines, etc.
(Kalakota, and Robinson, 2000) further added that electronic commerce also include
electronically made payments in order to increase number of clients and transfer of funds.
To explain further, (Newton, 2000) envisaged that the electronic commerce which is also
termed as EDI (Electronic Data Interchange) allows the exchange of business data
electronically (such as purchases and invoices) among the organizations and their trading
partner. He argued that EDI facilitates faster and effective trading which has increased the
quality points and favor among its company players worldwide. The organizations that use
EDI technology have some nature of EDI Gateway. This EDI Gateway is also frequently
identified as Electronic Commerce Gateway (ECG). The EDI Gateway is actually an
assortment of computers and related soft wares that permit the exchange of information to
execute. The EDI Gateway acts as a heart in communication medium among the
organizations letting them to connect negotiate and trade.
(Zhres, 2012) defined the concept of Electronic Money. He stated that electronic money or
e-money is a digitally comparable of cash that can be used for delivery of payment without
the involvement of users bank account. While explaining further, he added, electronic money
is an instrument that acts as a prepaid deliverer. Nature wise, e-money can be software based
or it may be hardware based. For example GeldKarte is hardware based card used in
Germany. The card can be recharged from any recharging point or any ATM that has the
facility. Another face of e-money, (Zhres, 2012) added is software based. Herein, the
electronic money may be accessible through Internet using PayPal, for example. Electronic
Money focuses a certain group of market, though the growing usage of financial service
6

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

electronically may for sure create a big consumer market in forthcomings. (Zhres, 2012)
envisaged that the electronic money facility is designed in such a way that a user can even in
secret deliver the payment at a cheaper cost as compared to, for example, payment through
credit cards. Schemes based on e-money can recognize themselves as robust opponents
especially in milieu of delivery of payment electronically through using Internet in
forthcomings. Till today, even, the number of transactions through electronic money is not
very large. Perhaps, the convolutions in performing e-money may be one of the major reasons
of its modest progress. The quality standard must therefore be higher to maintain its
attractiveness for the customers and must be thrived from expected frauds and threats.
Electronic money needs a cryptographic technique in order to make sure that the peer-to-peer
negotiation must be controlled and monitored. Predominantly it must be ensured that the
extensive safety measurements should be taken when the electronic money is kept secured on
account of a customer. Consequently, processes to place application for fresh clients are
complex to execute electronic payment systems. The growth of digitalizing of financial
amenities perhaps may lead to gear up the usage of electronic money in forthcoming days. In
the given scenario, mobile wallets may also be a chief factor. The mobile wallets are virtual
ones that are used to store cards for payment delivery, vouchers or tickets etc. To explain it
shortly, it empowers a cellular phone to pay with a digitally stowed virtual credit card. While
discussing through the process of electronic money, (Zhres, 2012) added a concept of Virtual
Money. He stated that virtual money is another form of electronic money. It is a complete
peer-to-peer kind of e-money that permits delivery of payments online. It facilitates the two
parties payer and payee without involving the third party (financial intermediaries e.g. banks).
(Allen et al., 2001) explained the concept of Electronic Finance and stated that it is the
endowment of financial amenities and markets with the use of electronic communication and
computation. To make it simple to understand, it is about performing all kind of financial
activities, for example, sales order, payment for invoices, claims for staff expenses, and like
electronically through using internet technology. In the past few years, electronic finance has
restructured the course of action of financial landscape, specifically, in terms of electronic
banking and brokerage services worldwide. The financial services being delivered
electronically, whether online or using some remote mechanism, has spread swiftly. Even
though there are certain dissimilarities across the globe, while considering such factors like
the availability and eagerness of telecommunication infrastructure, cohesiveness among the
two may lead in spreading of electronic finance.
Electronic finance appears to be one of the most auspicious areas defined under the umbrella
of electronic commerce since monetary services are highly informative and most of the time
does not entail the physical delivery. It is now apprehended that there are not only some
comparatively simple, but also time-sensitive products such as brokerage which electronic
finance facilitate it with convenient as compared to other existing services. There are areas
which are identified to facilitate the transformation of new innovative technologies that
permits or forces to redesign the market structure at base. At some place, it may give rise to
new business models, but on the other hand, it may leave certain impact, like banks corporate
advisory work, for example. From the transformational view point, the Internet may
exemplify an up-to-date solution against the old problems for banks.
III. Emergence of Electronic Banking in Pakistan
Presently, it is evident that large number of commercial organizations in Pakistan are getting
engaged with electronic commerce technologies on an enormous scale. According to the
newspaper an article published regarding the growth of electronic banking in Pakistan, (EBanking deal, 2013), the growth of electronic banking has geared up raising a huge sum of
7

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

money transactions to Rs.6.5 trillion during the first quarter (Jul-Sep 2012) of the fiscal year
2013. Looking at the current statistics of banks in Pakistan, according to the recent report of
(SBP, 2012, p.72) as on June 30th 2012, the number of scheduled banks working in Pakistan
are 34 along with 4 other financial institutions with 9,838 branches all over the country. With
the break-even analysis, there are five public sector banks with 1,748 branches, Twenty two
local private banks with 7,498 branches, Seven Foreign oriented banks with 46 branches and
four other financial institutions with 546 branches. (Kolachi, 2006) stated that banks in
Pakistan are providing the following online oriented services and products like inquiry of
account statement, balance inquiry, and fixed deposit. Payment related issues like, fund
transfer, payments made through credit card and direct payments along with utility bill
payment. Also, request may be made for acquiring cheque book, payment stoppage, execution
of demand draft and new fixed deposits. In addition, downloading can also be made in terms
to acquire customer profile, statement download, and other information along with guidelines
of using electronic banking. Table 2.1 provides the statistical overview over the development
of electronic banking system in Pakistan extracted from the SBP Annual Report (2012, p.70)
and SBP Payment Systems Review for the FY13.
Table 2.1: Electronic Banking Statistics in Pakistan
Item

FY09

FY10

FY11

FY121

FY132

RTOB

6,040

6,671

7,416

9,291

9,412

ATM

3,999

4,465

5,200

5,745

5,987

POS

49,715

52,049

37,879

34,879

34,229

Source: Payment System Department (Statement Bank of Pakistan)


1. SBP Annual Report - Statistical Supplement (FY12)
2. SBP Payment System Review (FY13) 1st Qtr. Jul - Sep 2012
Statistically, about 93 percent bank branches are now offering real-time online branch
banking services in Pakistan, according to State Bank of Pakistans Payment System
Quarterly Review for the 1st Quarter of FY13 released on January 1, 2013 on Tuesday. It has
been estimated that a total of 242 more ATMs have been installed by various banks in
Pakistan raising the total of 5,987 in the country. Overall, total number of 121 bank branches
have been added to the network on Real-Time Online Branches (RTOB) in the first quarter of
FY13 that raised a total of 9,412 which are offering RTOB services out of 10,111 bank
branches across the country, with the percentage 93.08% (9,412/10,111). During 1st quarter of
FY13, 19.67 million plastic cards were issued in the country with 9.55 percent as compared to
preceding quarter. On the other side, overall transactions of electronic banking in terms of
volume elucidated the growth of 15 percent to 74.87 million with the volume of transaction
increased by 5 percent to record Rs.6.5 trillion as compared to other preceding quarter.
Hence for upkeep, great number of institutions has developed their websites to keep their
patrons well informed about their financial offerings and the rendering of their services.
Websites are used primarily to promote the image of a company. Certainly, there are other
cases wherein the technologies of electronic commerce may go beyond merely just
representation. The offering may allow a customer or a client to perform financial
transactions or even tradeoffs. It is noteworthy to mention that SBP has ordered all bank
branches to become Swift Branch till June 30th, 2013. With this status, all bank accounts
will become international account and the account holder can easily receive or send
transactions abroad. The other nature of service delivery to the clients may be in the shape of
ABM or in the shape of ATM. In addition, the other facilities may include automatic funds
8

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

transfer, electronic bill payment, call center service etc. Internet is now a biggest electronic
market across the globe, and the organizations must have to promote themselves.
IV. Conceptual Framework
To proceed further for conclusion and recommendations of the study, questionnaire survey for
these (after which the final ranking has been done) factors have been conducted. These factors
are given below:
1. Customer Awareness
3. Online Service Quality

2. System Credibility
4. Customer Satisfaction

A framework has also been designed to analyze the hypotheses and answer the investigate
quarries. The framework is depicted in following figure:
Figure 1: Conceptual Model of Electronic Banking
Independent
Variables
System
Credibility

Dependent
Variable
Customer
Satisfaction

Customer
Awareness

Online Quality
Service

Table 1: Reliability of Measurement Instruments


Sr. #

Constructs / Variables

# of Items

Cronbachs Alpha ()

Customer Awareness (CA)

08

0.838

Online Service Quality (OSQ)

14

0.860

System Credibility (SC)

11

0.874

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Customer Satisfaction (CS)

08

0.861

Total

41

0.942

Source: Field data


While getting through the reliability of every variable; it may be observed that the Customer
Satisfaction with eight (8) items is a dependent variable having Cronbachs Alpha value 0.861
(86.1%). System Credibility with eleven (11) items is an independent variable depicting the
highest value of Cronbachs Alpha. Online Service Quality with fourteen (14) items is
another independent variable representing Cronbachs Alpha value 0.860 (86%). However,
Customer Awareness with eight (8) items is also an independent variable that holds the
minimum Cronbachs Alpha value 0.838 (83.8%). Finally, the reliability index of all the
variables with total forty one (41) items is 0.942 or (94.2%).
V. Results and Interpretation
Established on the information gathered from various studies, an effort has been put into
account in order to make sure that the analysis being conducted on the data gathered through
questionnaire is accurate and is true in nature to the extent it could. In doing so, a
questionnaire was designed with the help of past questionnaires which have been posed
earlier in this background. Moreover, it was re-evaluated at various discussions with the
supervisor, so that a proper and comprehensive questionnaire may build up. Additionally, it
was also kept in mind that respondents are the customers from different banks with different
set of minds, and may not like to spare enough time to fill the questionnaire form or if they
will, may fill it half-heartedly. Consequently, a 5 point Likert Scale as a closed end
questionnaire was posed to collect the data, so that customers or the individuals may find ease
in to fill the form in no time, and the study may come up with the true and genuine
representation of the current development of electronic banking in Pakistan.
When the data is gathered, SPSS tool was implemented to figure out the reliability check and
its relevancy towards the topic. In doing so, many questionnaires were discarded which were
haphazardly filled up or did not meet the requirement. Result of different understudy
variables and the degree with which the agreeableness along with its implications with respect
to the respondents and the liaison among them have been analysed by improvising varied
statistical techniques by using SPSS Tool. The results are summarized below:
In this study, three different variables have been identified which are directly or indirectly
involved in affecting the satisfaction of customers towards the usage of electronic banking.
To do the needful in Pakistani environment, focus group approach has been adapted. The
customers of the banks are put into focus in respect either they are enjoying the benefits of
electronic banking or not being offered by their banks irrespective of their age or other
demographic features. Also, the results indicating degree of agreeableness or disagreeableness
to the various statements of the selected variables by the respondents have also been analysed
by descriptive statistic.

10

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Table 2: Frequency Distribution w.r.t. Demographic Profile of Respondents


S/No.
1.

2.

3.

4.

Indicators

Category

Gender

Male

Age

Education

Occupation

Frequency

Percentage

156

62.4

Female

94

37.6

18 25

145

58.0

26 35

72

28.8

36 45

25

10.0

46 55

2.8

> 55

0.4

Higher Secondary

14

5.6

Bachelors / Undergraduate

86

34.4

Masters

86

34.4

Ms / M-Phil

52

20.8

Doctorate

3.2

Other

1.6

Government / Civil Service

23

9.2

IT and Telecom

25

10.0

Education

66

26.4

Medical

17

6.8

3.6

Trading / Business / Manufacturing

15

6.0

Student

52

20.8

Other

43

17.2

National Bank of Pakistan (NBP)

93

37.2

Habib Bank Limited (HBL)

59

23.6

United Bank Limited (UBL)

35

14.0

Bank Alfalah Limited (BAL)

17

6.8

Dubai Islamic Bank (DIB)

24

9.6

3.6

13

5.2

Media

5.

I am an
account
holder of

Standard Chartered Bank (SCB)


Other
Source: Field Data
11

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

The age of respondents ranges between 18 and 55 or above with the average age of 36.5
approximately. It can be observed that among the respondents, the percentage of male
respondents is 62.4% and of the females is 37.6%. The reason of less response from female
side may be the gender imbalance due to our cultural values and since the questionnaires were
distributed randomly, the ultimate goal was to figure out those people who go bank or operate
their account regardless they are using electronic banking or not. This may be treated as
another factor of less response. Moving further, individuals range within the age 18 to 25
have come up with the response frequency of 142 followed by the individuals with the age
range 26 to 35 with the frequency 72. Customers or individuals with the age range 36 to 45
have come up with the frequency 25. Very low response has been observed from the
customers within range 46 or above.
In the area of education, individuals or customers having strong hold in educational
background viz. Bachelors or Undergraduates with frequency 86 and Masters with same
number of frequency have shown more promising attitude towards the usage of electronic
banking. While moving further, frequency distribution explores the Occupation and reveals
the maximum number of respondents is from education sector depicting the frequency 66.
Government Sector raised 23 responses followed by Telecom Sector with 25 responses.
Students are the second highest in response with frequency 52. Response from the Media
sector claims minimum number of responses. Responses from other occupation endorse 43.
Since the target customers were focused who hold the bank account, varied response has also
been observed in terms of bank accounts as well. Many of the customers who have selected
multiple banks, as they have multiple accounts in various banks, the bank was majorly
selected on the bases of their major operational account. At the top, National Bank of Pakistan
holds 37.2% from sample customers population followed by Habib Bank Limited 23.6% from
the sample population. UBL holds 14% from sample population. Standard Chartered and
Dubai bank Islami covers less populations sample holding 9.6% and 3.6% respectively. Other
category holds several other banks like CITI, Bank, Silk bank, MCB and numerous other
which were not mentioned in the option. The descriptive statistics of demographic variables is
being tabulated in the following table 2.
Table 3: Descriptive Statistics of Demographic Variable Response

Variables

Mean

Median

Standard Deviation

Variance

Range

Gender

1.38

1.00

0.485

0.236

Age

1.59

1.00

0.813

0.661

Education

2.86

3.00

1.017

1.034

Occupation

4.73

4.00

2.426

5.886

Bank Account

2.59

2.00

1.786

3.190

Source: Field Data


From the data gathered and processed through SPSS, the results of different variables
understudy along with its frequency distribution and descriptive statistics in terms of agree,
disagree or neutral are being tabulated in the following table 3.
Table 4: Frequency Distribution and Descriptive Statistics w.r.t. Customer Awareness ( =
0.838)
12

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Descriptive Statistics of Response (N=250)


#

Items

DisAgree

Neutral

Agree

Mean

SD

1.

I receive enough information of


using e-banking services from bank.

66

89

95

3.12

1.08

2.

I am well updated with benefits of


using online banking (e-banking).

51

70

129

3.36

1.07

3.

I am well aware of using online


banking (e-banking).

42

85

123

3.45

1.13

4.

I am aware of official monitoring of


my activities made by bank.

38

92

120

3.39

1.03

5.

I believe there is no hidden


information while using e-banking.

62

86

102

3.18

1.10

6.

I get updated on the execution of


transaction through SMS/E-mail

60

77

113

3.32

1.27

7.

Bank encourages me to transfer the


funds using online banking.

39

81

130

3.48

1.12

8.

Bank increases the awareness of


secured e-banking.

44

81

125

3.48

1.06

Source: Field Data


In the table 4, the Reliability Cronbachs Alpha = 0.838 reveals that the gathered data is
reliable at good scale. Exploring the data, it can be analysed that large number of customers
are well aware of using electronic banking. Customers express in Q#2 and Q#3 that they are
not only well updated with the benefits of using online banking (electronic banking) but they
are also well aware of using it properly. However, customers have shown mix response and
come up with little dissatisfaction in Q#1 that they dont get updated from the bank or bank
do not update them as much as it is supposed to be though. Customers, from Q#4, and Q#5,
also know the fact of being monitored of their banking activities and believe that they dont
find any hidden information towards the usage of electronic banking. However, from Q#6, a
mix response has been observed in terms of being updated with the transaction activity
through some SMS or e-mails. A positive response in Q#7 and Q#8, however, has been
observed that bank encourages using online banking for data transfer and provide awareness
of strong security policy towards the usage of electronic banking. In the table 4, Online
Service Quality is being defined statistically.
Table 5: Frequency Distribution and Descriptive Statistics w.r.t. Online Service Quality ( =
0.860)
13

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Descriptive Statistics of Response (N=250)


#

Items

DisAgree

Neutral

Agree

Mean

SD

45

92

113

3.30

1.00

20

82

148

3.63

0.95

44

100

106

3.30

0.96

48

79

123

3.37

1.02

13. E-banking services are available at


all locations I need.

62

85

103

3.22

1.02

14. I never faced any congestion or


difficulty in getting connected to my
bank.

53

91

106

3.30

1.04

15. The content on the web page of the


bank is appropriate and pleasant to
understand.

33

92

125

3.50

1.01

16. Operations through e-banking are


really fast as compared to in-branch
banking

28

76

146

3.60

1.05

17. I use e-banking to meet my cash


requirement after the banks are
closed.

38

63

149

3.60

1.09

18. Online banking (E-banking) allows


easier maintenance of transaction
activities.

25

85

140

3.60

1.02

19. Bank performs the service correctly


at the first time.

40

95

115

3.40

0.99

9. Technological systems are being


used for e-banking are reliable.
10. I find the operations performed
through e-banking are accurate.
11. I find the operations performed
through e-banking are specific
towards my request.
12. I find the operations through ebanking get completed without any
breakage.

14

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

20. Prompted service (e.g. account


opening, customer query)

29

103

118

3.42

0.92

21. Issues / problems are resolved well


in time.

55

78

117

3.31

1.09

22. Timely response from the personals

45

90

115

3.34

1.02

Source: Field Data


From the above statistics of Online Service Quality in table 5, the Reliability Cronbachs
Alpha = 0.860 reveals that the gathered data is reliable at good scale. Traversing through the
data, the overall quality of services being delivered by the banks in Pakistan has improved a
lot. Since it has increased a great level of confidence, people are finding themselves attracting
towards the usage of electronic banking. From Q#9, Q#10, Q#11, Q#12, and Q#13, it can be
observed that the customers show great confidence of transaction accuracy in performing the
transactions electronically. Large number of customers have also agreed upon the reliable
connectivity. They have shown the strong positive attitude towards the usage of electronic
banking and the systems being used in the delivery of electronic services. Customers
appreciate easy access of their account from anywhere to everywhere. However, result of
Q#14 has come up with a point that the connectivity problem though has improved, but issues
are still there and are needed to be addressed. As for the content on the page, Q#15 relates the
status of understandable contents and there is a huge number of customers who speaks neutral
on the issue. Q#16 and Q#17 envisaged that banks are now able to facilitate their customers to
meet their cash demands even after the banking hours leading to a concept of 24/7 banking.
This also leads to an understanding that transactions through electronic banking are much
faster than in-branch banking. Q#19, Q#20, Q#21, and Q#22 justifies that banks have also
improved their IVR system and also focussing on training of the personales involved in
troubleshooting the complaints to satisfy the customer demands. In the table 5, Credibility of
a System is being identified statistically.
Table 6:

Frequency Distribution and Descriptive Statistics w.r.t. System Credibility ( =


0.874)
Descriptive Statistics of Response (N=250)

Items

23. I feel my personal details are well


protected and secured in performing
e-banking
24. I feel my financial transactions may
not be publicized to anyone.
25. The security policies of e-banking
give me the feeling that the
information about money
transactions is secured.

DisAgree

Neutral

Agree

Mean

SD

32

107

111

3.41

1.03

19

90

141

3.61

0.91

29

82

139

3.60

1.07

15

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

26. The security policies of e-banking


give me the feeling that sending
sensitive information may not harm
me.

44

86

120

3.40

1.03

27. Only authorized person can access


the account online.

27

81

142

3.70

1.05

28. Banks website is well secured for


transfer of funds

30

87

133

3.51

0.95

29. Banks security features encourage


me to open an account online.

22

94

134

3.60

0.98

30. Online banking make banks


vulnerable to be attacked or sniffed
by hackers.

34

87

129

3.52

1.05

31. Appropriate measures are being


taken to ensure the segregation of
duties.

19

118

113

3.48

0.89

26

90

134

3.59

0.90

11

93

146

3.72

0.83

32. Proper authorization controls are


there within e-banking systems,
database and applications.
33. Data integrity of e-banking
transactions, records and
information.
Source: Field Data

From the above statistics of System Credibility, the Reliability Cronbachs Alpha = 0.874
which reveals that data is reliable at good scale. Moving through the data, Q#23, Q#24, Q#25,
Q#26, reveals that the confidence level of customers on the security and data privacy has
increased over a period of time and customers can freely perform transactions through using
electronic banking. Q#27, Q#28, Q#29, and Q#30 conceal that the customers show their
confidence in accessing their account online through using banks webpage. Customers have
shown enough confidence in accessing online accounts and have firm believe that only
authorized customers can operate their account. But on the other hand, customers have shown
little reserve-ness too, towards opening or operating account online as they believe that the
security system can also be breeched by the hackers. Q#31, Q#32, and Q#33 that to attract the
customers towards the usage of electronic banking, banks are improvising themselves
continuously in order to update with the time and along with the continuously extemporising,
banks have started segregating the duties to enhance the security and integrity of data. In the
table 6, Customer Satisfaction is being identified statistically.
16

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Table 7: Frequency Distribution and Descriptive Statistics w.r.t. Customer Satisfaction ( =


0.861)
Descriptive Statistics of Response (N=250)
#

Items

DisAgree

Neutral

Agree

Mean

SD

34. I feel relax while performing ebanking activities.

33

80

137

3.60

1.13

35. I feel satisfaction with the


procedures of using e-banking.

21

84

145

3.63

0.97

36. I find e-banking offers best services in


most useful manner.

24

88

138

3.59

1.07

19

106

125

3.60

0.90

14

74

162

3.90

0.98

39. I am satisfied with the consistency of


standards.

18

80

152

3.73

0.99

40. Overall, the concept of e-banking


brings satisfaction to me.

16

61

173

3.87

0.98

41. I am equally satisfied either face-toface meeting or perform e-banking.

38

94

118

3.48

1.11

37. I am satisfied with the wide variety


of services being offered under the
umbrella of e-banking by the bank.
38. I am satisfied with the time I save
using e-banking

Source: Field Data


The results achieved through the frequency distribution analysis of the response rate from the
respondents against the queries posed relating to Customer Satisfaction. The Reliability
Cronbachs Alpha = 0.861 which reveals that data is reliable at good scale. As a whole,
customers are satisfied with the practice of using electronic banking. Q#34, Q#35, Q#36,
Q#37, and Q#38 reveals the strong positive response towards the usage of electronic banking
with complete satisfaction. The customers believe that the range of services being offered,
under the umbrella of electronic banking are useful applications and saves the time in
performing transaction. Q#39, Q#40, and Q#41 portrays that customers are almost satisfied
with the concept of electronic banking and the consistency of standards, and they dont find
any difference whether they perform transaction using electronic banking or meet bank
personales face to face.
The table 7 explains the correlation matrix of Customer Satisfaction with three other
understudy variables i.e. Customer Awareness (CA), Online Service Quality (OSQ), and
System Credibility (SC). Results reflect the correlational significance between different
17

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

variables understudy with customer satisfaction by means of the implication of correlation


coefficient values of Pearson. Pearson reflects two things: one is direction and other is
strength between the two variables.
Apparently, seeing through the perspective of Customer Awareness with Satisfaction of a
Customer, the Pearson value has come up with 0.457 which reveals that there is a directly
proportional and strong positive relationship between the two values. This means that change
in one variable is strongly correlated with change in the other variable i.e. increasingly strong
awareness may result in strong Customer Satisfaction. Also, the sig. (2-tailed) value is 0.000,
which reflects there is a statistically significant correlation between the two variables.
Moving through to Online Service Quality (OSQ), the Pearson value has shown up 0.615,
which has come up respectively with better linearity strength revealing that there is a directly
proportional and strong positive relationship between the two values. This means that change
in one variable is strongly correlated with change in the other variable i.e. increasingly
improved online service quality may result in strong Customer Satisfaction. Also, the sig. (2tailed) value is 0.000, which reflects that there is a statistically significant correlation between
the two variables.
Coming to System Credibility (SC), the Pearson value has shown up 0.772, which reveals that
there is a directly proportional and very strong positive relationship between the two values.
This means that change in one variable is strongly correlated with change in the other variable
i.e. Customers have shown a strong reliability on the credibility of the system and hence are
satisfied. Also, the sig. (2-tailed) value is 0.000, which reflects that there is a statistically
significant correlation between the two variables.
Seemingly, if these variables be considered as major variables influencing the electronic
banking system, then while seeing through collective impact of these variables on customer
satisfaction on behalf of electronic banking towards the satisfaction of a customer, the
Pearson value has shown up 0.721, which reveals that there is a directly proportional and very
strong positive relationship between them and they collectively can create a huge impact on
satisfaction of a customer towards the usage of electronic banking. Also, the sig. (2-tailed)
value is 0.000, which reflects that there is a statistically significant correlation between them
as well.
As with correlation, Regression is used to analyse the relation between two continuous (scale)
variables. It helps to investigate the relationship among the variables understudy and testifies
the hypothesis framed to hold the study determining whether the hypothesis posed, validates
the study or not. Moreover, it also helps in prediction. Specifically, the regression analysis
helps to understand the changes in dependent variables with the change in independent
variable while the other independent variables are held fixed. It also helps to distinguish the
other parameters which are not the part of the understudy. Therefore, in the continuation of
this study, regression analysis has also been applied to identify the impact of understudy three
independent variables to figure out the satisfaction of customers which is being treated as a
dependent variable towards the usage of electronic banking. In order to perform detailed
analysis, a regression model along with the regression coefficients will be established with the
identification of dependent and independent variables.

18

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A Comparative Analysis on Pakistani Banking Sector. Bulletin of
Business and Economics, 1(1), 1-43.

Table 8: Correlation Matrix of Customer Satisfaction (CS) towards Electronic Banking (EB) with CA, OSQ, SC
CS
CS

CA

OSQ

SC

EB

Note:

Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N

CA

OSQ

EB =
{(CA+OSQ+SC)/3}

SC

1
250
0.457**
0.000
250

250

0.615**
0.000
250

0.524**
0.000
250

250

0.772**
0.000
250

0.475**
0.000
250

0.699**
0.000
250

250

0.721**
0.000
250

0.819**
0.000
250

0.861**
0.000
250

0.847**
0.000
250

** Correlation is significant at the 0.01 level (2-tailed).

Source: Field data

19

1
250

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Table 9:

Regression Model Summarya,b between Customer Awareness (CA) and Customer


Satisfaction (CS)
Variables

Model

Entered

a.
b.
c.
d.

R2

Adjusted R
Square

Std. Error of the


Estimate
est

0.457

0.209

0.205

0.648

Removed

CAc,d

1.

Dependent Variable: Customer Satisfaction


Method: Enter
Independent Variables: (Constant), Customer Awareness
All requested variables entered.

Source: Filed Data


Herein the output extracted, R is the simple correlation value 0.457; w.r.t Customer
Satisfaction as a dependent variable, and Customer Awareness as an independent variable,
from the table 4.7 (the correlation analysis). The R2 is a coefficient of determination value
indicating that Customer Awareness can explain the variances in the correlation of Customer
Satisfaction by 20.9% or 20.5% as adjusted value. However, rest 80.5% of those differences
remain unexplained in the error term. The accuracy of prediction from the Standard Error of
the estimate can be observed is somehow reasonable. Regression coefficient summary has
been tabulated in the table 10.
Table 10:

Regression Coefficient Summarya between Customer Awareness (CA) and


Customer Satisfaction (CS)

Model

1.

(Constant)
CA

Unstandardized Coefficients
B

Std. Error

2.209
0.435

0.185
0.054

Standardized
Coefficient
()

0.457

t Stat

Sig.

11.960
8.087

0.000
0.000

a. Dependent Variable: Customer Satisfaction.


Source: Field Data
From the table it can be summarized as the table provides the information to predict Customer
Satisfaction from Customer Awareness. It is evident, that both constant and Customer
Awareness (CA) contribute significantly to the model. By looking at the B column, under the
unstandardized coefficients column, the constant 2.209 is an intercept value which is also a
predicted value of Customer Satisfaction, when Customer Awareness is treated as 0. The
regression coefficient slope 0.435 claims that the change in Customer Satisfaction, when a
change takes place in Customer Awareness. Hence, the regression equation for Customer
Satisfaction can be identified as:
20

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Customer Satisfaction = 2 + 0.435 (CA)


Also, from the equation, it can be stated that Customer Satisfaction differs 0.435 times for
every portion difference with the Awareness of the Customer. Standard error of coefficient
for Customer Satisfaction is 0.054. A 95% confidence interval for the regression coefficient
for Customer Satisfaction can be conducted as:
Confidence Interval = (0.435 + k (0.054))
where k is the appropriate percentile of the t distribution with degrees of freedom equal to the
Error DF from the ANOVA table and is a standard value 1.96 (for large sample size).
Standardized Coefficient Beta () is what the regression coefficient would be if the model
were fitted to standardized the data. Herein, 0.457 is the expected regression coefficient
subject to be fitted with the model. From the t-value it can be observed as well that the two
variables hold correlation. Also, the significant or p-value of 0.000, means that the
relationship among the variables is 100% real. Figure 4.1 explains the linearity between the
two variables i.e. Customer Awareness and Customer Satisfaction. The linear curve will be:
Figure 2: The Scattered Graph showing regression line between Customer Awareness (CA)
and Customer Satisfaction (CS).

Source: Field Data


From the figure, it can be concluded that the Correlation = r = 0.457 resulting that there is a
strong increasing positive linear relationship between Customer Awareness and Customer
Satisfaction. Hence, the first Research Hypothesis of the study is valid that there is a
significant and positive relationship between Customer Awareness and Customer Satisfaction.
21

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Regression Model Summarya,b between Online Service Quality (OSQ) and


Customer Satisfaction (CS)

Table 11:

Variables

Model

Entered
1.
a.
b.
c.
d.

R2

Adjusted R
Square

Std. Error of the


Estimate
est

0.615

0.379

0.376

0.574

Removed

OSQc,d

Dependent Variable: Customer Satisfaction


Method: Enter
Independent Variables: (Constant), Online Service Quality
All requested variables entered.

Source: Field Data.


Herein the output extracted, R is the simple correlation value 0.615; w.r.t Customer
Satisfaction as a dependent variable, and Online Service Quality as an independent variable,
from the table 4.7 (the correlation analysis). The R2 is a coefficient of determination value
indicating that Online Service Quality can explain the variances in the correlation of
Customer Satisfaction by 37.9% or 37.6% as adjusted value. However, 62.4 % of those
differences remain unexplained in the error term. The accuracy of prediction from the
Standard Error of the estimate can be observed is also somehow reasonable. Regression
coefficient summary has been tabulated in the table 12.
Table 12: Regression Coefficient Summary between online Service Quality (OSQ) and
Customer Satisfaction (CS)

Model

1.

(Constant)
OSQ

Unstandardized Coefficients
B

Std. Error

1.146
0.737

0.208
0.060

Standardized
Coefficient
()

0.615

t Stat

Sig.

5.509
12.298

0.000
0.000

a. Dependent Variable: Customer Satisfaction.


Source: Field Data
From the table it can be summarized as the table provides the information to predict Customer
Satisfaction from Online Service Quality. It is evident, that both constant and Online Service
Quality (OSQ) contribute significantly to the model. By looking at the B column, under the
unstandardized coefficients column, the constant 1.146 is an intercept value which is also a
predicted value of Customer Satisfaction, when Online Service Quality is treated as 0.
The regression coefficient slope 0.737 claims the change in Customer Satisfaction, when a
change takes place in Online Service Quality. Hence, the regression equation for Customer
Satisfaction can be identified as:
Customer Satisfaction = 1 + 0.737 (OSQ)
22

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Also, from the equation, it can be stated that Customer Satisfaction differs 0.737 times for
every portion difference with the Improvement of Online Service Quality. Standard error of
coefficient for Customer Satisfaction is 0.054. A 95% confidence interval for the regression
coefficient for Customer Satisfaction can be conducted as:
Confidence Interval = (0.737 + k (0.060))
where k is the appropriate percentile of the t distribution with degrees of freedom equal to the
Error DF from the ANOVA table and is a standard value 1.96 (for large sample size).
Standardized Coefficient Beta () is what the regression coefficient would be if the model
were fitted to standardized the data. Herein, 0.615 is the expected regression coefficient
subject to be fitted with the model. From the t-value it can be observed as well that the two
variables hold correlation. Also, the significant or p-value of 0.000, means that the
relationship among the variables is 100% real. Figure 4.2 explains the linearity between the
two variables i.e. Online Service Quality and Customer Satisfaction. The linear curve will be:
Figure 3: The Scattered Graph showing regression line between OSQ and CS.

Sour
ce: Field Data
From the figure, it can be concluded that the Correlation = r = 0.615, so there is a strong
increasing positive linear relationship between Online Service Quality and Customer
Satisfaction. Hence, the second Research Hypothesis of the study is also valid that there is a
significant and positive relationship between Online Service Quality and Customer
Satisfaction.
Table 13: Regression Model Summarya,b between System Credibility (SC) and Customer
Satisfaction (CS)
23

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Variables

Model

Entered

a
b.
c.
d.

R2

Adjusted R
Square

Std. Error of the


Estimate
est

0.772

0.597

0.595

0.462

Removed

SCc,d

1.

Dependent Variable: Customer Satisfaction


Method: Enter
Independent Variables: (Constant), System Credibility
All requested variables entered.

Source: Field Data


Herein the output extracted, R is the simple correlation value 0.772; w.r.t Customer
Satisfaction as a dependent variable, and System Credibility as an independent variable, from
the table 4.7. The R2 is a coefficient of determination value indicating that System Credibility
can explain the variances in the correlation of Customer Satisfaction by 59.7% or 59.5% as
adjusted value and 40.5% of those differences remain unexplained in the error term.
However, the accuracy of prediction from the Standard Error of the estimate can be observed
is quite good. Regression coefficient summary has been tabulated in the table 14.
Table 14:

Regression Coefficient Summarya between System Credibility (SC) and


Customer Satisfaction (CS)

Model

1.

(Constant)
SC

Unstandardized Coefficients

Std. Error

0.608
0.862

0.162
0.045

Standardized
Coefficient
()

0.772

t Stat

Sig.

3.745
19.157

0.000
0.000

a. Dependent Variable: Customer Satisfaction.


Source: Field Data.
From the table it can be summarized as the table provides the information to predict Customer
Satisfaction from System Credibility. It is evident, that both constant and System Credibility
(SC) contribute significantly to the model. By looking at the B column, under the
unstandardized coefficients column, the constant 0.608 is an intercept value which is also a
predicted value of Customer Satisfaction, when System Credibility is treated as 0. The
regression coefficient slope 0.862 claims that the change in Customer Satisfaction, when a
change takes place in System Credibility. Hence, the regression equation for Customer
Satisfaction can be identified as:
Customer Satisfaction = 0 + 0.862 (SC)
= 0.862 (SC)
24

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Also, from the equation, it can be stated that Customer Satisfaction differs 0.435 times for
every portion difference with the Credibility of the System. Standard error of coefficient for
Customer Satisfaction is 0.045. A 95% confidence interval for the regression coefficient for
Customer Satisfaction can be conducted as:
Confidence Interval = (0.862 + k (0.045))
where k is the appropriate percentile of the t distribution with degrees of freedom equal to the
Error DF from the ANOVA table and is a standard value 1.96 (for large sample size).
Standardized Coefficient Beta () is what the regression coefficient would be if the model
were fitted to standardized the data. Herein, 0.772 is the expected regression coefficient
subject to be fitted with the model. From the t-value it can be observed as well that the two
variables hold correlation. Also, the significant or p-value of 0.000, means that the
relationship among the variables is 100% real. Figure 4.3 explains the linearity between the
two variables i.e. System Credibility and Customer Satisfaction. The linear curve will be:
Figure 4: The Scattered Graph showing regression line between SC and CS.

Source: Field Data


From the figure, it can be concluded that the Correlation = r = 0.772, so there is a very strong
increasing positive linear relationship between System Credibility and Customer Satisfaction.
Hence, the third Research Hypothesis too of the study is valid that there is a significant and
positive relationship between System Credibility and Customer Satisfaction.
Table

Model

15:

Regression
Model
Summarya,b
between
Electronic
(EB=(CA+OSQ+SC)/3) and Customer Satisfaction (CS)
Variables

Entered
1.

EBc,d

Banking

R2

Adjusted R
Square

Std. Error of the


Estimate
est

0.721

0.520

0.518

0.504

Removed

25

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

a.
b.
c.
d.

Dependent Variable: Customer Satisfaction


Method: Enter
Independent Variables: (Constant), Electronic Banking
All requested variables entered.

Source: Field Data


Herein the output extracted, R is the simple correlation value 0.721; w.r.t Customer
Satisfaction as a dependent variable, and usage of Electronic Banking as an independent
variable, from the table 4.7 (the correlation analysis). The R2 is a coefficient of determination
value indicating that the Awareness of Customers, and Quality of Online Service being
delivered through E-Banking along with the Credibility of a system collectively can explain
the variances in the correlation of Customer Satisfaction by 52.0% or 51.8% as adjusted value
and 48.2% of those differences remain unexplained in the error term. However, the accuracy
of prediction from the Standard Error of the estimate can be observed is somehow reasonable.
Regression coefficient summary has been tabulated in the table 4.15.
Table 16:

Regression Coefficient Summarya between Electronic Banking (EB =


(CA+OSQ+SC)/3) and Customer Satisfaction (CS)

Model

1.

(Constant)
EB

Unstandardized Coefficients

Std. Error

0.483
0.926

0.197
0.056

Standardized
Coefficient
()

0.721

t Stat

Sig.

2.456
16.401

0.015
0.000

a. Dependent Variable: Customer Satisfaction


Source: Field Data
From the table it can be summarized as the table provides the information to predict Customer
Satisfaction from usage of Electronic Banking. It is evident, that both Constant and Electronic
Banking (EB) contribute significantly to the model. By looking at the B column, under the
unstandardized coefficients column, the constant 0.483 is an intercept value which is also a
predicted value of Customer Satisfaction, when Electronic Banking is treated as 0. The
regression coefficient slope 0.926 claims that the change in Customer Satisfaction, when a
change takes place in the Awareness of Customers, and Quality of Online Service being
delivered through E-Banking along with the Credibility of a system collectively as Electronic
Banking. Hence, the regression equation for Customer Satisfaction can be identified as:
Customer Satisfaction = 0 + 0.926 (EB)
= 0.926 (EB)
Also, from the equation, it can be stated that Customer Satisfaction differs 0.926 times for
every portion difference with the perception towards. Standard error of coefficient for
Customer Satisfaction is 0.056. A 95% confidence interval for the regression coefficient for
Customer Satisfaction can be conducted as:
26

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Confidence Interval = (0.926 + k (0.056))


where k is the appropriate percentile of the t distribution with degrees of freedom equal to the
Error DF from the ANOVA table and is a standard value 1.96 (for large sample size).
Standardized Coefficient Beta () is what the regression coefficient would be if the model
were fitted to standardized the data. Herein, 0.721 is the expected regression coefficient
subject to be fitted with the model. From the t-value it can be observed as well that the two
variables hold correlation. Also, the significant value for constant is 0.015 which is however
significant and p-value of EB is 0.000, means that the relationship among the variables is
100% real. Figure 4.4 explains the linearity between the two variables i.e. Electronic Baking
and Customer Satisfaction. The linear curve will be:

Figure 5: The Scattered Graph showing regression line between EB and CS


Source: Field Data

From the figure, it can be concluded that the Correlation = r = 0.721, so there is a very strong
increasing positive linear relationship between Customer Awareness and Customer
Satisfaction. Hence, the last and fourth Research Hypothesis of the study is also valid that
there is a significant and positive relationship between Electronic Banking and Customer
Satisfaction.
An ANOVA is a statistical method used to compare the means of two or more groups by
evaluating the variation associated with certain degrees of freedom to figure out the expected
value while pointing out the overlaps between the groups.
27

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Table 17: Analysis of Variance (ANOVAa) for between Customer Awareness (CA) and
Customer Satisfaction (CS)
Modela
Regression
Residual
Total
a.
b.

Sum of Squares

Df

Mean Square

Sig.

27.476
104.186
131.662

1
248
249

27.476
0.420

65.403

0.000b

Dependent Variable: CS
Predictors: (Constant), CA

Source: Field Data


Since F value is large, due to the large variance between the groups mean, so less is the
overlap between the means of two variables and so the sample means are far apart. In other
words, the significant value is shown 0 for Customer Awareness, explaining that there is a
statistically significant difference between the means of Customer Awareness and Customer
Satisfaction.

Table 18: Analysis of Variance (ANOVAa) for between Online Service Quality (OSQ) and
Customer Satisfaction (CS)
Modela
Regression
Residual
Total
a.
b.

Sum of Squares

Df

Mean Square

Sig.

49.875
81.788
131.662

1
248
249

49.875
0.330

151.233

0.000b

Dependent Variable: CS
Predictors: (Constant), OSQ

Source: Field Data


F value is quite large, due to the large variance between the groups mean, so the overlap
between the means of two variables is very small portraying the sample means are far apart.
In other words, the significant value is shown 0 for Online Service Quality, explaining that
there is a statistically significant difference between the means of Online Service Quality and
Customer Satisfaction.
Table 19:
Modela
Regression
Residual
Total

Analysis of Variance (ANOVAa) for between System Credibility (SC) and


Customer Satisfaction (CS)
Sum of Squares

Df

Mean Square

Sig.

78.568
53.095
131.662

1
248
249

78.568
0.214

366.982

0.000b

28

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

a.
b.

Dependent Variable: CS
Predictors: (Constant), SC

Source: Field Data


From the table 19, it can be observed that F value is quite large, due to the large variance
between the groups mean, so the overlap between the means of two variables is very small.
Therefore, the sample means are far apart. In other words, the significant value is 0,
explaining that there is a statistically significant difference between the means of System
Credibility and Customer Satisfaction.
Table 20:

Analysis of Variance (ANOVAa) for between Electronic Banking (EB) and


Customer Satisfaction (CS)

Modela

Sum of Squares

Df

Mean Square

Sig.

68.503
63.160
131.662

1
248
249

68.503
0.225

268.978

0.000b

Regression
Residual
Total
a.
b.

Dependent Variable: CS
Predictors: (Constant), EB={(CA+OSQ+SC)/3}

Source: Field Data


It can be observed from the table 20 that F value is large, due to the large variance between
the groups mean, so less is the overlap between the means of two variables and so the sample
means are far apart. In other words, the significant value is 0, explaining that there is a
statistically significant difference between the means of Electronic Banking and Customer
Satisfaction.
In Pakistan, (SBP, 2012, p.72) there are 38 scheduled banks currently working in Pakistan, as
on updated till June 30th, 2012 along with 9,838 branches. According to the nature of delivery
of services and the origin, banks have been classified in 4 different categories. Table 4.20
explains the sector wise classification of Banks in Pakistan.
Table 21: Sector wise Classification of Banks in Pakistan
Banking Category according to
Banking Sector
Ownership / Services
Public Sector Commercial
Nationalized, Denationalized, and
Banks (PSCB
Provincial Commercial Banks
Local Private Banks (LPB)

Private Sector Banks Incorporated in


Pakistan

Foreign Banks (FB)

Banks Incorporated Outside from


Pakistan
Specialized Banks, Micro finance,
DFIs

Specialized Banks (SB)

No. of
Banks
5

Total
Branches

22

7,498

46

546

1,748

Total
38
9,838
Source: Statistics & Data Warehouse Department, SBP Annual Report FY12 (p.72)
29

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Having a skimmed view on the classification of banks; Public Sector Commercial banks
include 5 banks that holds 1,748 branches in Pakistan. Local Private Banks have largely
introduced themselves in pakistan, heading to 22 banks in total holding 7,498 branches. It can
be concluded that during past few years Local Private Banks stepped in the banking industry
to counter the foreign banks which were getting indulged in early 90s. Foreign Banks,
however, are working with 7 banks running with 46 branches. Later, another sector was
introduced names as Specialized Banks counting to 4 in number holding 546 branches in
Pakistan. The Pie representation of Sector wise Classification of Banks in Pakistan can be
represented in Figure 6.
Figure 6: Pie Representation of Sector Wise Bank Classification

Source: Statistics & Data Warehouse Department, SBP Annual Report FY12
However, during the first quarter (Jul-Sep, 2012) of FY13, (Payment System Review, 2013,
p.1) updated that electronic banking infrastructure has maintained the increasing development
trend. In terms of ATM, 242 more machines have been added in the system raising the total to
5,987. Also, 121 bank branches have been added to RTOBs, leading to 9,412 out of 10,111
bank branches across the country. Commercial banks in Pakistan have started to broaden their
service delivery system to their customers through using electronic banking. During last two
years, a strong improvement has been observed in the banking sector in Pakistan especially in
terms of Electronic Banking. A skimmed view on the detailed statistics of infrastructure in
terms of usage of Electronic Banking during last three years is illustrated in the table 22.

30

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A Comparative Analysis on Pakistani Banking Sector. Bulletin of
Business and Economics, 1(1), 1-43.

Table 22:
Item

E-Banking Growth Trend - Yearly Comparison w.r.t. Infrastructure


As of September 30
As of September 30
As of September 30
2010
2011
2012

Yearly Growth
(2010-11)

Yearly Growth
(2011-12)

RTOB

6,727

7,885

9,412

17%

19%

ATM

4,562

5,318

5,987

17%

13%

POS

48,632

36,473

34,229

-25%

-6%

Credit Cards
(000)

1,677

1,363

1,274

-19%

-7%

Debit Cards
(000)

8,697

12,553

17,588

44%

40%

ATM Only
Cards (000)

693

613

806

-12%

32%

Source: Payment System Review (Statement Bank of Pakistan)


1. SBP Payment System Review (FY12) 1st Qtr. Jul - Sep 2011
2. SBP Payment System Review (FY13) 1st Qtr. Jul - Sep 2012
The review also added that during last three years, transactions conducted through electronic banking in the country too sustained the increasing
progress trend. Numeric details are being illustrated in the table 23.

31

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A Comparative Analysis on Pakistani Banking Sector. Bulletin of
Business and Economics, 1(1), 1-43.

Table 23: E-Banking Growth Trend - Yearly Comparison w.r.t Transaction


Qtr1 FY11
Qtr1 FY12
(Jul-Sep 2010)
(Jul-Sep 2011)
Item
Volume
Value
Value
Volume
(000)
(Rs.
(Rs.
(000)
Billion)
Billion)

Qtr1 FY13
(Jul-Sep 2012)
Value
Volume
(Rs.
(000)
Billion)

RTOB

16,458.93

4,329.08

19,598.66

5,694.49

23,679.53

ATM

30,934.41

262.52

38,805.23

353.51

POS

3,426.87

15.76

4,137.25

Call Center

214.58

1.85

Internet Banking

871.78

MB via Internet*
E-Banking

Yearly Growth
2010-11

Yearly Growth
2011-12

Volume

Value

Volume

5,899.75

19%

32%

21%

4%

43,876.79

430.42

20%

30%

13%

22%

18.01

4,328.83

20.77

21%

14%

5%

15%

169.82

1.79

166.06

2.09

-21%

-3%

-2%

17%

39.18

1,646.70

84.85

2,018.78

109.95

89%

117%

23%

30%

678.15

1.78

909.96

2.94

804.17

4.18

57%

140%

-12%

42%

52,584.72

4,650.17

65,267.63

6,155.57

74,874.16

6,467.16

21%

32%

15%

5%

Source: Payment System Review (Statement Bank of Pakistan)


1. SBP Payment System Review (FY12) 1st Qtr. Jul - Sep 2011
2. SBP Payment System Review (FY13) 1st Qtr. Jul - Sep 2012

32

Value

During last three years, the volume and value of overall transaction using electronic banking
depicted an average growth of 142.8 million and 13 trillion respectively. Looking at the
transaction value and volume made through ATM, the average growth noticed 843.6 million and
7.5 trillion respectively. Likewise, Internet Banking, Call Centres, Mobile Banking through
Internet has also increased tremendously. In other words, talking about the Awareness of
Customer, Credibility of a System along with the Quality of Online Services has played a major
role in adapting the technology. Yet, this trend has been observed in some targeted customers
from urban area who have just turned their banking activity through online banking. Table 4.23
explains the comparative analysis on randomly selected banks in the country.
Table 24: A Comparative Analysis on Randomly Selected Banks in Pakistan
NBP HBL UBL BAL
Sr#
Components
1
2
3
4

DIB5 SCB6

1.

Legal Statement Security Policy


Legal Disclaimer

Y
Y

Y
Y

Y
Y

Y
Y

Y
Y

Y
Y

2.

Website

Informational
Transactional

Y
-

Y
Y

Y
Y

Y
-

Y
Y

Y
Y

3.

E-Banking
Services

ATM
Debit / Cash Card
Credit Cards
Internet Banking
Mobile/SMS Banking
Telephone Banking
TV Banking
Call Centre
SMS Alert/ Service
Account Statement
Balance Enquiry
Inter Account Funds
Transfer
Third Party Funds Transfer
Bill Payment
Cash Deposit to Own
Cash Deposit to Third
Party
Cash With drawl through
Cheque
Opening Accounts
E-Shopping
Loan Application
Insurance
Brokerage
Remittances
Forex Rates
ATM Card Pin Change

Y
Y
Y
Y
Y
Y

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

Y
Y
Y
Y
Y
Y
Y
Y
Y

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y

Y
Y
Y

Y
Y
Y
Y

Y
Y
Y
Y

Y
Y
Y
Y

Y
Y
Y
Y

Y
Y
Y
Y

Y
Y
Y
Y
Y
Y
Y
Y

Y
Y
Y
Y
Y
Y
Y
Y

Y
Y

Y
Y
Y
Y
Y
Y
Y
Y

Y
Y
Y
Y
Y
Y
Y
Y

33

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

Banking Procedure Guide


Account Management
Stop Payment
4.

5.

Infrastructure

Ease of Use

Y
Y

Y
Y
Y

Y
Y
Y

Y
Y

Y
Y
Y

Y
Y
Y

ATM

230

5,000

388

50+

RTOBs
Branches
Overseas Branches
(Outside Pakistan)

1295
23

<NA
>
1450
1450
55

1300
1300
15

471
471
8

125
125
<N
A>

<NA
>
162
162
1538

FAQs
Tutorial / Demonstration /
User Guide

Y
Y

Y
Y

Y
Y

Y
Y

Y
Y

Y
Y

Search / Help Function


Navigational Buttons
/Menu

Y
Y

Y
Y

Y
Y

Y
Y

Y
Y

Y
Y

6.

Aesthetic Effects Graphics


Animations

Y
-

Y
-

Y
Y

Y
-

Y
-

Y
Y

7.

Performance

Website Quick
Navigation
Quick Load

1. (NBP) National bank of Pakistan www.nbp.com.pk


2. (HBL) Habib Bank Limited www.hbl.com.pk, www.hblibank.com.com
3. (UBL) United Bank Limited www.ubl.com.pk, https://www.ubldirect.com/
Corporate/ebank.aspx
4. (BAL) Bank Alfalah Limited http://www.bankalfalah.com/
5. (DIB) Dubai Islamic Bank http://www.dibpak.com/, https://ebank.dibpak.com/ ebank/
6. (SCB) Standard Chartered Bank http://www.standardchartered.com.pk,
https://online.standardchartered.com/nfs/ibank/pk/foa/login.htm
Source: Field Data
Having a skimmed view on the table 24, an analysis has been on randomly selected banks.
Starting with legal statement, every bank has some security policy and has certain disclaimer as
well. Moving further, the understudy banks are hosting two kinds of web interfaces. One is
Informational Web Interface (IWI) for the Awareness of the Customers and Visitors and second
is the Transactional Web Interface (TWI) for the customers to have an access to their account
online. However, the two banks i.e. National Bank of Pakistan and Bank Alfalah Limited doesnt
offer Internet Banking and thus dont have Transactional Web Interface. The web interfaces have
been designed to provide friendly interaction between the information provided by the banks and
the customer of the bank provided with Frequently Asked Questions (FAQs), user guide,
searching facility to explore the contents of the bank services along with stylish looks and
navigational menus. Graphically all web pages are strong, yet animations have been provided
either on UBL page or on SCB making their look and feel attractive for the customers to hover
34

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

around. It is noteworthy to mention that the response, loading and navigation time of web
interfaces is quick.
Moving through to services offered under the umbrella of e-banking, ATM, Cash Card, Call
Centre, Account Statement, Balance Enquiry, Inter Account and Third Party Funds Transfer,
Cash Deposit to own and to Third Party, cash With drawl, ATM Pin Change, Account
Management, stoppage of payment is being offered by every bank understudy. However, Credit
Card, Telephone Banking, SMS Alert, Bill Payment, and E-Shopping is absent in services being
offered by NBP. On the other hand, talking about Internet Banking, Mobile Banking, Opening of
New Account, Application for Loan, Insurance, Brokerage, Remittance, Forex Rates, and
Banking Procedure Guide are absent in both NBP and BAL. Another important aspect is
electronic banking infrastructure in terms of ATMs and RTOBs. ATMs are there to represent
their parent banks to facilitate the customers of the bank, though number of their availability is
varied. However, considering e-banking in terms of RTOBs (Real Time Online Branches), they
are absent in NBP Branches. Resultantly, customers have to suffer the issues regarding the with
drawl of payment as branches are not connected with each other neither they are centrally
connected, and the customers can only with draw or meet their cash demands only from the
respective account holder branch. TV Banking is a new technology that has been introduced by
HSBC bank which was later adapted by ICICI India. Yet, no bank is offering TV Banking in
Pakistan.
VI. Conclusions and Recommendations
The present study statures the current status of electronic banking in Pakistan and its impact
towards the usage and also its impression on satisfaction of customers of the banks. Further,
based on the outcomes from the data gathered on the primary scale, the study portrays the results
of survey conducted on the level of engagement of Electronic banking in the minds of the
customers. Findings of the study conducted, are not contradictory to the studies made in the past
pertaining to the variables towards the usage of electronic banking and satisfaction of customers.
For instance, it is understood that Credibility of a System is extremely influential since, if the
credibility of the system is weak, no one will take risk to conduct any financial transaction online.
It is important to note that the variable System Credibility has been endorsed in numerous
researches. However, Customer Awareness and Online System Quality have strong influence in
raising the motivation among the customers and have strong significant impact on successful
implementation of electronic banking and on satisfaction of customers.
The main purpose of the study is to highlight those variables which are considered to be the major
players in raising the satisfaction of customers in Pakistan. In the past, the financial institutions in
Pakistan used to have Internet to show their presence and provide information regarding the
product and services being offered by the bank. However, during the past recent years, numerous
banks have started to offer Internet Banking as well to cater the customers and promote their
image as a friendly institution and to facilitate their customers while allowing them to perform
banking activities without visiting the bank. From the research, it has been observed that
customers who have availed the service are enjoying the benefits yet they feel bit uncomfortable
in terms of Online Service Quality. The customers have shown their concerns about the timely
response of personals. Many of the customers have raised the objection that not all utility services
have been enlisted in the options of Internet Banking. Also, customers do have awareness but not
on a large scale. Awareness among the customers using electronic banking services is quite high
but use of Internet or Mobile Banking is a new trend and experience, and customers are reluctant
to work freely with the new environment. Thus, they still are confused to perform the
35

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

transactional activity online. However, they believe that the banks do have System Credibility
and they are comfortable with the banks in dealing. Yet again, many customers show reluctance
in using Internet Banking for their low confidence on using it freely.
Summing up the discussion, the results of the study are conformed to the studies made earlier in
this regard, ensures that the identified factors are scrutinized as essential instruments which do
not only confirm the successful implementation of electronic banking in Pakistan but will also
raise the level of satisfaction among the customers towards the usage of e-banking. Thus, the
Customer Awareness, Online Service Quality and Credibility of a System in individual capacity
and collectively in terms of Electronic Banking, all are positively correlated with Customer
Satisfaction, which is very necessary to attract the customer towards any introduced product in
the Pakistani market.
VII. References
1.
Afuah, A. (2003). Innovation Management, New York, Oxford University Press.
2.
Agarwal, R., & Prasad, J. (1998). The antecedents and consequents of user perceptions
in information technology adoption. Decision Support Systems, 22(1), 15-29.
3.
Akpan, I. (2009). Cross channel integration and optimization in Nigerian banks. Telnet
Press Release, 20(1), 1-4.
4.
Aladwani, A.M. (2001). Online banking: a field study of drivers, development
challenges, and expectations. International Journal of Information Management, 21,
213-225.
5.
Alam, N., Magboul, I., and Raman, M. (2010). Challenges Faced by Sudanese Banks in
Implementing Online Banking: Bankers Perception. Journal of Internet Banking and
Commerce, 15(2).
6.
Allen, F. McAndrews, J., & Strahan, P. (2001). E-Finance: An introduction. The
Wharton School, University of Pennsylvania.
7.
Alsajjan, B. and Dennis, C. (2006). The Impact of trust on acceptance of online
banking. European Association of Education and Research in Commercial Distribution,
Brunel University, UK.
8.
American Banker. (2001). Rationale for online banking starts to shift. Case Study,
166(48), para 6A.
9.
Ayo, C. K. Adebiyi A. A., Fatudimu I.T., Ekong O.U. (2008). Framework for eCommerce Implementation: Nigeria a Case Study. Journal of Internet Banking and
Commerce, 13(2).
10. Banks, Erik. (2001). E-Finance: The Electronic Revolution in Financial Services. John
Wiley & Sons, Ltd
11. Barnes, JG, Howlett, DM. (1998). Predictors of equity in relationships between
financial services providers and retail customers. International Journal of Bank
Marketing, 16, 15-23.
12. Barto, G.L. (1999). E-banking 1999: new model of banking emerges, Gartner Group,
Stamford, CT.
13. Basel Committee Report. (1998). Banking Supervision & Risk management for
electronic banking and electronic money activities. Bank of International Settlements,
Switzerland.
14. Bauer, H.H., Hammerschmidt, M. and Falk, T. (2005). Measuring the quality of ebanking portals. International Journal of Bank Marketing, 23(2), 153-75.
36

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

15.

16.
17.

18.

19.
20.
21.
22.
23.

24.

25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.

Bauer, Christian. (1999). Financial Institutions and the Internet: Issues and Trends.In:
F. Sudweeks and C. Romm (eds.) Doing Business on the Internet: Opportunities and
Pitfalls. Springer-Verlag London Ltd. 65-75.
Benamati and Serva. (2007). Trust and Distrust in Online Banking: Their Role in
Developing Countries Information Technology for Development, 13(2), 161-175.
Birch, D., & Young, M. A. (1997). Financial services and the Internet, What does
cyberspace mean for the financial services industry. Internet Research: Electronic
Networking Applications and Policy, 7(2), 120-128.
Black, N.J., Lockett, A., Winklhofer, H. and McKechnie, S. (2002). Modeling
consumer choice of distribution channels: an illustration from financial services. The
International Journal of Bank Marketing, 20(4), 161-173.
Blackwell RD, Miniard PW and Engel JF. (2001). Consumer Behavior 9th Ed, Fort
Worth, Dryden Press.
Bradley, L. and Stewart, K. (2003). The diffusion of online banking. Journal of
Marketing Management, 19(9/10), 1087-1109.
Bradley, L and Stewart, K. (2003). Delphi Study of Internet banking. Marketing
intelligence and planning, 21(5), 272-281.
Burr, W. (1996). Wie Information technik die bank organization verandern Konnte,
Bank und Markt, 11, 28-31.
Casal, L. V., Flavin, C., & Guinalu, M. (2007). The role of security, privacy,
usability and reputation in the development of online banking. Online Information
Review, 31(5), 583-603.
Christopher, G. C., Mike, L., Limsombunchai, V., and Weng, A. (2006). A Logit
Analysis of Electronic Banking in New Zealand. International Journal of Bank, 24,
360-383.
Claessens, S., Glaessner, T., & Klingebiel, D. (2001). E-Finance in emerging markets:
Is leapfrogging possible. World Bank.
Claessens, S., Glaessner, T., & Klingebiel, D. (2000). Electronic Finance: Reshaping
the Financial Landscape Around the World. World Bank
Colgate, M; Nguyen, V. and Lee, C. (2003). Switching barriers in New Zealand.
University of Auckland, 5(1), 23- 32.
Cooper, R.G. (1997). Examining some myths about new product winners. The human
side of managing technological innovation, Oxford, 550-60.
Creswell, J.W. (2008). Research Design: Qualitative, Quantitative, and Mixed Methods
Approaches.
Cunningham, P and Froschl, F. (1999). Electronic Business Revolution: Opportunities
and Challenges in the 21st Century. Springer-Verlag Berlin Heidelberg.
Daniel, E. (1999). Provision of electronic banking in the UK and Republic of Ireland.
International journal of bank marketing, 17 (2), 72-82.
Dannenberg, M., & Kellner, D. (1998). The bank of tomorrow with todays technology.
International Journal of Bank Marketing, 16(2), 90-97.
E-banking deals rise to Rs6.5tr. (2013, January 2). Dawn.com. Retrieved January 3,
2013 from
Delvin, J. (1995). Technology and Innovation in Retail Banking Distribution.
International Journal of Bank Marketing, 13(19-25).
Dewan, R., Freimer, M., & Seidmann, A. (2000). Organizing distribution channels for
information goods on the Internet. Management Science, 46(4), 483-495.
37

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.

55.
56.

57.

DeYoung, R. (2001). The Financial Performance of Pure Play Internet Banks. Federal
Reserve Bank of Chicago, Economic Perspectives 25(1), 60-75.
Diniz, E. (1998). Web Banking in USA. Journal of Internet Banking and Commerce,
3(2).
Dixit, N. and Datta, S. (2010). Acceptance of E-Banking among Adult Customers: An
Empirical Investigation in India. Journal of Internet Banking and Commerce 15(2).
Egwali A. O. (2008). Customer perception of security indicators in online banking sites
in Nigeria. Journal of internet banking and commerce, 13(3).
Ezeoha A. E. (2005). Regulating Internet Banking In Nigeria: Problems and
Challenges. Journal of Internet Banking and Commerce, 11(1).
Ezio, G. (2008) Authentication solution for e-banking. New York: Prentice-Hall.
Fonseca Isabella, Hickman Meredith and Marenzi Octavio. (2001). Future of wholesale
banking: The portal. Commercial Lending Review, Boston.
FNB Brochure. (2001). Electronic Banking Features and Functions. International
Article, 23.
Gandy, A. (1999). Rules of survival in a new age of delivery channels. Financial
World, 20-49.
George, D., & Mallery, P. (2003). SPSS for Windows step by step: A simple guide and
reference. 11.0 update (4th ed.). Boston: Allyn & Bacon.
Gerrard, P. and J.B. Cunningham. (2003). The Diffusion of Internet Banking among
Singapore Consumers. International journal of bank marketing, 21(1), 16-28.
Gibson, J., Ivancevich, J., Donnelly, J. (1997). Organizations: Behavior, Structure, and
Processes. Ed 9. Times Mirror Higher Education Group, Inc.
Giese, J., and Cote, J. (2002). Defining Consumer Satisfaction, 2000(1). Academy of
Marketing Science Review.
Gonzalez, M. E. (2008). An Alternative Approach in Service Quality: An E-Banking
Case Study, Quality Manage, 15, 41-48
Grnroos, C. (1982). Strategic Management and Marketing in the Service Sector.
Marketing Science, Cambridge, MA.
Hanudin A. (2007). Internet banking adoption among young intellectuals. Journal of
internet banking and commerce, 12(3).
Hoffman, D.L. and Novak T.P. (1996). Marketing in hypermedia computer mediated
environments: conceptual foundations. Journal of Marketing, 60, 50-68.
Horst, T. Andreas, P. & Arne, F. (2008). Success factors of internet payment systems.
International journal of electronic business 6(4), 365-385.
Howcroft, B., Hamilton, R. and Hewer, P. (2002). Consumer attitude and the usage and
adoption of home-based banking in the United Kingdom. The International Journal of
Bank Marketing, 20(3), 111-121.
Hua,G. (2009).An Experimental Investigation of Online Banking Adoption in China.
Journal of Internet Banking and Commerce, 14(1).
Huang, X., Soutar, G.N., & Brown, A. (2004). Measuring new product success: An
empirical investigation of Australian SMEs. Industrial Marketing Management, 33(2),
117123.
Huang, Z.M., Charnes, A., Cooper, W.W., and Sun, D.B. (1990). Polyhedral cone:
Ratio DEA models with an illustrative application to large commercial banks. Journal
of Econometrics, 46(1-2), 73-91.

38

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

58.

59.
60.

61.

62.

63.

64.

65.

66.
67.
68.
69.
70.

71.
72.
73.
74.

75.
76.

Hughes, T. (2001). Market orientation and the response of UK financial services


companies to changes in Market conditions as a result e-commerce. International
Journal of Bank Marketing, 19(6), 222-231
Hussam A. Al-Abed, Richard Insley, and Trent Fleming. (2003). Retrieved on August
18, 2003 from: http://www.bankersonline.com/technology/gurus_ tech081803d.html.
Hussein, A. (2010). 45% growth in online banking in Pakistan. Retrieved on October
08, 2010 from: http://www.dailytimes.com.pk/default.asp? page=2006/5C04/5C25/5C
story_25-4-2006_pg5_2
Ibrahim, E.E., Joseph, M and Ibeh, K.I.N. (2006). Customers perception of electronic
service delivery in the UK retail banking sector. International Journal of Bank
Marketing, 24(7), 475-493.
Internet World Stats. (2012). Internet Usage Statistics: the Internet big picture.
Miniwatts Marketing Group. Retrieved January 17, 2013 from Usage and Population
Statistics.
Jane, M.K., Hogarth, J.M and Hilgert, M.A. (2004). The Adoption of Electronic
Banking Technologies by US Consumers. International Journal of Bank Marketing,
22(4), 238-259.
Jasimuddin, Sajjad M. (2001). Saudi Arabian Banks on the Web. Journal of Internet
Banking
and
Commerce.
Available
from:
http://www.arrgydev.com/commerce/jibc/0103_02.htm
Johnston, R. (1997). Identifying the critical determinant of service quality in retail
banking: importance and effect. International Journal of bank marketing, 15(4), 111116.
Jones, T. and Sasser, E. (1995). Why Satisfied Customers Defect. Harvard Business
Review, p.8.
Jun, M. and Cai, S. (2001). The key determinants of internet banking service quality: a
content analysis. International Journal of Banking Marketing, 19(7), 276-291.
Kalakota, Ravi and Robinson, Marcia. (1999). E-Business: Roadmap for Success.
Addison-Wesley, United States, 110-140.
Kaleem and Ahmad. (2008). Banks Perception of Electronic Banking in Pakistan.
Journal of Internet Banking and Commerce, 13(1), pg.3
Karjaluoto, H., Matilla, M. and Pento, T. (2002). Factors underlying attitude formation
toward online banking in Finland. International Journal of Bank Marketing, 20(6), 261272.
Kazmi, S.H. (2002). Pakistans e-banking initiative: Emerging e-economy changing the
way banking is done. Retrieved November 04, 2002, from Pakistan Economist.
Kolachi, N. (2006). Internet banking system in Pakistan: some crucial weaknesses and
suggestions for improvement. Journal of Institute of Bankers Pakistan, 73(2), 23 - 32.
Kotler, P. (2003). Marketing Management. International Edition, Prentice Hall.
Kumar, R., and Ravindran, S. (2012). An Empirical Study on Service Quality
Perceptions and Continuance Intention in Mobile Banking Context in India. Journal of
Internet Banking and Commerce, 17(1).
Laforet, S and Li, X. (2005). Consumers attitude towards online and mobile banking
in China. International Journal of Bank Marketing, 23(5), 362-80.
Lawrence, E., Corbitt, B., Tidwell A., Fisher. J. and Lawrence, J. (2000). Internet
Commerce: Digital Models for Business (2nd Ed. John Wiley & Sons, Brisbane,
Australia), p.167.
39

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

77.
78.
79.
80.
81.
82.
83.

84.

85.
86.

87.

88.
89.
90.

91.
92.
93.
94.
95.
96.

Lawrence, E., Newton, S., Corbitt, B., Braithwaite, R., and Parker, C. (2002).
Technology of Internet Business. John Wiley & Sons, Brisbane, Australia, p.15.
Lee, M.K.O., & Turban, E.(2001)., A trust model for consumer internet shopping,
International Journal of Electronic Commerce, 6 (1), 75-91.
Liao, Z and Cheung, M.T. (2008). Measuring Customer Satisfaction in Internet
Banking; a Core Framework. Communications of the ACM, Vol. 51, No. 4, pp. 47-51.
Liao, Z. and M.T. Cheung. (2003). Challenges to Internet E-banking. Communications
of the ACM, 46(12), 248-250.
Liao, Z. and M.T. Cheung. (2002). Internet-Based and Consumer Attributes: An
Empirical Study. Information & Management, 39, 283-295.
Lin, C.C. (2003). A critical appraisal of customer satisfaction and e-commerce.
Managerial Auditing Journal, 18(3).
Lymperopoulos, C, and Chaniotakis, E. (2004). Branch employees perceptions
towards implications of e-banking in Greece. International Journal of Retail &
Distribution Management 32(6), 302-311.
Majali, M., and Kamariah, N. (2011). Modeling the Antecedents of Internet Banking
Service Adoption (IBSA) in Jordan: A Structural Equation Modeling (SEM) Approach.
Journal of Internet Banking and Commerce, 16(1).
Malhotra, P. and Singh, B. (2007). Determinants of Internet Banking Adoption by
Banks in India. Emerald Internet Research 17(3), 323-339.
Matilla (2003). Factors affecting the adoption of mobile banking services. Journal of
internet banking and commerce, retrieved from http://www.arraydev.com/
commerce/jibc/0306-04.htm
Mohammed, S. K., Sankar, S.M. and Kumar, S. (2009). Service Quality Evaluation in
Internet Banking: An Empirical Study in India. International Journal of Indian Culture
and Business Management, 2(1).
Mols, N., Bukh, P and Neilsen, J. (1999). Distribution channel strategies in Danish
retail banking. International Journal of Bank Marketing, 27(1), 37-47.
Mukherjee, A. and Nath, P. (2003). A model of trust in Online Relationship banking.
International journal of banking 21(1), 28-35.
Muniruddeen L. (2007). An Examination of Individuals Perceived Security and
Privacy of the Internet in Malaysia and the Influence of This on Their Intention to Use
E-Commerce: Using An Extension of the Technology Acceptance Model. Journal of
Internet Banking and Commerce, 12(3).
Newton, S. (2000). Managing with m-commerce: a case study of NDC limited. Level
67, MLC Centre, Martin Place, Sydney.
Nsouli, S.M.; and Schaechter, A. (2002). Challenges of the E-Banking Revolution.
Finance & Development, 39(3).
Nunnally, J. (1978). Psychometric Theory (2nd ed). New York: McGraw-Hill.
Olalekan, A. (2011). E-Banking Patronage in Nigeria: An Exploratory Study of Gender
Difference. Business Intelligence Journal, 4(2).
Olufunke, O. (2010). Computer Crimes and Counter Measures in the Nigerian Banking
Sector. Journal of Internet Banking and Commerce, 15(1).
Parasuraman, A and Zinkhan, G.M. (2002). Marketing To and Serving Customers
through the Internet: An Overview and Research Agenda. Journal of the Academy of
Marketing Science, 30(4), 286-95.

40

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

97.

98.
99.
100.
101.

102.

103.
104.

105.
106.
107.
108.
109.

110.

111.

112.

113.
114.
115.
116.

Parasuraman, A., Zeithamal, V.A., and Berry, L.L. (1988). SERVQUAL: A multiple
item scale for measuring consumer perceptions of service quality. Journal of Retailing,
64(1).
Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1985). A conceptual model of service
quality and its implications for future research. Journal of Marketing, 49.
Perumal, V and Shanmugan. (2004). Internet Banking: Boone or Bane. Journal of
Internet Banking and Commerce, 19(3).
Peppard, J. (2000). Customer Relationship Management (CRM) in Financial Services.
European Management Journal, 18(3), 312327.
Pikkarainen K, Tero K, Heikki X, Pahnila S (2006). The measurement of end-user
computing satisfaction of online banking services: Empirical evidence from Finland.
Int. J. Bank Mark, 24(3), 158-172.
Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., & Pahnila, S. (2004). Consumer
acceptance of online banking: An extension of the technology acceptance model.
Journal of Internet Research, 52(2), 67-83.
Polasik, M. and Piotr Wisniewski, T. (2008). Empirical analysis of internet banking
adoption in Poland. International Journal of Bank Marketing, 27(1), 32-52.
Polatoglu, V.N. and Ekin, S. (2001). An empirical investigation of the Turkish
consumers acceptance of internet banking services. International Journal of Bank
Marketing, 19(4), 156-165
Potchanakitummiai, S. & Speece, M. (2004). Barriers to internet banking adoption.
Journal of electronic commerce research 5(4), 270-286.
Prakash, A., Malik, G. (2008). Empirical Study of Internet Banking in India. Internet
research, 12(5), 83-92.
Pyun, C. S., Les, S. and Kiseok, N. (2002). Internet banking in the U.S., Japan and
Europe. Multinational Business Review. 10(2), 73.
Ram, S., & Sheth, J.N. (1989). Consumer resistance to innovations: The marketing
problem and its solutions. The Journal of Consumer Marketing, 6(2), 514.
Rotchanakitumnuai, S and Speece, M. (2004). Corporate Customer Perspectives on
Business Value of Thai Internet Banking. Journal of Electronic Commerce Research,
5(4), 270-286.
Rotchanakitumnuai, S and Speece, M. (2003). Barriers to internet banking adoption: a
qualitative study among corporate customers in Thailand. International Journal of Bank
Marketing, 21(6), 312-323.
Sajjad N., Naseer M.A., & Zohaib, M.I. (2011). Why banks and financial institutions in
pakistan are turning towards internet banking. International Journal of Computer
Science, 8(6), 265-274.
Salehi, M., Ali, M. and Zhila, A. (2008). Islamic banking practice and satisfaction:
Empirical evidence from Iran. ACRM Journal of Business and Management Research.
3(2), 35-41.
Sathye, M. (1999). Adoption of internet banking by Australian consumers: an empirical
investigation. International Journal of Bank Marketing, 17(7), 324-334
Savoie, M.J & Raisinghani, M, S. (1999). Identifying Future Trends in Information
Technology. Industrial Management & Data Systems, 99(6), 247-250.
Sayyar C, Wolfe S. (2007). Internet banking market performance: Turkey versus UK.
Int. J. Bank Mark, 25(3): 122-141.
Sohail, M., and Shanmugham, B. (2003). E-banking and customer preferences in
Malaysia: An empirical investigation. Information Sciences, 150(3-4), 207-217.
41

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

117.

118.
119.
120.
121.
122.

123.
124.

125.
126.
127.
128.

129.
130.
131.
132.

133.
134.

135.
136.
137.

138.

State Bank of Pakistan. (2010). Number of online branches reached 6,700 in 2009.
Retrieved on May 14, 2010 from: http://www.dailytimes.com.pk/default.asp?page
=2010/5C03/5C19/5C story_19-3-2010_pg5_16
State Bank of Pakistan. (2013). Payment System Quarterly Review FY13.
State Bank of Pakistan. (2012). State Bank of Pakistan Annual Report.
State Bank of Pakistan, (2000-2006). State Bank of Pakistan annual reports, Karachi,
Pakistan.
State Bank of Pakistan. (2003). State Bank of Pakistan Annual Report.
Seitz, J., & Stickel, E. (1988). Internet Banking: An Overview, Journal of Internet
Banking and Commerce. Retrieved March 3, 2006, from http://www.arraydev.com/
commerce/jibc/9801-8.htm.
Sekaran, U. (2003). Research method for business: a skill building approach, New
York, John Willey & Sons, Inc.
Servon, L.J and Kaestner, R. (2008). Consumer Financial Literacy and the Impact of
Online Banking on the Financial Behavior of Lower-Income Bank Customers. The
Journal of Consumer Affairs, 42(2), 271-395.
Shuttleworth, M. (2008). Definition of Research. Experiment Resources. ExperimentResearch.com.
Sohail M, Sadiq T, Shanmugham, Balachandran AA. (2002). E-banking and customer
preferences in Malaysia: An empirical investigation, 150(7), 207-217
Southard, P.B. and K. Siau. (2004). A Survey of Online E-Banking Retail Initiatives.
Communications of the ACM, 47(10), 99-102.
Stenifield, C., H. Bouwman, and T. Adelaar. (2003). Dynamic of Click-and-Mortar
Electronic Commerce: Opportunities and Management Strategies. International Journal
of Electronic Commerce, 7(1), 93-119.
Sullivan, J. (2000). How has the adoption of internet banking affected performance and
risk in banks. Financial Industry Perspectives, 1-16.
Sullivan, T. (1996). User testing techniques - a reader-friendliness checklist. Retrieved
September 12, 1996 from www.pantos.org/atw/35317.html.
Tan, M., & Teo, T. S. H. (2000). Factors Influencing the Adoption of Internet Banking.
Journal of the AIS, 1(5), 1-42.
Thulani, D., Tofara, C and Langton, R. (2009). Adoption and Use of Internet Banking
in Zimbabwe: An Exploratory Study. Journal of Internet Banking and Commerce,
14(1).
Turban, E., King, D. and Chung, H. M. (2004). Electronic Commerce: A Managerial
Perspective, Prentice-Hall, Inc.
TV Banking, Internet Banking, and PC Banking. (2010). Retrieved September 3, 2010
from
http://www.bizhelp24.com/basics/banks/tv-banking-internet-banking-pcbanking.html
Van der Heijden, H. (2003). Factors influencing the usage of websites: The case of a
generic portal in the Netherlands. Information & Management, 40(6), 541-549.
Van Horn J. (1985). Of Financial Innovations and Excess. The Journal of Finance,
11(3), 621.
Venkatesh, M., Srinath, K., Chand K.V., Praveen, N.S., & Harinath, E.K. (2008).
Internet banking system: Software requirement specification, Retrieved September 15,
2008 from http://www.scribd.com/doc/19074204/Internet-Banking-System.
Venkatesh, V., Morris, M., Davis, G., and Davis, F. (2003). User Acceptance of
Information Technology: Towards a Unified View. MIS Quarterly, 23(3), 425-78.
42

Hunjra, A. I., Ali, A. & Anwar, S. (2012). The Impact of E-Banking on Customer Satisfaction: A
Comparative Analysis on Pakistani Banking Sector. Bulletin of Business and Economics, 1(1), 1-43.

139.
140.
141.
142.
143.

144.

145.
146.
147.

148.

149.
150.

Venkatraman, N. (2000). Five steps to a dot-com strategy: How to find your footing on
the web. Sloan Management Review, 15-28.
Vijayasarathy, L.R. (2002). Internet taxation, privacy and security: Opinions of the
taxed and legislated. Quarterly Journal of Electronic Commerce, 3(1), 53-71.
Wigand, Rolf. (1997). Electronic Commerce: Definition, Theory, and Context. The
Information Society: An International Journal 13(1), 1-17.
http://en.wikipedia.org/wiki/Regression_analysis
Wolfinbarger, M.F., & Gilly, M.C. (2002). .comQ: Dimensionalizing, Measuring and
Predicting Quality of the E-tail Experience. Working paper, Marketing Science,
Institute, Cambridge, M.A., 02-100.
Yang, Z., & Fang X. (2004). Online service quality dimensions and their relationships
with satisfaction. A content analysis of customer reviews of securities brokerage
services. International Journal of Service Industry Management, 15(3).
Yibin, M.U. (2003). E-Banking: Status, Trends, Challenges and Policy Issues. The
Development and Supervision of E-banking, Shanghai, 24-26.
Zhres, M. (2012, May 11). E-money: Niche market that might be expanding. DB
Research, Deutsche Bank.
Zeithaml, V.A., Parasuraman, A. and Malhotra, A. (2000). Service quality delivery
through web sites: a critical review of extant knowledge. Journal of the Academy of
Marketing Science, 30(4), 362-75.
Zhao, A. L., Lloyd, S. H.-., Ward, P., & Goode, M. M. H. (2008). Perceived risk and
Chinese consumers' Internet banking services adoption. International Journal of Bank
Marketing, 26(7), 505 - 525.
Zwass, V. (2003). Electronic Commerce and Organizational Innovation: Aspects and
Opportunities. International Journal of Electronic Commerce, 7(3), 7-37.
Zwass, V. (1996). Electronic Commerce: Structure and Issues. International Journal of
Electronic Commerce, 1(1), 3-23.

43

You might also like