E-banking was introduced in
Pakistan in mid 90’s and was adopted by domestic banks in late 90’s by
introducing services like ATM cards, debit cards, credit cards, mobile banking
etc. People in Pakistan mostly don’t have much awareness regarding e-banking, so
it’s essential to enlighten them about its value and benefits in today’s era by
promoting it on websites time to time .As e-banking enable customer to conduct
all sort of transactions 24 hrs daily by keeping in interact with bank’s
website. It has made the system more efficient and cheap by reducing paper
transactions which has made banks to focus more on online transactions. This
transformation has been seen across all sectors of banking industry. To compete
in this competitive environment banks need to improve their IT system and train
employees accordingly. Only the banks that would be able to use their
technological assets effectively and efficiently will have the opportunity to
survive and compete in this industry successfully. For developing countries like
Pakistan technology has introduced new opportunities to use creativity of their
youth (knowing IT’s importance in today’s economy) for country’s development.
It has been observed that people having knowledge of e-banking consider online
transactions uncertain while financial institutions have been trying their best
to satisfy customers for secure transactions. These institutions have adopted
diverse ways to lower the risk of unauthorized access to customer records.PIN/TAN
system used by banks is considered a secure way in which a password is used by
customer for login and in TANS one time passwords are used to verify
transactions. Other way to secure is signature verification where transactions
are signed digitally. By adopting these secure ways institutions are trying
their level best to make people secure about online transactions. Ned of the
time is to build trust in people to feel secure about online transactions by
telling them advantages of e-banking like ease of accessing finances any time
from ATM machines, enabling people to conduct sales through their debit or
credit cards, saving time by reducing bank visits, having authority to check
their account balances or transactions any time. Considering advantages of
e-banking and its importance it has some drawbacks as well like lacking any
direct contact with the bank employees in case of any query, hacking issues,
computer illiterate, legal issues and technical breakdowns are the major
problems faced by customers. However, financial institutions are working on
resolving these issues to lower the riskiness.