Technological breakthrough has
enormous impact on the development of all industries in Pakistan. Now a day’s
use of internet for commercial transactions is evident as it is the most recent
channel of distribution used by organizations. Banking sector is no exception.
Although the use of internet for providing banking services is popular among
develop countries but there is favorable environment for the development of
internet banking in developing countries as well because it allows banks to
operate more efficiently, enhance productivity, expand geographically and
compete globally as well. Therefore, now a day’s banking sector is making huge
investment on technology to secure their future.
This study scrutinizes the role of E-banking towards customer satisfaction.
E-banking is basically a method of banking by which customer conduct
transactions electronically via internet/mobile phone. Financial institutions
choose e-banking system because of its strategic objectives, wider scope,
technological expertise and security. Currently in Pakistan many of financial
institutions are using E-banking on extensive level by providing the services of
ATM (Automated Teller Machine), view account details, payment and transfer of
funds, order and re-order cheques, payment of bills, get loans by filling online
loan application form, open accounts, activation or replacement of credit cards
and to get in touch with the customer care department of the banks.
As customers are looking ways to quick access information and simple mode of
transactions. Internet banking gives empowerment to the customers to control
over their accounts; it facilitates home banking by providing ability to
download bank data and conduct transactions even at home and workplace by ensure
privacy and security, customer not need to go physically at bank for any kind of
transaction. This empowerment leads to increase customer confidence, trust and
loyalty. Internet banking promotes quick access, convenience and improved
quality that leads towards the benefits such as time saving, cost saving, quick
access, extensive choices and empowerment. Internet banking facilitates users as
well as banks.
E-banking helps banks to save their cost because it’s cheaper to make
transaction by Internet, as there is no geographical boundaries with internet it
allows banks to capture a new wide market, it reduces operational cost by lessen
the paper work which enhance efficiency, it reduces the management cost as well
with respect to managing branches. It helps users to be convenient; free from
time and place constraints. All these benefits invoke customer satisfaction and
replace fear and mistrust with confidence and trust. As customer is the King and
success of every industry based on customer specially banking sector because
banking sector depends upon deposits of the customers, by satisfying customers
and providing them privacy and safety we can develop their trust that will lead
towards the growth of industry. With perspective of Pakistan’s circumstances
people need safety of their money and while making transactions through internet
they get confidence.