BANKING ADOPTION IN PAKISTAN
With the emergent of new technology especially mobile technology as given new direction with respect to its corporate usage. Mobile banking is one of new way of banking with the emerging technology adopted by banks around the globe. The purpose of this research is to identify the key factors of mobile technology adoption which influence customer satisfaction in Pakistan. Questionnaires are used to conduct data collection and then analyzed using statistical techniques: regression analysis, correlation and factor analysis. The findings show that customer’s concerns about security, authenticity and reliability of the technology are of significance. The results imply that firms should focus upon IT application, innovative services, security, customer trust, convenience and risk as these are the key indicators of technology adoption.
Today, financial sector firms are competing to increase their profit share in the market beside offering new product line to the customers. Among these firms, banks have radically shifted from traditional banking to branchless mode of banking. Adoption of latest technology has enabled banks to extend their customer base, where electronic banking has proved to be the chief advancement. Mobile banking can be categorized as the latest advancement in electronic banking, which has widened customers’ access to bank accounts through wireless channels. Mobile banking is a financial service where the bank customers perform balance inquiry, credit transfer, and other businesses according to instruction sent through the mobile phone . From customers’ perspective adopting mobile banking services benefit in terms of convenience to perform banking transactions anytime and anywhere, with ease to use. Security is ensured, as banking transactions are encrypted and password-protected .
Pakistan has a successfully growing economy as its telecommunication industry has advanced tremendously in the recent years. Pakistan's mobile technology, which had started to grow strongly over the last few years, rocketed to 95 million subscribers by June 2009 and is gearing up for further growth. The mobile population has been increasing at a remarkable rate 58% with six mobile companies operating in Pakistan, as reported by . People belonging to all income groups are using this technology as a result of foreign investment in Pakistan and reduced telecommunication rates. The encouraging prospect of mobile usage has led foreign banks of Pakistan to provide mobile banking services to customers in the country. After the multinational banks, numerous local banks have intended to initiate this service for their customers. State Bank has issued orders to these banks to facilitate poor people, especially the residents of earthquake-affected areas Manuscript received October 9, 2011; revised December 12, 2011. . The last 4-5 years have proved to be fruitful, as customers have shown interest towards technology usage. The literature review suggests that there exists a gap in the analysis of new technology adoption in the area of e-commerce in Pakistani banks. As customers are yet novice to the new technology so there is a lot more for banks to exploit before offering the advance features of this technology. The study is significant because of the need for research on mobile banking and the impact of technology adoption on customer satisfaction. Especially in Pakistan mobile banking is a new area and there exists a need to analyze the critical aspects of technology adoption. Furthermore, customer satisfaction has not been studied specifically for banking sector firms with respect to technology adoption. The study is significant at this initial stage when State Bank of Pakistan has also released orders to all the banks to adopt the technology. Drawing on the relevant literature and empirical implications...