Hesitation of people using E-Banking in PAKISTAN

Description
This study is based on the banking industry of PAKISTAN, that why people hesitate using online banking in PAKISTAN.
In this study some of the issues been highlighted and there are some solutions and recommendation...

HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Final Research Project
“HESITATIONOF PEOPLE
USINGE-BANKINGIN
PAKISTAN”
Research By:
Mir Shaheer Ali Agha
Fa09-bb-0032
Research Instructor:
Mr. Asif Naji
Date:
24
th
May, 2013
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
ACKNOWLEDGEMENT
First of all I am very thankful to ALMIGHTY
ALLAH, who gave me the opportunity & helped me
through-out the research.
I am also very thankful to our instructor “Mr.Asif
Saeed Naji” who guide me throughout this research
and give important advice regarding my research and
for any problem that was encountered regarding the
completion of this research
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
ABSTRACT
Purpose – The main purpose of this research paper is to study that why the customers hesitate
using electronic banking in Pakistan.
Design/methodology/approach – This research is totally based on quantitative method (first
hand data) & the main focus of this research paper is based on the customer hesitation towards
electronic banking. Total respondent for this study are the students, customers, employers,
employees, bankers & entrepreneur of different organization working in Karachi. Outcome of
this paper are based on 100 close ended questionnaires from 108 questionnaires which were
distributed to students, customers, employers, employees, bankers & entrepreneur. Response rate
from respondents is 92.6 percent. Convenient sampling was used for sample selection. The
statistical procedures which were employed to process the data were mean, median, mode
standard deviation, reliability analysis and correlation. T-test was used for the inferential tests in
correlation.
Findings: Understanding of variables which are statistically significant. While internal control is
the variable which is not significant. It means that first three variables which are statistically
significant have impact on the performance students, customers, employers, employees, bankers
& entrepreneur. As these variables increase, performance of the bank also increases and as these
variables decrease, performance of the bank also decreases.
Practical implications – This research paper will be helpful for those are interested in electronic
banking & also want to see the impact of hesitation of people towards e-banking.
Originality/value – To the best of my knowledge, this paper is the first attempt as a student of
Mohammad Ali Jinnah University to identify the reasons that why do people hesitate using e-
banking in Pakistan.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Table of Contents
CHAPTER 1
..................................................................................................................................... 1
1. INTRODUCTION AND BACKGROUND......................................................... 1
1.1 INTRODUCTION................................................................................................. 1
1.2 BACKGROUND................................................................................................... 2
1.3 JUSTIFICATION.................................................................................................. 4
1.4 PROBLEM STATEMENT.................................................................................... 4
1.5 HYPOTHESIS....................................................................................................... 5
CHAPTER 2............................................................................................................... 6
LITERATURE REVIEW AND THEORETICAL FRAMEWORK ................... 6
2.1 INTRODUCTION................................................................................................. 6
2.2 THEORETICAL FRAMWORK........................................................................... 6
2.2.1 Figure 2.1............................................................................................................ 6
2.2.2 Figure 2.2............................................................................................................ 7
2.2.3 Figure 2.3............................................................................................................ 7
2.3 ADVANTAGES OF INTERNET TO FINANCIAL INSTITUTITON................. 8
2.4 IMPACT OF SERVICE QUALITY ON THE USUAGE OF E-BANKING........ 8
2.5 RISK PERCEPTION TOWARDS E-BANKING.................................................. 9
2.6 WHY E-BANKING IS IMPORTANT................................................................... 9
2.6.1 Ease for customer……………………….…………………………………….. 10
2.6.2 Attracting high value customer……………………………………………….. 10
2.6.3 Enhance image………………………………………………………………... 11
2.6.4 Increase revenue……………………………………………………………… 11
2.6.5 Easier expansion……………………………………………………………… 11
2.6.6 Cost reduction………………………………………………………………… 12
2.6.7 Organizational efficiency……………………………………………………... 12
2.7 BARRIERS TO E-BANKING………………………………………………….. 12
2.7.1 Access to internet……………………………………………………………... 12
2.7.2 Consumer behavior……………………………………………………………. 13
2.7.3 Language & cultural barrier…………………………………………………… 13
2.7.4 Security Issue………………………………………………………………….. 14
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
CHAPTER 3 ............................................................................................................... 15
VARIABLE FRAMEWORK..................................................................................... 15
3.1 FRAME WORK OF DEPENDENT VARIABLE & INDEPENDENT
VARIABLES……………………................................................................................. 15
3.1.1 Description of Dependent Variable..................................................................... 16
1. Success/ successful organization.......................................................... 16
3.1.2 Description of Independent Variable.................................................................... 16
1. Core services…………………………………………………………………………. 16
2. Problem Resolution…………………………………………………………………... 17
3. Customer Satisfaction………………………………………………………………… 17
4. Security……………………………………………………………………………….. 17
5. Website Layout……………………………………………………………………….. 17
CHAPTER 4 ................................................................................................................ 18
RESEARCH DESIGN & METHODOLOGY........................................................... 18
4.1 RESEARCH HYPOTHESIS.................................................................................... 18
4.2 DEFINITION & FRAME WORK OF DEPENDENT VARIABLE & INDEPENDENT
VARIABLES…………………………………............................................................... 19
4.3 INSTRUMENT DESIGN & DATA COLLECTION................................................ 21
4.4 DATA ANALYSIS TECHNIQUES ……………………………………………… 22
CHAPTER 5………………………………………………………………………….... 23
5. DATA ANALYSIS…………………………………………………………………. 23
5.1 DESCRIPTIVE ANALYSIS………………………………… …………………….23
5.1.1 Reliability Test………………………………………………………………….… 23
5.1.2 Frequencies……………………………………………………………………….. 23
5.1.3 Histogram…………………………………………………………….…………... 33
5.1.4 Regression Analysis………………………………………………………………. 37
5.1.5 Mean…………………………..………………………………………..……….…. 38
5.2 HYPOTHESIS………………………………………………………………………. 40
5.2.1 Correlations………………………………………………………………………... 40
5.2.2 Hypothesis Analysis ………………………………………………………………. 42
CHAPTER 6……………………………………………………………………………. 44
6. DISCUSSION & CONCLUSION……………………………………………... 44
6.1 DISCUSSION OF THE RESULT…………………………………………….… 44
6.2 CONCLUSION………………………………………………………………...… 46
References………………………………………………………………………….. 48
Appendix…………………………………………………………………………… 52
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
CHAPTER 1
INTRODUCTION & BACKGROUND
1. INTRODUCTION
Bank is an English word, derived from the French word “Banque” or “Bancus” which means “a
bench”. Other than some of the authorities hold an opinion that Bank derived from a Germen
word “Bauk” which means “joint stock fund”. Later on Germen word “Bauk” was Italianized
into “Bank”. According to the Banking Companies Ordinance, 1962 Section 5(b) which says
“Banking means the accepting, for the purpose of lending or investment, of deposits of money
from the public, repayable on demand or otherwise, and withdrawal by cheques, drafts, order or
otherwise.”
Banks have traditionally been in the forefront of harnessing technology to improve their
products, services and efficiency. Over a long time, they have been using electronic and
telecommunication networks for delivering a wide range of value added products and services.
The delivery channels include direct dial – up connections, private networks, public networks etc
and the devices include telephone, PC’s including the Automated Teller Machines and etc.
Internet banking is the term used for new age banking system. Internet banking is also called as online
banking and it is an outgrowth of PC banking. Internet banking uses the internet as the delivery channel
by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and
savings account balances, paying mortgages and purchasing financial instruments and certificates of
deposits (Haque et al, 2009). Internet banking is a result of explored possibility to use internet
application in one of the various domains of commerce. It is difficult to infer whether the internet tool has
been applied for convenience of bankers or for the customers’ convenience. But ultimately it contributes
in increasing the efficiency of the banking operation as well providing more convenience to customers.
Without even interacting with the bankers, customers transact from one corner of the country to another
corner.
This form of banking is generally referred to as Internet Banking or Electronic Banking,
although the offered range of products and services by different banks vary widely. Electronic
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
banking (commonly as “e-banking”) is defined as “Delivery of bank’s services to a customer by
using electronic technology”. E-banking is one the modern types of banking in which electronic
distribution channels provide alternatives for faster delivery of banking services to a wider scope
of customers. The aims of study to understand customers' perception towards the potential
benefits and risks associated with e-banking in Pakistan and what are the major hindrances that
obstructs the adoption of it.
The technology growing trend in Pakistan is at its hype, the usage of ATM, internet and mobile
banking is has been increased in Pakistan with its peak. As per reported by State Bank of
Pakistan (S.B.P), the official data shows that between FY 2012, e-banking transactions totaled
296.3 million and settlement payment of worth Rs 27.3 trillion.
The three-month period ending on December 31, 2012, there was yet again double-digit growth
seen in the e-payments within Pakistan.
The e-banking infrastructure had further expanded in December last year. Therefore, the SBP
Review shows that the ATMinstallations had reached 6,232 across the country, servicing nearly
21 million plastic cards, which includes nearly 19.5 million debit cards and ATM-only cards.
1.2 Background
E-Banking is rapidly getting very common amongst businesses entities and masses in Pakistan.
Though in Pakistan, the minimal standards are followed, but still the sector is seeing the
unprecedented growth in it.
Joseph et al. (1999) investigated the influence of internet on the delivery of banking services to
their customers. He found six core dimensions of the e-banking service quality such as
convenience and accuracy, feedback and complaint management, efficiency, queue management,
accessibility and customization.
Jun and Cai (2004) identified 17 service quality dimensions of e-banking service quality. These
are understanding the customer reliability, responsiveness, competence, courtesy, credibility,
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
access, communication, collaboration, continuous improvement, content, accuracy, ease of use,
timeliness, aesthetics, security and divers features.
They also suggested that some dimensions such as responsiveness, reliability and access are
critical for both traditional banking and internet banking.
Ghobadian (1994), achieving the quality of conformance between the planned (target) quality
level and real quality delivered to customers mainly depends on the quality management service
in organization.
Meuter et al. (2000) have identified critical incidents of customer satisfaction and dissatisfaction
with technology-based service encounters. Given that B2B transactions are one of the fastest
growing segments of technology-driven services (Hof, 1999).
Customers usually perceive risks in transfer of transactions electronically and particularly if the
transactions involve money. Security is one of the most important issues, which can cause the
customer to be in doubt even while using the internet banking system. (Patricio 2003, p. 475).
Jaruwachirathanakul and Fink (2005) advice that the customer adoption over internet banking
may increase by making them believe in system.
Laforet and Li (2005), in their studies, they discovered that significant security differences
between those using online banking and those who are not and emphasized that the hackers and
fraud aspects are very much important for the non-users.
Kaynak and Harcar (2005) observed that security problems are the most important reason
given by customer for not using online banking. The results show that security problems, like
hackers and fraud are determining aspects in internet banking. In this concept, trust and security
are the factors that supporting a positive view of internet banking service quality.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
1.3 Justification
This study aims to understand customers' perception towards the potential benefits and risks
associated with electronic banking in Pakistan. To choose such a study topic basically means to
strengthen the understand about the subject matter “e-banking”, its attributes and the qualitative
factors effecting the adoption and usage of it. The need to conduct the research based on the
below mentioned objectives, is to highlight the barriers and obstructions that are faced by the
consumers of e-banking services so that they can be reduced through a mutual consent and
proper policy formulation between the service providers and end users.
1.4 Problem Statement
The study aim the problem that how customer perceived and interpret the banking website. Some
more findings shows that reliability, responsiveness, assurance, service quality, and service
evolution.
Many respondents expressed lack of assurance regarding the roles and service scripts; and
doubts due to the perceived complexity of the process and risks involved (Broderick and
Vachisapoinpuk, 2002). When customers evaluate the quality of the service they receive from
Banking Institution their satisfaction depends on website features (Doll and Torkzadeh, 1988).
As the convenience and availability of the Internet, websites have become more important in
disseminating and accumulating information for manufacturers, retailers, educational
institutions, governments, and variety of other organizations (Quelch and Klein, 1996).
Satisfaction and behavioral intentions can be influenced by the communication techniques
of a service provider (MacStravic, 1994).
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
1.5 Research Hypothesis
H
1
: Relationship between Success of an organization & core services provided to customers.
H
2
: Relationship between Success of an organization & satisfaction of the customers towards
electronic banking.
H
3
: Relationship between Success of an organization & security provided to them during
online transaction.
H
4
: Relationship between Success of an organization & website layout (design).
HESITATION OF PEOPLE USING E
LITERATURE REVIEW& THEORETICAL FRAMEWORK
2.1 Introduction
From the last decade Banker’s and customer’s awareness of the advantages of electronic banking
have draw the interest of many researchers. Berry in 1984 emphasis that employees must be
examined by the management as “internal customers”. Protection of high level of employee’s
pleasure and retention is significant if banks are to attain high level of customer pleasure and
retention.
2.2 Theoretical Frame Work
2.2.1
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
& THEORETICAL FRAMEWORK
and customer’s awareness of the advantages of electronic banking
have draw the interest of many researchers. Berry in 1984 emphasis that employees must be
examined by the management as “internal customers”. Protection of high level of employee’s
nd retention is significant if banks are to attain high level of customer pleasure and
Frame Work
BANKING IN
CHAPTER 2
and customer’s awareness of the advantages of electronic banking
have draw the interest of many researchers. Berry in 1984 emphasis that employees must be
examined by the management as “internal customers”. Protection of high level of employee’s
nd retention is significant if banks are to attain high level of customer pleasure and
HESITATION OF PEOPLE USING E
2.2.2
2.2.3
Figure 2.3
Core services
Customer
satisfaction
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Independent Variable
Dependent Variable
Success/
successful
organization
BANKING IN
Security
Website layout
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
2.3 Advantage of Internet to Financial Institutions
Internet has changed the way people used to do business. It has transformed the whole business
landscape for both individuals and businesses (AbuShanab et al., 2010). Since the diffusion of
internet, financial institutions that are taking the benefit of this medium have adopted the concept
of internet banking. Initially internet banking was used for advertisement and promotional
activities for the banks’ products and services (Tan and Teo, 2000).
As this medium started grooming, internet banking has created value for the banks in terms of
reducing cost, enhances customer service, and has increased long-term profitability by allowing
customers to carry out their transactions online and perform other activities at any time they want
from their homes, offices or from any other remote location that is feasible for them.
The online banking allows customers to access information, do many banking operations (except
perhaps cashing money) through a telecommunication network without leaving home or business
in a complete virtual environment (Lallmahamood, 2007; Mukherjee and Nath, 2003).
The financial services offered by internet banking could include viewing all transactions and all
accounts balances in real time, payment of bills, change of money in other currencies, transfers
of money, stocks operations, purchase of all kind of insurances, purchase of travel tickets and
travel packages, etc.(Ainin, Lim and Wee, 2005; Gerrard and Cunningham, 2003; Polatoglu
and Ekin, 2001).
2.4 Impact of Service Quality on Usage of E-Banking
Researchers also investigated the influence of internet on the delivery of banking services
(Joseph et al., 1999). They found six underlying dimensions of the e-banking service quality
such as convenience and accuracy, feedback and complaint management, efficiency, queue
management, accessibility and customization. Researchers have identified 17 service quality
dimensions of i-banking service quality (Jun and Cai, 2004).
One of the premier in e-banking has defined that, achieving the quality of conformance between
the planned (target) quality level and real quality delivered to customers depends on the service
quality management system in organization (Ghobadian, 1994).
The customers’ trust of Internet banking is important and is a variable which has an effect on
their view of service quality (Jayawardhena, 2004; Yüksel, 2005). Trust is a variable which has
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
a significant effect on the customer’s approach toward Internet banking and tendency to use
Internet banking (Han and Suh, 2002). Therefore when this trust is reduced, whether or not this
is the customer’s own fault, his or her attitude toward his or her bank will change. As far as this
subject is concerned, it is necessary to pay attention to the fraud factor.
2.5 Risk-Perception towards E-Banking
Customers usually perceive risks in conduction transactions electronically and particularly if the
transactions involve money. Security is one of the most important issues, which can cause the
customer to be in doubt even while using the internet banking system (Patricio, 2003) and it is
correlated with the concept of trust. The customers’ adoption of internet banking may be
increased by making them believe the system, and this can be used as a push strategy
(Jaruwachirathanakul & Fink, 2005). The e-trust level of the customers has an effect on the
loyalty concept, although to a lesser degree of satisfaction (Ribbink et al., 2004). Such a relation
expresses the conditional dependencies of customer’s interpretation of internet banking service
quality.
Significant security differences between those using online banking and those who are not, and
the hackers and fraud aspects are most important for the non-users (Laforet and Li, 2005).
Security problems are the most important reason given for not using online banking (Kaynak
and Harcar, 2005). Their results show that security problems, like hackers and fraud, are
determining aspects in internet service presentation. In this concept, trust and security are factors
supporting a positive view of internet banking service quality.
2.6 Why is e-Banking Important?
Understanding e-banking is important for several stakeholders, not least of which is management
of banking related organizations, since it helps them to derive benefits from it. The Internet as a
channel for services delivery is fundamentally different from other channels such as branch
networks, telephone banking or Automated Teller Machines (ATMs). Therefore, it brings up
unique types of challenges and requires innovative solutions.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Many banks and other organizations have already implemented or are planning to implement e-
banking because of the numerous potential benefits associated with it. Some of these major
benefits are briefly described below:
2.6.1 Ease for Customers
The nature of e-banking means that personal contact between customers and banks are eroded.
E-channels erode a direct relationship with customers as compared with traditional over-the-
counter banking: e-banking does not offer face-to-face contact in what is essentially a one-to-one
service relationship (Harden, 2002). To compensate, e-banks must deliver higher quality
services in order to compete with other service delivery channels (Liao & Cheung, 2005).
Another factor in the loss of personal relationships is the convenience of Internet shopping: it is
much easier now to compare products and switch between different providers. This creates the
need for offering high value products and to cut operational costs to remain competitive, which
in turn may further erode the avenues for building personal relationships with customers. The
solution to these problems appears to be offering a multi channel experience which is better than
direct competitors.
Customers want the traditional range of banking services, augmented with online capabilities and
a stronger focus on personal relationships. (Avkiran in 1999), stressed the importance of the
human touch in customer services. Politeness and neatness, recognition in terms of greeting,
willingness to provide prompt service, ability to apologise and express concern for a mistake are
all important for bank customers. Most of these aspects of customer service cannot be automated.
The adequacy of staff members serving customers can be expected to directly influence customer
satisfaction.
2.6.2 Attracting High Value Customers
E-banking often attracts high profit customers with higher than average income and education
levels, which helps to increase the size of revenue streams. For a retail bank, e-banking
customers are therefore of particular interest, and such customers are likely to have a higher
demand for banking products. Most of them are using online channels regularly for a variety of
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
purposes, and for some there is no need for regular personal contacts with the bank’s branch
network, which is an expensive channel for banks to run (Berger & Gensler, 2007).
Some research suggests that adding the Internet delivery channel to an existing portfolio of
service delivery channels results in nontrivial increases in bank profitability (Young, 2007).
2.6.3 Enhance Image
E-banking helps to enhance the image of the organization as a customer focused organization.
Despite of its common availability today, an attractive banking website with a large portfolio of
innovative products still enhances a bank’s image. This image also helps in becoming effective
at e-marketing and attracting young/professional customer base.
2.6.4 Increased Revenues
Increased revenues as a result of offering e-channels are often reported, because of possible
increases in the number of customers, retention of existing customers, and along with cross
selling opportunities. Whether these revenues are enough for reasonable return on investment
(ROI) from these channels is an ongoing debate. It has also allowed banks to diversify their
value creation activities.
E-banking has also resulted in increased credit card lending as it is a sort of transactional loan
that is most easily deliverable over the Internet. Electronic bill payment is also on rapid rise
(Young, 2007) which suggests that electronic bill payment and other related capabilities of e-
banking have a real impact on retail banking practices and rapidly expanded revenue streams.
2.6.5 Easier Expansion
Traditionally, when a bank wanted to expand geographically it had to open new branches,
thereby incurring high start up and maintenance costs. E-channels, such as Internet, have made
this unnecessary in many circumstances. Now banks with a traditional customer base in one part
of the country or world can attract customers from other parts, as most of the financial
transactions do not require a physical presence near customers living/working place. In many
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
countries banks share their resources such as ATMs or use post offices as their main interaction
points, with customers for services such as cash and cheques deposits.
2.6.6 Cost Reduction
The main economic argument of e-banking so far has been reduction of in the clouds cost of
other channels such as branches, which require expensive buildings and a staff presence. It also
seems that the cost per transaction of e-banking often falls more rapidly than that of traditional
banks. The research in this area is still unconvincing, and often contradicting reports appear in
different parts the world. The general consensus is that fixed costs of e-banking are much greater
than variable costs, so the larger the customer base of a bank, the lower the cost per transaction
would be.
However, some sources of research in this area suggest that banks so far have made little savings
from introducing e-banking (Young, 2007).
2.6.7 Organizational Efficiency
To implement e-banking, organizations often have to re-engineer their business processes,
integrate systems and promote agile working practices. These steps, which are often pushed to
the top of the agenda by the desire to achieve e-banking, often result in greater efficiency and
agility in organizations. However, radical organizational changes are also often linked to risks
such as low employee morale, or the collapse of traditional services or the customer base.
2.7 Barriers to E-Banking
The following factors demonstrate why e-banking may be difficult to implement, or why a bank
may not realize the full benefits from it.
2.7.1 Access to the Internet
Although the growth of the Internet has been very fast throughout this era, there is still a large
population not connected to the Internet. Lack of computer literacy, high cost of hardware and
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
call charges and various other social and economic factors are some of the reasons cited for this
(Walczuch et al., 2000). This is changing fast as more and more people connect to the Internet,
and numbers are expected to grow even faster with the maturity of mobile communications
(Samuals, 2002). However, this is still more of a problem in some developing countries, where
the telecommunications infrastructure is less developed.
2.7.2 Consumer Behavior
A large number of consumers of financial services are still reluctant to conduct their financial
management online. A study of consumer habits in 10 countries found that two-thirds of
consumers do not consider online services important and that almost 30 percent do not know
whether their bank offers Web-base services (Regan & Macaluso, 2000). Changing consumer
behaviour takes many years, as was the case with the 10-year adoption cycle of the ATM. This
process can be accelerated with aggressive marketing and high value-added features, two things
that are lacking in today’s online banking market (Franco & Klein, 1999). This can also be true
for some businesses, which may be even slower than consumers in adopting new technologies.
Factors such as security, perceived difficulties of use, perceived usefulness, functionality and
lack of promotion (such as availability of cheaper products on new channels) are most commonly
cited factors which are hindering the widespread adoption of new technologies (Cheng et al.,
2006).
2.7.3 Language and Culture Barriers
These play a major role in global e-Commerce. Although English is accepted as the primary
language of the Internet worldwide, in some cases a website has to be designed specifically to
suit the market that it is trying to reach. The main problems associated with this are speed and
cost. It takes a human translator up to a week to translate a small website into just one language
(Turban et al., 2000). Financial services related websites are usually very large and consume
large resources in the translation process. The problem does not end with the translation of a
website; it also need be adapted to the local culture to attract visitors. Banks around the world
would do well to learn from Swiss banks, which successfully offer their services in several
different languages.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
2.7.4 Security Issues
Internet security is still one of the major issues hindering the growth of Internet related trade.
Since the Internet is an open network, high security risks are involved with financial transactions
(Han & Noh, 1999-2000). Internet fraud is common, and related stories get immediate media
attention, making people hesitant to bank online. Different security methods (including hardware
and software) are being tested and employed currently but there is still some way to go to win the
trust of a large majority of customers (Mols, 1999).
There is a strong relationship between a secure operation, protection of personal information, and
a low level of perceived risk (Yang et al., 2004). Researchers in their research observed that
customers using Internet banking for a long period of time without experiencing problems
(reliability, security and privacy) have a higher degree of satisfaction (Polatoglu and Ekin,
2001). Researchers argued that perceived security has a positive effect on customers’ relations
with e-banking, and that in order to remove the security risk it is necessary to create personal
confidence and continuously to improve the banks’ security system (Liao and Wong, 2007).
Another research has been conducted on security and customer service aspects of online banking
systems (Rose, 2000). Therefore security is a positive definer of service quality (Liao and
Cheung, 2005) and security control is a subject which should be worked on when the user
continues to use online banking after an incident of identity theft (Smith, 2006).
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
CHAPTER 3
VARIABLE FRAME WORK
3.1 Frame Work of Dependent Variable & Independent Variables
Independent Variables

Dependent Variable
Core services
Success/
successful
organization
Customer
satisfaction
Security
Website layout
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
3.1.1 Description of Dependent Variable
1. Success/ successful organization
Achievement of an action within a specified period of time or within a
specified parameter Success can also mean completing an objective or reaching a goal. Success
can be expanded to encompass an entire project or be restricted to a single component of a
project or task. It can be achieved within the workplace, or in an individual's personal life.
A successful organization is that which is highly focused and has developed a deep
understanding of its customers' need, its competitive environment and its economic realities.
This understanding / analysis then form the basis for specific strategies which are then translated
into day-to-day execution by high energy teams.
In a successful organization the above activities can be built on three different attributes.
1. World class process
2. Clear cut strategies
3. High performance culture
3.1.2 Description of Independent Variable
7. Core services
It basically tells that’s what e-banking services we should provide to our customers that they
attract with us & enjoy our e-banking products/facilities.
Banking needs
Banking need basically tells that the need that bank required for facilitate their customer.

HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
8. Problem resolution
The process of working through details of a problem to reach a solution. How banks identify
their problem & how quickly they over-come from it.
9. Customer satisfaction
The degree of satisfaction provided by the goods or services of a company as measured by
the number of repeat customers.
10.Security
The prevention of and protection against assault, damage, fire, fraud, invasion of
privacy, theft, unlawful entry, and other such occurrences caused by deliberate action.
11. Website layout
The positioning of the various elements that make a website. The layout is the hardest to change
and thus must be settled and agreed upon early on the development process.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
CHAPTER 4
RESEARCH DESIGN & METHODOLOGY
4.1 Research Hypothesis
H
1
: Relationship between Success of an organization & core services provided to
customers.
H
2
: Relationship between Success of an organization & satisfaction of the customers
towards electronic banking.
H
3
: Relationship between Success of an organization & security provided to them
during online transaction.
H
4
: Relationship between Success of an organization & website layout (design).
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
4.2 Definition & Frame Work of Dependent Variable & Independent Variables
Independent Variables

Dependent Variable
Core services
Success/
successful
organization
Website layout
Customer
satisfaction
Security
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
4.2.1 Description of Dependent Variable
4.2.1.1 Success/ successful organization
Achievement of an action within a specified period of time or within a
specified parameter Success can also mean completing an objective or reaching a goal. Success
can be expanded to encompass an entire project or be restricted to a single component of a
project or task. It can be achieved within the workplace, or in an individual's personal life.
A successful organization is that which is highly focused and has developed a deep
understanding of its customers' need, its competitive environment and its economic realities.
This understanding / analysis then form the basis for specific strategies which are then translated
into day-to-day execution by high energy teams.
In a successful organization the above activities can be built on three different attributes.
4. World class process
5. Clear cut strategies
6. High performance culture
4.2.2 Description of Independent Variable
4.2.2.1 Core services
It basically tells that’s what e-banking services we should provide to our customers that they
attract with us & enjoy our e-banking products/facilities.
Banking needs
Banking need basically tells that the need that bank required for facilitate their customer.

4.2.2.2 Problem resolution
The process of working through details of a problem to reach a solution. How banks identify
their problem & how quickly they over-come from it.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
4.2.2.3 Customer satisfaction
The degree of satisfaction provided by the goods or services of a company as measured by
the number of repeat customers.
4.2.2.4 Security
The prevention of and protection against assault, damage, fire, fraud, invasion of
privacy, theft, unlawful entry, and other such occurrences caused by deliberate action.
4.2.2.5 Website layout
The positioning of the various elements that make a website. The layout is the hardest to change
and thus must be settled and agreed upon early on the development process.
4.3 Instrument Design & Data Collection
The instrument used for data collection is questionnaire. Questionnaire that I used is closed
ended questionnaire based on 5 liked scale in which 5 is Strongly agree, 4 is Agree, 3 is
Neutral, 2 is Disagree & 1 is Strongly disagree.
Basically the main reason to choose questionnaire is to have the pilot study, first hand data
collection & the data can be evaluated & analyze easily.
Questionnaire comprises of 2 parts. First part is to obtain the information of the respondent &
other part contains the variable questions.
On 1
st
of May, 2013, I started to collect the data from 108 respondents in which students,
bankers, employers, employees, teachers & entrepreneurs were targeted. Till 13
th
of May data
was completely collected.
After the collection of the data, S.P.S.S (Statistical Procedure for Social Sciences) test was
applied to analyze the data with different test.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
4.4 Data Analysis Techniques
After the collection of the data, S.P.S.S (Statistical Procedure for Social Sciences) test was
applied to analyze the data with different test.
The tests applied to analyze the result through S.P.S.S are as:
I. Reliability Analysis
II. Correlation
a. Two-tailed test
III. Regression Analysis
IV. Graphs
V. Mean, median, mode
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
CHAPTER 5
DATA ANALYSIS
5.1 Descriptive Analysis
The below down tables shows the different results of the test that have been applied through
S.P.S.S
5.1.1 Reliability
Reliability Statistics
Cronbach's Alpha N of Items
.680 5
Table #5.1
Reliability:
Consistency and validity of test results determined through statistical methods after repeated
trials.
The test that I applied to check the reliability stats of my variables is Cronbach's Alpha.
Normally the usual limit of reliability of S.P.S.S varies from 0.5 to 1.Therefore the reliability of
my variables through Cronbach's Alpha is 0.680.
11.1.2 Frequencies
Statistics
Gender Bank Name Age Occupation Account Type
Awareness about
e-banking services
Provide Internet
Banking
Frequent e-
banking services
N Valid 100 100 100 100 100 100 100 100
Missing 8 8 8 8 8 8 8 8
Table #5.2
Total 108 respondents from which I collected the data in which 8 respondents didn’t respond
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Gender
Frequency Percent Valid Percent
Cumulative
Percent
Valid Male 43 39.8 43.0 43.0
Female 57 52.8 57.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.3
Total 108 respondents were to respond in which 100 responded very well.
Females were more to respond then the men.
Females responded 52.8% (57 respondents)
Male responded 39.8% (43 respondents)
The remaining 7.4% (8 respondents) didn’t responded appropriately.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Bank Name
Frequency Percent Valid Percent
Cumulative
Percent
Valid MCB 8 7.4 8.0 8.0
NBP 4 3.7 4.0 12.0
BANK AL-HABIB 10 9.3 10.0 22.0
UBL 14 13.0 14.0 36.0
ASKARI BANK 3 2.8 3.0 39.0
NIB BANK 8 7.4 8.0 47.0
BANK OF PANJAB 3 2.8 3.0 50.0
ALLIED BANK 8 7.4 8.0 58.0
HBL 13 12.0 13.0 71.0
BANK ALFALAH 5 4.6 5.0 76.0
SONERI BANK 1 .9 1.0 77.0
FAYSAL BANK 2 1.9 2.0 79.0
STANDARD CHARTERED 11 10.2 11.0 90.0
MEEZAN BANK 7 6.5 7.0 97.0
PICIC BANK 1 .9 1.0 98.0
HABIB METROPOLITAN BANK 2 1.9 2.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.4
As far as the analysis is concerned through banks, the respondents have high percentage of
U.B.L (United Bank Limited) i.e. 13%, after that H.B.L (Habib Bank Limited) have high
percentage of respondents i.e. 12%. Soneri Bank & PICIC Bank has very low percentage of
respondents i.e. 0.9%
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Age
Frequency Percent Valid Percent
Cumulative
Percent
Valid 18-28 86 79.6 86.0 86.0
29-38 6 5.6 6.0 92.0
39-48 6 5.6 6.0 98.0
49-58 2 1.9 2.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.5
As age is concerned, youngsters having age from 18-28 responded at 79.6% i.e. 86 respondents
Occupation
Frequency Percent Valid Percent
Cumulative
Percent
Valid Student 59 54.6 59.0 59.0
Employee/Customer 37 34.3 37.0 96.0
Entrepreneur 4 3.7 4.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.6
In occupation, student responded more than the others occupations having a high percentage of
54.6% i.e. 59 students responded out of 108 respondents.
Although 8 respondents didn’t response
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Account Type
Frequency Percent Valid Percent
Cumulative
Percent
Valid Current Account 65 60.2 65.0 65.0
Saving Account 25 23.1 25.0 90.0
PLS Account 7 6.5 7.0 97.0
Other 3 2.8 3.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.7
In account type respondents having high percentage of current account i.e. 60.2% of 65
respondents.
Awareness about e-banking services
Frequency Percent Valid Percent
Cumulative
Percent
Valid Yes 77 71.3 77.0 77.0
No 23 21.3 23.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.8
As awareness of electronic banking is concerned respondents responded very positively.
Respondents are well aware of electronic banking having a response percentage of 71.3% i.e. 77
respondents said yes out of 108 respondents.
Although 8 respondents didn’t response
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Provide Internet Banking
Frequency Percent Valid Percent
Cumulative
Percent
Valid Yes 72 66.7 72.0 72.0
No 4 3.7 4.0 76.0
Don’t know 24 22.2 24.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.9
As providing of electronic banking is concerned respondents responded very positively.
Respondents are well aware of their bank that they are facilitating their customer with electronic
banking & having a response percentage of 66.7% i.e. 72 respondents said yes out of 108
respondents.
Although 8 respondents didn’t response
Frequent e-banking services
Frequency Percent Valid Percent
Cumulative
Percent
Valid ATM 76 70.4 76.0 76.0
Internet Banking 13 12.0 13.0 89.0
Other 11 10.2 11.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.10
Frequent e-banking service is concerned respondents response more of A.T.M (Automated Teller
Machine) then the other services provided to them. 76 respondents responded at A.T.M with a
responding percentage 70.4%.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Statistics
Successful
Organization Core Services
Customer
Satisfaction Security Website Layout
N Valid 100 100 100 100 100
Missing 8 8 8 8 8
Mean 3.9900 3.1800 3.3300 3.5300 3.3600
Median 4.0000 3.0000 3.0000 4.0000 3.0000
Mode 4.00 3.00 3.00 4.00 3.00
Table #5.11
The Mean
Also known as the average, the mean is found by adding up all of the given data and dividing by
the number of data entries.
The Median
The Median is the 'middle value' in your list. When the totals of the list are odd, the median is the
middle entry in the list after sorting the list into increasing order. When the totals of the list are
even, the median is equal to the sum of the two middle (after sorting the list into increasing
order) numbers divided by two. Thus, remember to line up your values, the middle number is the
median.
The Mode
The mode in a list of numbers refers to the list of numbers that occur most frequently. A trick to
remember this one is to remember that mode starts with the same first two letters that most does.
Most frequently
The above given table shows the mean, median & mode of the dependent & independents
variables.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Successful Organization
Frequency Percent Valid Percent
Cumulative
Percent
Valid 2 5 4.6 5.0 5.0
3 17 15.7 17.0 22.0
4 52 48.1 52.0 74.0
5 26 24.1 26.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.12
As Successful Organization is a dependent variable, respondent are agreed towards the success
of an organization, with a percentage of 48.1% of 52 respondents out of 108 respondents.
Core Services
Frequency Percent Valid Percent
Cumulative
Percent
Valid 2 10 9.3 10.0 10.0
3 62 57.4 62.0 72.0
4 28 25.9 28.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.13
Core Service an independent variable, having neutral views about the variable, with a percentage
of 57.4% of 62 respondents out of 108 respondents.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Customer Satisfaction
Frequency Percent Valid Percent
Cumulative
Percent
Valid 2 11 10.2 11.0 11.0
3 47 43.5 47.0 58.0
4 40 37.0 40.0 98.0
5 2 1.9 2.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.14
Respondents have neutral view towards the customer satisfaction. 47 responded towards neutral
view with a percentage of 43.5%.
Security
Frequency Percent Valid Percent
Cumulative
Percent
Valid 3 47 43.5 47.0 47.0
4 53 49.1 53.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.15
For the security purpose 53 respondents were agree to it with a percentage of 49.1%.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Website Layout
Frequency Percent Valid Percent
Cumulative
Percent
Valid 2 5 4.6 5.0 5.0
3 56 51.9 56.0 61.0
4 37 34.3 37.0 98.0
5 2 1.9 2.0 100.0
Total
100 92.6 100.0
Missing System
8 7.4
Total
108 100.0
Table #5.16
56 respondents were having neutral views about the website layout with a percentage of 51.9%.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
5.1.3 Histogram
Graph #5.1
More than 50 respondents are agreed towards the success of an organization.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Graph #5.2
More than 60 respondents having neutral views about core services
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Graph #5.3
More than 45 respondents have neutral view towards the customer satisfaction.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Graph #5.4
More than 50 respondents were agree for the security purpose.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Graph #5.5
More than 56 respondents were having neutral views about the website layout.
5.1.4 Regression Analysis
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .639
a
.409 .384 .62613
a. Predictors: (Constant), Website Layout, Customer Satisfaction, Core Services, Security
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Table #5.17
R-square shows 40.9% variation in variables
5.1.5 Means
Successful Organization * Core Services
Successful Organization
Core
Services Mean N Std. Deviation Median
2 3.5000 10 .70711 4.0000
3 3.8871 62 .85132 4.0000
4 4.3929 28 .49735 4.0000
Total 3.9900 100 .79766 4.0000
Table #5.18
In this table neutral has the highest mean & standard deviation
Successful Organization * Customer Satisfaction
Successful Organization
Customer
Satisfaction Mean N Std. Deviation Median
2 3.0000 11 .00000 3.0000
3 3.9149 47 .74687 4.0000
4 4.3000 40 .72324 4.0000
5 5.0000 2 .00000 5.0000
Total 3.9900 100 .79766 4.0000
Table #5.19
In this table agree has the highest mean & neutral has highest standard deviation
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Successful Organization * Security
Successful Organization
Security Mean N Std. Deviation Median
3 3.6809 47 .78315 4.0000
4 4.2642 53 .71120 4.0000
Total 3.9900 100 .79766 4.0000
Table #5.20
In this table agree has the highest mean & neutral has highest standard deviation
Successful Organization * Website Layout
Successful Organization
Website
Layout Mean N Std. Deviation Median
2 3.4000 5 .54772 3.0000
3 3.8214 56 .74118 4.0000
4 4.2703 37 .80445 4.0000
5 5.0000 2 .00000 5.0000
Total 3.9900 100 .79766 4.0000
Table #5.21
In this table agree has the highest mean & standard deviation
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
5.2 Hypothesis
5.2.1 Correlations
Descriptive Statistics
Mean Std. Deviation N
Successful Organization 3.9900 .79766 100
Core Services 3.1800 .59255 100
Customer Satisfaction 3.3300 .69711 100
Security 3.5300 .50161 100
Website Layout 3.3600 .61167 100
Table #5.22
Following above are the mean & standard deviation of the variables of 100 respondents who
responded appropriately.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Correlations
Successful
Organization Core Services
Customer
Satisfaction Security Website Layout
Successful
Organization
Pearson Correlation 1.000 .346
**
.496
**
.367
**
.359
**
Sig. (2-tailed)
.000 .000 .000 .000
N 100.000 100 100 100 100
Core Services Pearson Correlation .346
**
1.000 .295
**
.423
**
.154
Sig. (2-tailed)
.000 .003 .000 .126
N 100 100.000 100 100 100
Customer Satisfaction Pearson Correlation .496
**
.295
**
1.000 .506
**
-.021
Sig. (2-tailed)
.000 .003 .000 .837
N 100 100 100.000 100 100
Security Pearson Correlation .367
**
.423
**
.506
**
1.000 .063
Sig. (2-tailed)
.000 .000 .000 .532
N 100 100 100 100.000 100
Website Layout Pearson Correlation .359
**
.154 -.021 .063 1.000
Sig. (2-tailed)
.000 .126 .837 .532
N 100 100 100 100 100.000
**. Correlation is significant at the 0.01 level (2-tailed). Table #5.23
The above correlations are for the relationship between the variables.
? Successful Organization having perfect positive correlation with Core Services, Customer
Satisfaction, Security & Website Layout
? Core Services having a perfect positive correlation with Successful Organization,
Customer Satisfaction & Security, but having no correlation with Website Layout
? Customer Satisfaction having perfect positive correlation with Successful Organization,
Core Services & Security, but having no correlation with Website Layout
? Security having perfect positive correlation with Successful Organization, Core Services
& Customer Satisfaction, but having no correlation with Website Layout
? Website layout having perfect positive correlation with Successful Organization, but
having no correlation with Core Service & Security, & also having negative correlation
with Customer Satisfaction
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
5.2.2 Hypothesis Analysis
Hypothesis 1:
Relationship between Success of an organization & core services provided to
customers
H
a
: There is no correlation between Success of an organization & core services provided to
customers
H
1
: There is positive correlation between Success of an organization & core services
provided to customers
The hypothesis is significant at 0.000 p value which shows the null hypothesis of no
correlation is rejected
Hypothesis 2:
Relationship between Success of an organization & satisfaction of the customers
towards electronic banking
H
a
: There is no correlation between Success of an organization & satisfaction of the
customers towards electronic banking
H
1
: There is positive correlation between Success of an organization & satisfaction of the
customers towards electronic banking
The hypothesis is significant at 0.000 p value which shows the null hypothesis of no
correlation is rejected
Hypothesis 3:
Relationship between Success of an organization & security provided to them
during online transaction
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
H
a
: There is no correlation between Success of an organization & security provided to them
during online transaction
H
1
: There is positive correlation between Success of an organization & security provided to
them during online transaction
The hypothesis is significant at 0.000 p value which shows the null hypothesis of no
correlation is rejected
Hypothesis 4:
Relationship between Success of an organization & website layout (design)
H
a
: There is no correlation between Success of an organization & website layout (design)
H
1
: There is positive correlation between Success of an organization & website layout
(design)
The hypothesis is significant at 0.000 p value which shows the null hypothesis of no
correlation is rejected
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
CHAPTER 6
DISCUSSION & CONCLUSION
This chapter consists of the complete discussion of the result, conclusion of the research &
recommendations if any for the betterment.
6.1 Discussion of the results
The data analysis of my research through S.P.S.S has turned out to be quite instructive. In this
chapter complete discussion is transmitted which turned to be of
I. Reliability Analysis
II. Correlation
a. Two-tailed test
III. Regression Analysis
IV. Graphs
V. Mean, median, mode
Table 5.1 consisting of reliability analysis test, consistency and validity of test results determined
through statistical methods after repeated trials.
The test applied to check the reliability stats of variables is Cronbach's Alpha.
Normally the usual limit of reliability of S.P.S.S varies from 0.5 to 1.Therefore the reliability of
my variables through Cronbach's Alpha is 0.680.
Now by applying correlation test showing the results of Table #5.2: Total 108 respondents from
which I collected the data in which 8 respondents didn’t respond
Table #5.3: Total 108 respondents were to respond in which 100 responded very well.
Females were more to respond then the men.
Females responded 52.8% (57 respondents)
Male responded 39.8% (43 respondents)
The remaining 7.4% (8 respondents) didn’t responded appropriately.
Table #5.4: As far as the analysis is concerned through banks, the respondents have high
percentage of U.B.L (United Bank Limited) i.e. 13%, after that H.B.L (Habib Bank Limited)
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
have high percentage of respondents i.e. 12%. Soneri Bank & PICIC Bank has very low
percentage of respondents i.e. 0.9%
Table #5.5: As age are concerned, youngsters having age from 18-28 responded at 79.6% i.e. 86
respondents
Table #5.6: In occupation, student responded more than the others occupations having a high
percentage of 54.6% i.e. 59 students responded out of 108 respondents.
Although 8 respondents didn’t response
Table #5.7: In account type respondents having high percentage of current account i.e. 60.2% of
65 respondents
Table #5.8: As awareness of electronic banking is concerned respondents responded very
positively. Respondents are well aware of electronic banking having a response percentage of
71.3% i.e. 77 respondents said yes out of 108 respondents.
Although 8 respondents didn’t response
Table #5.9: As providing of electronic banking is concerned respondents responded very
positively. Respondents are well aware of their bank that they are facilitating their customer with
electronic banking & having a response percentage of 66.7% i.e. 72 respondents said yes out of
108 respondents.
Although 8 respondents didn’t response
Table #5.10: Frequent e-banking service is concerned respondents response more of A.T.M
(Automated Teller Machine) then the other services provided to them. 76 respondents responded
at A.T.M with a responding percentage 70.4%.
Table #5.11: Table shows the mean, median & mode of the dependent & independents variables.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Table #5.12: As Successful Organization is a dependent variable, respondent are agreed towards
the success of an organization, with a percentage of 48.1% of 52 respondents out of 108
respondents.
Table #5.13: Core Service an independent variable, having neutral views about the variable, with
a percentage of 57.4% of 62 respondents out of 108 respondents.
Table #5.14: Respondents have neutral view towards the customer satisfaction. 47 responded
towards neutral view with a percentage of 43.5%.
Table #5.15: For the security purpose 53 respondents were agree to it with a percentage of
49.1%.
Table #5.16: 56 respondents were having neutral views about the website layout with a
percentage of 51.9%.
Now by applying histogram graphical representation for graph 5.1- 5.5, its shows the result in
graphical form
After the graphical presentation of the data, regression analysis were applied to the variables
having output in form of table 5.17
Mean were also applied to analyze the relationship between dependent variable over independent
variables with its result in the tables 5.18 – 5.21
After that in table 5.22 – 5.23 having the correlation analysis, reason behind is that the variable
are correlated with each other or not.
With the help of correlation analysis we have ease to conclude & analyze the hypothesis that
either to accept the hypothesis or reject the hypothesis.
6.2 Conclusion
With the interpretation of my study of the research paper & data collected from different level of
customers, therefore it can be concluded that the banks have been providing even e-banking
services, although also using manual banking system.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
The banks have not been completely fulfilling the requirements in terms of how quickly these
services are been providing to their customers. Beside the fact that the banks have offered a network
plan initially to its different branches to boost the standard level of the bank and consequently meet
competition and customers desires.
Those banks such as working on automation banking system either computerized banking or
electronic banking, ATM & etc, provided enhanced, efficient and rapid services to their customers.
Perhaps due to this advantage, banks expand over its branches for service providing facilities and
also try to get more and more accounts, businesses and customers in the market.
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
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PAKISTAN
APPENDIX
APEX-A
QUESTIONNAIRE
The following questions are on
“HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN”
Your information shall be kept strictly confidential.
Name:
Institution:
In which bank your account is:
Q: Age group: (Tick mark the box in which your age lies)
18-28 years 29-38 years 39-48 years
49-58 years
Q: Occupation:
Student Employee/Customer
Entrepreneur
Q: What is your account type?
Current Account Saving Account
PLS Account other
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Q: Are you aware about e-banking services?
Yes No
Q: Does your bank provide Internet banking?
? Yes ? No
? Don’t Know
Q: What is the most frequent e-banking service do you use?
Automated Teller Machine (ATM) Telephone Banking
Internet Banking (I-Banking) Other Specify____________________
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
APPEX-B
Strongly Disagree Disagree Neutral Agree Strongly Agree
1 2 3 4 5
Ques. STATEMENTS 1 2 3 4 5
SUCCESS/ SUCCESSFUL ORGANIZATION
1 You are well-aware of your bank…
2 Your bank is a successful organization…
3 Your bank proves to be a successful organization…
4 Your bank has simple, lean and flexible structure…
CORE SERVICES
1 You are well aware of services provided by your bank…
2 You are satisfied with the services provided to you by your bank…
3 Most of the times when you want to access the online service urgently,
the server is down… (Unreliable service)
4 You have difficulty in understanding and using the online banking
facilities…
5 You think that the technology provided by the bank is up-to-date…
CUSTOMER SATISFACTION
1 You are completely satisfied with your bank services…
2 You have difficulty in understanding and using the online banking
facilities…
HESITATION OF PEOPLE USING E-BANKING IN
PAKISTAN
Thank you for your precious time…… ?
3 Your bank facilitates you and encourages you to use online banking
facilities…
4 Your bank have friendly atmosphere that help in customer
satisfaction…
SECURITY
1 2 3 4 5
1 You trust the technologies that your bank has implemented in order to
keep online banking secure…
2 There is a security risk in using online banking services…
3 You trust the technologies that your bank has implemented in order to
keep online banking secure…
4 Your bank provides Consumer Protection…
5 Your bank is providing security schemas for the online transactions…
WEBSITE LAYOUT
1 Your bank has an unfriendly web site design, which is not easy to
navigate…
2 You think that websites providing e-banking should be available in
different languages…
3 The bank have the basic information that a customer is required of …
4 The given information on website is helpful to you….

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