Continuous discourse on the subject of E-Banking and the challenges that financial institutions, customers and policy makers face, is essential as our financial sector moves ahead to transform and adopt an increased use of technology and automation.
This conference is therefore very timely and I congratulate the organisers and the participants for coming together to interact on a matter that touches our entire commercial landscape.
To adopt e-banking successfully, a bank's total mode of operation needs to change. It requires the integration of automated systems from the back end to the front end. It is therefore important for them to work with the right local partner over the long term to ensure that the transition phase is a smooth one.
Initially the major reason that many banks world-wide moved towards e-Banking was because there was an assumption that there would be a major reduction in transaction cost because brick and mortar investment would be drastically cut.
However, because of the lack of IT infrastructure and the access to the Internet being limited in developing countries, electronic banking became an add-on channel providing better and more efficient service to a bank's customers both locally and regionally.
In some cases, generating new revenue sources and retaining customers have become more significant drivers of automation although cost reduction remains one of the long-term drivers.
Adopting the available technology is not synonymous with e-banking success. Building economies of scale in e-banking is largely dependent on collaboration, building, collectively, open networks on open platforms (for eg. common networks for ATMs and clearing systems) and working together with a clearly defined e-banking strategy.
Member companies of the Pakistan Software Houses Association have spent several years in studying the banking and financial domain and are able to offer expertise to local and international banks in their quest towards e-Banking.
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