LAHORE: Regardless of the rise in number of internet banking users, its adoption is still below the anticipated levels due to substandard service quality and client’s dissatisfaction, said banking sector experts.
They said some 24 banks have a volume share of total internet banking transactions in Pakistan. State Bank of Pakistan had also reported back in 2013 that 3.9 million transactions occurred with more than one million users of internet banking. In Pakistan, again the bank said in 2015 that a squeak growth of only 3 percent was observed in the implementation of internet banking.
However, the lockdown of business activities during the spread of Coronavirus pandemic, there was a significant rise in the trend of internet banking, which is improving with every passing day.
Syed Ali Raza, an expert, said the customers in the Pakistani online banking and e-service markets, build their perceptions based on the interactivity of the web page.
He said customers are more attracted to banks that allow faster transactions via online portals which are easily available. Conversely, clients lay more stress in the effectiveness of the website while associating themselves with these financial institutes owing to which banks should concentrate tactically on enhancing client’s awareness regarding the acceptance of new technology (online banking system). In this way banks will be able to achieve competitive edge, he added
Amna Umar, another expert, pointed out that clients want their transactions to occur accurately, timely and quickly, in an online banking setting and high quality of services provided by the bank can drive clients’ gratification, value, faith and obligation and so online banking should take actions to fulfill these demands of customers.
She said banks should deliver their clients an effective website with an appropriate setting and upgraded technological development in order to deliver first-class condition of services. Furthermore, greater emphasis is placed on the physical (system, functions and interface) and psychological attributes (services, information, attitudes) in comprehending the changing aspects of virtual clients’ behavior.
Today, said Muhammad Asif, clients are provided with numerous different banking portals which can make them switch to other banks hence, bank’s websites should focus more on improving their functionality and user interface and also make their online portals attractive.
He said Pakistan banks should invest more on the efficiency dimension as it is the strongest predictor of electronic customer satisfaction and when consumers are satisfied so ultimately it boosts electronic customer loyalty. Moreover, to make positive relationship between electronic customer satisfaction and electronic customer loyalty, Internet banking should give first priority to customers’ needs and satisfaction so they can be more loyal to Internet banking service.
Additionally, he added, competition is high, their Internet banking system should be designed with a fast processing time for customer requests and issues in order to attract and retain customers of banks.
Another expert Abdul Samad said the banking sector apps should be simple to use and user friendly while the services should be reliable and secure. In the context of Pakistan, he said, customers are reluctant to trust online services easily but it is observed that when customers perceived quality factors so definitely they will likely to adopt such technology.
Copyright Business Recorder, 2020
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