Security, Perception, and Practices: Challenges Facing Adoption of Online Banking in Pakistan

Online banking is a contemporary mode and a technological channel to facilitate the emerging demands of customers today. Increase in number of customers for online banking as a matter fact is related to customer’s awareness in a geographical space. Many customers today are adopting online banking through internet for their financial transactions especially in the current COVID-19 pandemic situation, however, due to lack of awareness, expertise and connectivity resources, a majority of prospect customers still have not adopted this new mode of transaction in Pakistan. The main objective of this study is to know the customers’ perception regarding the usage of online banking in Karachi Pakistan. Most of the researchers so far have suggested that mostly the customers are unaware about online banking services and the reason, moreover due to lack of trust among customers on online banking services, customers are reluctant to adopt this medium for the financial transactions. This research project thus examines the customer’s trust, perception, problems related to online banking and suggests about online banking concerns especially in the context of Pakistan. This study explains that mostly customers prefer online banking services over branch banking due to its reliability, convenience, safety, speed and security, user-friendliness, and error less system. The findings of this study will provide the banks the answer to the questions that how they can provide online banking better services and what are the major issues that should be reduces in society to satisfy customers in a better way, so that they can compete their competitors in the industry and overall increase the number of online banking customers.