Review of electronic banking in Pakistan.

• Author: Kazmi, S. Kamal Hayder

Byline: S. Kamal Hayder Kazmi

To reap the advantages of technology, most of the banking organizations currently are trying to become automated. Thus eBanking simply refers to offer electronic modes of communications, chiefly the internet. The eBanking concept primarily deals with both telephone as well as computer-based banking. While e-Banking, internet banking, online banking or PC banking terms may be seen or used interchangeable. Electronic banking typically comprises of wire transfer, ATM, phone banking, EFT and credit cards. Because the provision of online financial services is secure, easy to use, cost saving and 24 hrs available to customers.

In Pakistan, e-commerce task force has been formulated and the banks have enlarged their online branch networks. The internet banking is now enhancing with more sophistication and services for corporate banking customer. Because of present technological developments in banking sector, old banking system has been shifted from a product-oriented system to a customer-oriented system as they introduced their new e-banking capacities.

For a long time period electronic and telecommunication networks have been utilized to deliver a variety of services. These services have been provided by dial-up connections, local and public networks, and through different instruments. Banking through digital channels has been gaining increasing popularity in the country in recent years. These channels are alternatives for faster delivery of banking services to a wide range of customers as also evident from the figures.

Payment Systems Infrastructure (31s t March, 2019)

Number of Banks (Branches) 45(15,549)

Commercial/ Specialized Banks Branches 14,383

Microfinance (Branches) 1,166

Number of Real Time Online Branches (RTOBs) 15,408

Number of banks having ATM machines 33

Number of banks having POS machines 9

Number of banks providing Internet Banking services 27

Number of Banks providing Mobile Phone Banking services 23

Number of Banks providing Call Center Banking services 22

Total Number of PRISM System Participants 45

Total number of ATMs Interoperable Switches 1

Total number of Cash Deposits Machines (CDMs) 49

The official report of the State Bank of Pakistan (SBP) revealed that Pakistan Real Time Interbank Settlement Mechanism (PRISM) is the only large value payment system being operated in Pakistan. It enables the transfer and settlement of high value interbank funds and enhances the overall efficiency of the...