International Journal of Computer Science Issues

More than a traditional journal...

Internet Banking has become widespread in most developed countries, while the Financial Services Sectors in most developing countries are lagging behind with this technology. Despite the benefits afforded by such online activity, Pakistani financial institutions, in particular, have not yet experienced the full potential of this form of electronic commerce, due in part to the weakness and instability of the country\'s financial system. This is coupled with the fact that the citizens have lost confidence in the Pakistan Financial Services Sector in 1990s. The objectives of this research are two-fold. The first aim is to investigate the feasibility of adopting Internet Banking within the Pakistan Financial Services Sector. The second objective is to demonstrate how Internet Banking may serve as a dual solution in restoring the viability of the Pakistan financial institutions and restoring investor confidence. From the literature review and surveys undertaken, the research examines the various benefits, which Internet Banking offers as well as its drawbacks. A comparative study reveals few reasons why financial institutions in most developing countries might not be able to embark on Internet Banking; whilst their counterparts in most developed countries are able to capitalize fully on such e-commerce venture. The paper employs survey data to measure the extent to which financial institutions in Pakistan use e-commerce and to investigate the opportunities for further growth (that is, the likelihood of Internet Banking) within the overall Financial Sector. The research highlights a number of obstacles that must be overcome if the Pakistan financial institutions decide to actively use the Internet to provide banking services. Possible solutions that may be inaugurated to overcome the respective barriers are proposed. Finally, a summary and conclusion with recommendations are presented.