SWOT ANALYSIS E-BANKING Strength         Customer access to information 24 hours a day Timely access to information Ability to offer a customer

more than one method of retrieving information Sophisticated technology systems Diversity helps to capture different types of market. The ability to cut internal cost due to advanced technology Increased efficiency due to automation Increased accuracy of banking transaction

Weakness      High cost of service Continual wants of customers wants and needs Hostile feelings of employees due to possible pending layoffs due to automation Multiple option for the customers Initial investment in technology will be expensive

Opportunities    The ability to have a larger customer base Global expansion-This is an enormous market which will be a great opportunity in the future The ability to take advantage of the growing opportunity of internet banking

Threats     Continual changing technology. Uncertainty of the banking industry. Competition from the lower price operation. Possible failure of product due to non-acceptance of customers. Gen

SWOT Analysis of

E-banking in Pakistan

1. Unique Web Location 2. Cheap than traditional 3. Very wide area coverage 4. Less time limits 5. Personalized services 6. Reduced customer service cost 7. Integrated customer base and 360 degree customer view 8. Fast transaction processing 9. Easy to manage by banks 10. Multifunctional for banks 11. Strong and better B2B relationships

1. Costly to develop and upgrade 2. Operational risk due to weaknesses in system designing 3. Non-enforceability of contracts 4. Inaccurate processing 5. Sometimes 6. Reputational than competitors 7. Technical staff needed to troubles shoot problems and to maintain effectively 8. Chances alteration 9. More needed organizational commitment of unauthorized data compromise risk on due data to quality especially of qualitative data nonfunctioning or poor functioning

1. 85% population below 30 years, which are tech-savvy improving the population demand potential for ebanking 2. Economic growth in south asia and Pakistan also 3. Continual stress on international trade and easy cross border electronic funds transfer due to globalization 4. Rapid internet boom in country 5. Improving infrastructure with cheaper DSL, satellite cell phones, roads, etc.

1. Security risks of hacking systems 2. Risk of fraud and cyber crimes 3. Legal risks due to uncertainty of information and little knowledge about law dealing electronic media 4. More cross border risk of illegal monetary activities due to wider coverage 5. Giant multinationals can overcome and easily monopolize the credit in economies of small and poor nations

6. Development of niche markets like cheaper bank of ATMs, jobs softwares, in west hardwares, etc. 7. Outsourcing demanding electronic funds transfer and e-banking on internet 8. Wireless technological advancement and future scope 9. Mobile phones rapid sale, a stimulator for large scale future mobile banking

6. Competitors can easily copy as most of web services can accessed and copied 7. Needs a higher literacy rate in community of customers not present in Pakistan, so complications may arise 8. Continual need of up gradation 9. Season/weather can also influence the electronic banking, like twice disconnection of International sea fiber optic cable in Karachi last year easily be

PEST Analysis of E-Banking in Pakistan



1. Home Legislation- less today but chances of big legislation in near future. 2. Regional Legislation- quick in SAARC, creation of single currency and SAFTA in progress, favorable for e-banking 3. International Legislation- very rapid 4. Regulatory bodies- Present, SBP is playing a major role and providing guidelines for implementing e-banking over a huge scale. 5. Government policies- very favorable especially in Punjab. Overall, government is shifting to e-governance based upon electronic funds transfer and credit availability. 6. Government Term and chance

1. Home economy condition-very fine macroeconomic indicator with liquidity in market for transactions 2. Home economy trends- still in recovery phase but fastly moving to stability but with high inflation 3. Overseas economic conditionchina, Fareast, and southeast becoming focus by everyday 4. Taxation on e-banking- still present and much than western countries but chances are that it will reduce within next years gradually 5. Market and trade cycleeconomy in recovery phase and slowly shifting to boom, but still poverty an inflation are major hazard to purchasing power of middle class, vital for e-banking growth and penetration 6. Distribution trends- ATMs outlets working today, mobiles are also spreading with GPRS services, so distribution is little problem as credit cards and ATM card machines are also available at shopping lots 7. Market routes- first Karachi, Lahore and Islamabad then Faisalabad, Sailkot, Multan, Peshawar and Quetta covering central west

to change- no chances of turning the
e-banking initiatives and almost no chance of shifting government policies in next 3 years 7. Pressure groups local and

foreign- supporting funding under
strong check to avoid money laundering and terrorism in region, thus promoting e-banking through scheduled banks with data of all transactions properly documented & maintained.

8. Trading policies- supportive to exports and international trade thus favoring this e-banking also. 9. Funding and grants availablebanks are today investing heavily to meet the increased competition in this fields and funding is also available from public sector to some extent.

Punjab, Lahore, Karachi only and then extending to all country 8. Customer base- very divers and large about 10 million potential customers are expected in country’s above proposed regions 9. Specific economy indicatorsGDP 126 billion$, per capita about 800$, Karachi stock exchange index at 10000 points average, imports are at very high levels, inflation alarming, poverty level about 28%

1. Lifestyle trends- supportive to high lifestyle recommended in millennium goals of UN, Pakistanis lifestyle will favor e-banking especially in Lahore and Karachi 2. Demographics- about 80% population is below 30 years, tech savvy and can adapt to this trend rapidly after continual marketing campaigns for some time

1. Competing technology

development- today it appears that
there is no competitors technology to e-banking and perhaps it would alone rule all credit markets in next decade 2. Research funding- demands continuous research funds as competitors can develop a competitive advantage using better technological blend whose chance and scope present today 3. Dependent technologiessoftware industry, wireless internet , ATM hardware, call center industry, etc all are at boom today and have chances of further growth in next few years also 4. Replacement

3. Consumer attitudes
4. Media support- fine and e-banking should be marketed with proper support of film and TV especially 5. Image in society- positive and customer friendly but much lavish which should be decreased again by marketing and awareness schemes

6. Religious factor- not hindering today much 7. Advertising and awareness- poor today and demands that effective credit cards, ATM marketing in youth and middle aged people should be started with special packages for these segments of market 8. Fashion trends- although e-banking is itself a fashion trend but it should be capitalized much more 9. Major events- the biggest potential still unveiled in events in Pakistan like eids and Ramadan when huge liquidity is in market, and electronic banking can solve many liquidity problems at those times.

technologies/solutions- today
almost no potential replacement technology is present which can become a major threat 5. Maturity of technologyexpected that within 3-5 years ebanking will become full mature in Pakistan’s different regions 6. Manufacturing capacityPakistan cannot develop today most of technology and related equipment so imports are inevitable 7. Information and

communications factors- very
beneficial to banks and customers both strengthening their ties, also helpful to government to combat illegal funds transfer & terrorism 8. Consumer buying

mechanisms- Electronic Point of
sale (EPOS) and scanner based Credit/Debit cards machines installed at shopping malls, airports, railways, streets, banks branches, must be improved and weather resistant, they will be helpful for firms and banks both 9. Technology access and patents

by company- easy today as less
legislation is present

10. Technology access and usage

by customers- little or medium
only major cities and to some extent some sectors of economy have an access or affordability 11. Innovation potential- very high, chances of improvement in e-banking are very high, it is expected that it will meet personal financial to corporate finding requirement in future with very broad scope  eral competitiveness in the banking industry.

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