NEW WAVE ACROSS BANKING SYSTEM: ONLINE BANKING

(Ussama Javed, Kasur)

A new trend has been started in banking system of Pakistan and that is use of internet in conducting banking system called online banking. Customers are more willing for money transaction and other banking services through online banking. As competition among banks is increasing that’s why banks are more prone to bring such online services which are attractive and suitable for the customers.

Online banking is very easy and time saving for the customers who have the internet access. In this system people can use their computer system to access the sites of banks and then registered themselves by filling online account form and then demand, deposits and transfer there their money by facing servicing or transaction cost. Development of information technology in Pakistan creates new avenues to conduct the banking system just as mobile banking. Many software engineering firms also offer professional software’s for online banking activities. Customers are very happy with security of this system because banks who are conducting online banking also have their physical possession in Pakistan mean they are not totally virtual banks. From the fiscal year of 2013 the trend of electronic payments has been increasing. According to the report of state bank of Pakistan volume and value of E-payments transaction in Pakistan was increased by 15% to 74.86 million and 5% to 6.5 trillion rupeesas compared during first quarter of 2012-2013 as compared to same quarter previous year 2012. And there is a consistent growth in the development of online banking.According to technology times R.s 84 billion were transferred through online banking in FY 2010.

Banks provide different online services to the customers, like online utility bills payments, funds transferring, and payment of education institutions fees, international trading, online shopping and much more. One of the biggest advantages for the public is, it is time saving system, now people do not wait for long queues for bills and go physically to banks for funds transaction. They can do it at home. Online banking also helps to protect bank from overstaffing and paper cost.

So we can say that online banking is a good step in the banking system of Pakistan, that’s why Now 9,412 branches out of 10,111 bank’s branches offer Real time services across the Pakistan. The volume and value of real time banking servicers transactions also increased by 21 present and 4 present respectively as compared to transactions in the first quarter of the previous fiscal year 2012.

Ussama Javed
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