E-banking system in Pakistan and its Impact on Customers Satisfaction: A Case Study of full-fledged Islamic Banks

Abstract

The study evaluates the customer’s satisfaction with e-banking system of Islamic Banks in Pakistan.E-banking is an online system whichisused in all types of banking transactions andhasbecomean unavoidable instrument for banking business and economic development. The population of the study consists of the customers of full-fledged Islamic Banks in Lahore. The objectives of this study were to examine the effect of e-banking on customer satisfaction. Data on electronic-banking system were collected by an organized questionnaire. A total of 300 respondents were decided but 282 respondents finalized the questionnaire. The SPSS-20 was adopted as a statistical tool to examine the data as collected from the bank’s customers. The study found that there is a significant associationbetween electronic banking and customer satisfaction after applying the multiple regressions. The study finds that all the variables have a positive impact on customer satisfaction. The level of satisfaction was approximately 69%, while the other22%customers’behaviourwas neutral and 9% were found dissatisfied. Keeping in view the result of data analysis, it is strongly recommended that the gap between customer level should be bridged customers satisfaction level so as to facilitate the Islamic Banking at its optimum level. The factorscausing dissatisfaction in the customer behaviourshould be addressed in very responsive manners. In the conclusion of this research indicates that e-banking has a positive impact on customers of Islamic Banks in Pakistan.