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
 STRENGTHS WEAKNESSES
1. Unique Web Location 1. Costly to develop and upgrade
2. Cheap than traditional 2. Operational risk due to weaknesses in
3. Very wide area coverage system designing
4. Less time limits 3. Non-enforceability of contracts
5. Personalized services 4. Inaccurate processing
6. Reduced customer service cost 5. Sometimes compromise on data
7. Integrated customer base and 360 quality especially of qualitative data
degree customer view 6. Reputational risk due to
8. Fast transaction processing nonfunctioning or poor functioning
9. Easy to manage by banks than competitors
10. Multifunctional for banks 7. Technical staff needed to troubles
11. Strong and better B2B relationships shoot problems and to maintain
effectively
8. Chances of unauthorized data
alteration
9. More organizational commitment
needed
OPPORUNITIES THREATS
1. 85% population below 30 years, 1. Security risks of hacking systems
which are tech-savvy improving the 2. Risk of fraud and cyber crimes
population demand potential for e- 3. Legal risks due to uncertainty of
banking information and little knowledge
2. Economic growth in south asia and about law dealing electronic media
Pakistan also 4. More cross border risk of illegal
3. Continual stress on international trade monetary activities due to wider
and easy cross border electronic funds coverage
transfer due to globalization 5. Giant multinationals can overcome
4. Rapid internet boom in country and monopolize the credit in
5. Improving infrastructure with cheaper economies of small and poor nations
DSL, satellite cell phones, roads, etc. easily
6. Development of niche markets like 6. Competitors can easily copy as most
cheaper bank ATMs, softwares, of web services can easily be
hardwares, etc. accessed and copied
7. Outsourcing of jobs in west 7. Needs a higher literacy rate in
demanding electronic funds transfer community of customers not present
and e-banking on internet in Pakistan, so complications may
8. Wireless technological advancement arise
and future scope 8. Continual need of up gradation
9. Mobile phones rapid sale, a 9. Season/weather can also influence the
stimulator for large scale future electronic banking, like twice
mobile banking disconnection of International sea
fiber optic cable in Karachi last year

PEST Analysis of E-Banking in

Pakistan

Political Economic
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
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.
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 condition-
china, 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 cycle-
economy 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
8. Trading policies- supportive to
exports and international trade thus
favoring this e-banking also.
9. Funding and grants available-
banks are today investing heavily to
meet the increased competition in this
fields and funding is also available
from public sector to some extent.
Social
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
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
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 indicators-
GDP 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%
Technological
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 technologies-
software 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
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 technology-
expected that within 3-5 years e-
banking will become full mature in
Pakistan’s different regions
6. Manufacturing capacity-
Pakistan 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.