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INTRODUCTION

History of Computer:

A computer is a machine that manipulates data according to a list of

instructions. The first devices that resemble modern computers date to the mid-20th

century (around 1940 - 1945), although the computer concept and various machines

similar to computers existed earlier. Early electronic computers were the size of a large

room, consuming as much power as several hundred modern personal computers.

Modern computers are based on tiny integrated circuits and are millions to billions of

times more capable while occupying a fraction of the space.

Today, simple computers may be made small enough to fit into a wristwatch and bepowered from a watch battery. Personal computers in various forms are icons of the

Information Age and are what most people think of as "a computer"; however, the most

common form of computer in use today is the embedded computer. Embedded computers

are small, simple devices that are used to control other devices for example; they may

be found in machines ranging from fighter aircraft to industrial robots, digital cameras,

and children's toys.

Introduction to Internet:

The Internet is a worldwide, publicly accessible series of interconnected computer

networks that transmit data by packet switching using the standard Internet Protocol (IP).

It is a "network of networks" that consists of millions of smaller domestic, academic,

business, and government networks, which together carry various information and

services, such as electronic mail, online chat, file transfer, and the interlinked web pages

and other resources of the World Wide Web (WWW).

Internet access:

Common methods of home access include dial-up, landline broadband (over coaxial

cable, fiber optic or copper wires), and satellite and 3G technology cell phones.


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Public places to use the Internet include libraries and Internet cafes, where computers

with Internet connections are available. There are also Internet access points in many

public places such as airport halls and coffee shops, in some cases just for brief use while

standing. Various terms are used, such as "public Internet kiosk", "public access

terminal", and "Web payphone". Many hotels now also have public terminals, thoughthese are usually fee-based. These terminals are widely accessed for various usages like

ticket booking, bank deposit, online payment etc. Wi-Fi provides wireless access to

computer networks, and therefore can do so to the Internet itself. Hotspots providing

such access include Wi-Fi cafes, where would-be users need to bring their own wireless-

enabled devices such as a laptop orPDA. These services may be free to all, free to

customers only, or fee-based. A hotspot need not be limited to a confined location. A

whole campus or park, or even an entire city can be enabled. Grassroots efforts have led

to wireless community networks.

High-end mobile phones such as smart phones generally come with Internet access

through the phone network. Web browsers such as Opera are available on these advanced

handsets, which can also run a wide variety of other Internet software. More mobile

phones have Internet access than PCs, though this is not as widely used. An Internet

access provider and protocol matrix differentiates the methods used to get online.

Internet Service Providers (ISP):

Here is list of some Internet service providers:

Ak Net http://www.ak.net.pk

Apollo Online http://www.apollo.net.pk

Asia Online http://www.aol.net.pk

Aster Net http://www.aster.com.pk

Best Net http://www.best.net.pk

Brain Net http://www.brain.net.pk

Breeze Net
http://www.ak.net.pk/http://www.apollo.net.pk/http://www.aol.net.pk/http://www.aster.com.pk/http://www.aster.com.pk/http://www.brain.net.pk/http://www.ak.net.pk/http://www.apollo.net.pk/http://www.aol.net.pk/http://www.aster.com.pk/http://www.aster.com.pk/http://www.brain.net.pk/


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http://www.breeze.net.pk CompuNet Online http://www.compol.com

COMSATS http://www.comsats.net.pk

CubeXS

http://www.cubexs.net.pk CyberAccess http://www.cyberaccess.com.pk

CyberNet http://www.cyber.net.pk

Digicom http://www.digicom.net.pk

Fascom http://www.fascom.com

Gerry's Net http://www.gerrys.net

GlobalNet http://www.global.net.pk

IBM http://www.ibm.net

ICNS http://www.icns.com.pk

Info Net http://www.inet.com.pk

Infolink http://www.infolink.net.pk

MegaNet http://www.mega.net.pk

MS Net http://www.ms.net.pk

Net 21 http://www.net21pk.com

NetAccess http://www.netxs.com.pk

NetAsia http://www.netasia.com.pk

Nexlinx http://www.nexlinx.net.pk

Nigsun Online http://www.compcare.com.pk

Pak Net http://www.paknet.ptc.pk Pakistan Online http://www.pol.com.pk
http://www.breeze.net.pk/http://www.compol.com/http://www.comsats.net.pk/http://www.cubexs.net.pk/http://www.cyberaccess.com.pk/http://www.cyber.net.pk/http://www.digicom.com.pk/http://www.fascom.com/http://www.gerrys.net/http://www.gerrys.net/http://www.global.net.pk/http://www.ibm.net/http://www.ibm.net/http://www.icns.com.pk/http://www.inet.com.pk/http://www.infolink.net.pk/http://www.mega.net.pk/http://www.ms.net.pk/http://www.net21pk.com/http://www.netxs.com.pk/http://www.netasia.com.pk/http://www.nexlinx.net.pk/http://www.compcare.com.pk/http://www.paknet.ptc.pk/http://www.pol.com.pk/http://www.breeze.net.pk/http://www.compol.com/http://www.comsats.net.pk/http://www.cubexs.net.pk/http://www.cyberaccess.com.pk/http://www.cyber.net.pk/http://www.digicom.com.pk/http://www.fascom.com/http://www.gerrys.net/http://www.global.net.pk/http://www.ibm.net/http://www.icns.com.pk/http://www.inet.com.pk/http://www.infolink.net.pk/http://www.mega.net.pk/http://www.ms.net.pk/http://www.net21pk.com/http://www.netxs.com.pk/http://www.netasia.com.pk/http://www.nexlinx.net.pk/http://www.compcare.com.pk/http://www.paknet.ptc.pk/http://www.pol.com.pk/


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Pienet Global http://www.pienet.net

RoboNet Int'L http://www.robonets.com

SAT COM http://www.sat.com.pk

SHOA http://www.shoa.net

Sky Net http://www.netcard.net.pk

Space Net http://www.space.net.pk

SPARCOM http://www.sparcom.net.pk

Super Net http://www.super.net.pk

The Flash Net

http://www.theflash.net Top Net http://www.top.net.pk

World Online http://www.wol.net.pk

WorldTel Internet http://www.wtmeca.net

Zoooom Net http://www.zoooom.net

ISP in Multan:

In Multan

Super Net

Cyber Net

Pak Net

Wol Net

Dancom

Comsats

are available.

Electronic Banking:
http://www.pienet.net/http://www.pienet.net/http://www.robonets.com/http://www.sat.com.pk/http://www.shoa.net/http://www.shoa.net/http://www.netcard.net.pk/http://www.netcard.net.pk/http://www.space.net.pk/http://www.sparcom.net.pk/http://www.super.net.pk/http://www.theflash.net/http://www.theflash.net/http://www.top.net.pk/http://www.wol.net.pk/http://www.wtmeca.net/http://www.wtmeca.net/http://www.zoooom.net/http://www.pienet.net/http://www.robonets.com/http://www.sat.com.pk/http://www.shoa.net/http://www.netcard.net.pk/http://www.netcard.net.pk/http://www.space.net.pk/http://www.sparcom.net.pk/http://www.super.net.pk/http://www.theflash.net/http://www.top.net.pk/http://www.wol.net.pk/http://www.wtmeca.net/http://www.zoooom.net/


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Pros and cons of e-banking:The biggest plus to banking online is the price. Because Internet-only banks don't

have the expense of maintaining hundreds of local branches, their overall cost of doing

business is lower than it is for their traditional counterparts. They pass the savings on to

consumers in two main ways: higher interest and lower fees.

Another big advantage is that you'll have 24-hour access to your account, for free

Deposits:

Although you may regularly visit your bank branch to make deposits, that's not anoption with Internet-only banks. If your employer doesn't offer direct deposit --

electronically wiring your paycheck to your bank -- you'll have to use snail mail (the

regular old U.S. Postal Service) to get money into your account.

If you live paycheck to paycheck, this might be tough for you. You'll have to wait about

five business days for your check to get to your account and then another few days for the

check to clear. So if you don't have extra money in your account as a cushion, you'll have

to factor in the extra time it will take before new deposits are available. And if your check

ever gets lost in the mail, you could be out of luck.

ATM availability:

Check the ATM availability offered by the Internet-only bank you're considering.

As you've probably experienced, many banks charge fees to no customers who use their

ATMs. Because Internet-only banks don't have their own ATM network, you'll be charged

no customer fees by the banks whos ATMs you use.

Internet-only banks are trying to offset this negative by reimbursing account holders for

up to four ATM no customer fees per month. That means that even though you'll becharged the no customer fee, the Internet-only bank will give you your money back.

Internet-only banks understand these problems, and many are taking steps to overcome

them. For example, they're negotiating with large ATM networks to let Internet-only

customers make deposits at local ATMs and have those deposits treated just as if they


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were made at a local bank. Ask the Internet-only bank you're interested in what they're

doing to fix the issues you're most concerned about. You may find you like the answers

you're given.

To research which Internet bank best suits your banking style, visit Bankrate.com. Don'tlet your bank get the best of you and your wallet. Instead, flip on your computer and treat

yourself to a little more cash

The SMS Banking channel also acts as the banks means of alerting its

customers, especially in an emergency situation; e.g. when there is an ATM fraud

happening in the region, the bank can push a mass alert (although not subscribed by all

customers) or automatically alert on an individual basis when a predefined abnormal

transaction happens on a customers account using the ATM or credit card. This

capability mitigates the risk of fraud going unnoticed for a long time and increases

customer confidence in the banks information systems.

The benefits of electronic transacting have an increasingly important role to

play in assisting the small to medium businesses (SMB) sector to run its operations more

effectively as well as at a lower cost than traditional financial management mechanisms -

many of which still revolve around the company chequebook. Addressing this

requirement, most banks have introduced systems that are specifically tailored to the

needs of the SMB.

Perhaps oddly, electronic banking systems have enjoyed particularly good

acceptance at what can be considered to be opposite ends of the market - large

corporations and private individuals. Large corporations are familiar with the use of

electronic payment systems such as magtape and electronic data interchange (EDI), while

most individuals are familiar with the Internet and satisfied that the security protecting

online banking systems is sufficient to protect their funds.

But the SMB environment tends to lag somewhat in the adoption of Internet

banking solutions.

Most large corporations have invested in software applications such as

Enterprise Resource Planning systems, Supply Chain Management systems, Customer

Relationship Management systems and more to achieve the benefits associated with

process automation. They are also familiar with the benefits of vendor collaboration to


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identify solutions that help contain costs, enhance process efficiencies and improve

productivity. This was done by granting mutual access to business systems, through

interfacing with supplier - such as the ERP system 'talking to' the bank's electronic

banking system - to automation aspects of cash management and treasury.

However, many SMBs are under the impression that such software applicationsare too complex and costly for their business requirements, or are not sufficiently

confident in the security of online systems.

The history of electronic banking systems provided by banks saw these

traditionally focused at the money management needs of large corporate. As such, many

SMB owners perceive that Internet banking facilities are directed predominantly at larger

companies. However, most banking institutions have introduced systems that are

specifically directed at the requirements of the SMB, both in terms of functionality and

pricing. SMBs that are used to performing simple banking activities, for example viewing

account balances and transferring funds between accounts via ATM or phone-banking,

can use a multi-user Internet banking platform to perform these banking activities and

more via the Internet.

At the click of a mouse, SMBs can have easy access to their most updated and

detailed financial information anywhere in the world, at anytime. Using such systems

also allows the SMB to improve the costs of managing finances - having immediate real-

time access to exact available cash positions in their bank accounts supports planning and

decision-making, thus resulting in better control over their cash flow.

Additionally, human resources is another significant cost centre for most

SMBs. With the use of Internet banking, SMBs can cut down on manual processes and

deploy staff to do more value-added work. Internet banking allows the SMB to make

local or overseas payments to third parties, apply for letters of credit, contract foreign

exchange rates and more, improving productivity and saving time by obviating the need

to make a trip to the bank branch, stand in a queue and wait for transactions to be

processed. It also introduces automation to the payment process - once a beneficiary is

created on the system, it is a matter of 'point and click' to effect payment.

Contrast these benefits to a cheque-based system, which requires writing the

cheque, then delivery or deposit by a driver, or collection by the supplier - an expensive,

cumbersome, time- consuming process.


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The benefits of using Internet banking systems become even more apparent when it

comes to processing urgent and time critical transactions - employees no longer need to

rush documents to the bank only to find out that they have missed the cut-off time.

The evolution of the services offered by most banks means SMBs should see the

bank as far more than just a provider of finance and money handling services. Most

leading banks have become a centre from which businesses can source a variety of

service offerings and options that can help improve business management. And banks are

usually forerunners in technology adoption, such as the implementation of e-business

strategies and solutions that help customers improve their financial position. They are

also keen to assist their customers to move into Internet-based financial activities. SMBs

should therefore make their bankers their financial and business partners in accessing

appropriate online banking solutions that can provide better financial management while

also offering a lower cost of banking.

Types of e-banking:

Following are the types of e-banking

Internet banking

Mobile banking

ATM

Telephone banking

Internet Banking:

Internet banking refers to the use of the Internet as a remote delivery channel for

banking services. Such services include traditional ones, such as opening a deposit

account or transferring funds, among different accounts, and new banking services, such

as electronic bill payment, allowing customers to receive and pay bills via a banks

website. Banks offer Internet banking in two main ways. An established bank with

physical offices can establish a website and offer Internet banking to its customers in

addition to its traditional delivery channels. A second alternative is to establish a

virtual, branchless, or Internet-only bank. The computer server that lies at the


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heart of a virtual bank may be located in an office that serves as the legal address of such

a bank, or at some other location. Virtual banks may offer their customers the ability to

make deposits and withdraw funds via ATMs or other remote delivery channels owned by

other institutions.

Features: Internet banking has following features

Time and Space:

By eliminating the limitations of time and distance, electronic financial

transactions can make cross-border transactions easier and thus make it possible to

provide services to customers on a global scale. In effect, online finance may

eventually lead to complete globalization of financial services, making the national

borders irrelevant.

Electronic financial transactions:

Electronic financial transactions have helped create new services such as the

virtual financial site that includes services crossing the traditional borders

between financial services as well as aggregation that allows consumers to obtain

consolidated information about their financial accounts in one place.

o Electronic bill presentment and payment - EBPP

o Funds transfer between a customer's own checking and savings accounts,

or to another customer's account

o Investment purchase or sale

o Loan applications and transactions, such as repayments

Security:

Since electronic financial transactions, especially those in online retail

banking, are being conducted on open networks centered on the Internet, many

challenges arise in terms of transaction security, consumer protection and privacy.

The existing systems of financial regulation and supervision are being amended to

reflect the changes in technology.


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Online banking user interfaces are secure sites and traffic of all information -

including the password - is encrypted, making it next to impossible for a third party

to obtain or modify information after it is sent. However, encryption alone does not

rule out the possibility of hackers gaining access to vulnerable home PCs and

intercepting the password as it is typed in (keystroke logging). There is also thedanger of password cracking and physical theft of passwords written down by

careless users.

Many online banking services therefore impose a second layer of security.

Strategies vary, but a common method is the use of transaction numbers, or TANs,

which are essentially single use passwords. Another strategy is the use of two

passwords, only random parts of which are entered at the start of every online

banking session. This is however slightly less secure than the TAN alternative and

more inconvenient for the user. A third option is providing customers with security

token devices capable of generating single use passwords unique to the customer's

token (this is called two-factor authentication or 2FA). Another option is using

digital certificates, which digitally sign or authenticate the transactions, by linking

them to the physical device (e.g. computer, mobile phone, etc). Other banks have

responded not with security tokens or digital certificates, but by setting up a

combination of controls that recognize a customer's computer, ask additional

challenge questions for risky behavior, and monitor for fraudulent behavior

Electronic Fund Transfer:

Electronic funds transfer orEFT refers to the computer-based systems used to

perform financial transactions electronically. The term is used for a number of

different concepts:

cardholder-initiated transactions, where a cardholder makes use of a payment card

electronic payments by businesses, including salary payments

electronic check (or cheque) clearing


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Card Based EFT:

EFT may be initiated by a cardholder when a payment card such as a credit card

or debit card is used. This may take place at an automated teller machine (ATM)

or point of sale (EFTPOS), or when the card is not present, which covers cards

used for mail order, telephone order and internet purchases.

Transaction types

A number of transaction types may be performed, including the following:

Sale: where the cardholder pays for goods or service.

Refund: where a merchant refunds an earlier payment made by a cardholder.

Withdrawal: the cardholder withdraws funds from their account, e.g. from an

ATM. The term Cash Advance may also be used, typically when the funds are

advanced by a merchant rather than at an ATM.

Deposit: where a cardholder deposits funds to their own account (typically at an

ATM).

Cashback: where a cardholder withdraws funds from their own account at the

same time as making a purchase.

Inter-account transfer: transferring funds between linked accounts belonging tothe same cardholder

Payment: transferring funds to a third party account

Inquiry: a transaction without financial impact, for instance balance inquiry,

available funds inquiry, linked accounts inquiry, or request for a statement of

recent transactions on the account.

Administrative: this covers a variety of non-financial transactions including PIN

change.

The transaction types offered depend on the terminal. An ATM would offer

different transactions from a POS terminal, for instance


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Online banking puts the power of banking into the hands of the customer and allows

the customers to self-service themselves with all their banking needs, just as

customers have become used to getting money from an ATM instead of going to the

cash desk in the bank. With this online service, customers can view their account

details, review their account history, transfer funds, order checks, pay bills, re-orderchecks and get in touch with the customer care department of the bank. In most

cases, there is no special software to install other than a web browser and many

banks do not charge for this service

Mobile Banking:

Mobile banking is a term used for performing balance checks, account

transactions, payments etc. via a mobile device such as a mobile phone. Mobile banking

today (2008) is most often performed via SMS or the Mobile Internet but can also use

special programs downloaded to the mobile device.

Mobile Banking can be said to consist of three inter-related concepts:

Mobile Accounting

Mobile Brokerage

Mobile Financial Information Services

Most services in the categories designated Accounting and Brokerage are transaction-

based. The non-transaction-based services of an informational nature are however

essential for conducting transactions The accounting and brokerage services are therefore

offered invariably in combination with information services. Information services, on the

other hand, may be offered as an independent module.

Trends in mobile banking:

The advent of the Internet has revolutionized the way the financial services

industry conducts business, empowering organizations with new business models and

new ways to offer 24x7 accessibility to their customers. The ability to offer financial


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transactions online has also created new players in the financial services industry, such as

online banks, online brokers and wealth managers who offer personalized services,

although such players still account for a tiny percentage of the industry. Over the last few

years, the mobile and wireless market has been one of the fastest growing markets in the

world and it is still growing at a rapid pace. According to the GSM Association andOvum, the number of mobile subscribers exceeded 2 billion in September 2005, and now

exceeds 2.5 billion (of which more than 2 billion are GSM).According to a study by

financial consultancy Celent, 35% of online banking households will be using mobile

banking by 2010, up from less than 1% today. Upwards of 70% of bank center call

volume is projected to come from mobile phones. Mobile banking will eventually allow

users to make payments at the physical point of sale. "Mobile contact less payments will

make up 10% of the contact less market by 2010.Many believe that mobile users have

just started to fully utilize the data capabilities in their mobile phones. In Asian countries

like India, China, Indonesia and Philippines, where mobile infrastructure is

comparatively better than the fixed-line infrastructure, and in European countries, where

mobile phone penetration is very high (at least 80% of consumers use a mobile phone),

mobile banking is likely to appeal even more. This opens up huge markets for financial

institutions interested in offering value added services. .Mobile devices, especially smart

phones, are the most promising way to reach the masses and to create stickiness among

current customers, due to their ability to provide services anytime, anywhere, high rate of

penetration and potential to grow.

Features:

Mobile banking can offer services such as the following:

Account Information

Alerts on account activity or passing of set thresholds

1. Monitoring of term deposits

2. Access to loan statements

3. Access to card statements


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4. Mutual funds / equity statements

5. Insurance policy management

6. Pension plan management

7. Status on cheque, stop payment on cheque

Payments & Transfers

1. Domestic and international fund transfers

2. Micro-payment handling

3. Mobile recharging

4. Commercial payment processing

5. Bill payment processing

6. Peer to Peer payments

Investments

1. Portfolio management services

2. Real-time stock quotes

3. Personalized alerts and notifications on security prices

Support

1. Status of requests for credit, including mortgage approval, and insurance coverage

2. Check (cheque) book and card requests

3. Exchange of data messages and email, including complaint submission and

tracking

4. ] ATM Location

Content Services

1. General information such as weather updates, news

2. Loyalty-related offers

3. Location-based services


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Based on a survey conducted by Forrester, mobile banking will be attractive mainly to the

younger, more "tech-savvy" customer segment. A third of mobile phone users say that

they may consider performing some kind of financial transaction through their mobile

phone. But most of the users are interested in performing basic transactions such as

querying for account balance and making bill payment.

ATM:

An automated teller machine (ATM) is a computerized telecommunicationsdevice that provides the customers of a financial institution with access to financial

transactions in a public space without the need for a human clerk or bank teller. On most

modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic

stripe or a plastic smartcard with a chip, that contains a unique card number and some

security information. Security is provided by the customer entering a personal

identification number (PIN).

Mechanical cash dispenser was developed and built by Luther George Simian

and installed in 1939 in New York City by the City Bank of New York, but removed after

6 months due to the lack of customer acceptance.

The ATM got smaller, faster and easier over the years. Thereafter, the history of

ATMs paused for over 25 years, until De La Rue developed the first electronic ATM,

which was installed first in Enfield Town in North London on 27 June 1967 by Barclays

Bank.. This instance of the invention is credited to John Shepherd-Barron, although

various other engineers were awarded patents for related technologies at the time.

Shepherd-Barron was awarded an OBE in the 2005 New Year's Honors List. The first

person to use the machine was Reg Varney of "On the Buses" fame, a British Television

programme from the 1960s. The first ATMs accepted only a single-use token or voucher,

which was retained by the machine. These worked on various principles including

radiation and low-coercively magnetism that was wiped by the card reader to make fraud

more difficult. The idea of a PIN stored on the card was developed by the British

engineer John Rose in 1965.


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ATMs first came into wide UK use in 1973; the IBM 2984 was designed at the

request of Lloyds Bank. The 2984 CIT (Cash Issuing Terminal) was the first true Cash

point, similar in function to today's machines; Cash point is still a registered trademark of

Lloyds TSB in the U.K. All were online and issued a variable amount which was

immediately deducted from the account. A small number of 2984s were supplied to aUSA bank.

Using an ATM, customers can access their bank accounts in order to make cash

withdrawals (or credit card cash advances) and check their account balances. ATMs are

known by various casual terms including automated banking machine, money machine,

cash machine, hole-in-the-wall.

Telephone banking:

The Enhanced Telephone is a telephone developed by Citibank in the late 1980sfor customers to do banking and other financial transactions from their home. The official

launch date was February 26-27, 1990.The first version of the Enhanced Telephone, the

99A model, was beige and featured a monochrome CRT screen. Because of its chunky

appearance, several developers dubbed it the "sawed-off ski boot. The physical hardware

was manufactured by Transaction Technologies Incorporated (TTI).The second version of

the Enhanced Telephone, the P100 model, was manufactured by Philips Electronics and

featured an LCD screen and sleeker styling. The font was developed by Bit stream Inc.

Software for the Enhanced Telephone was written in a proprietary language called HAL

(Home Application Language).The Enhanced Telephone ultimately failed to become a

viable product because by the time it was introduced, home banking via PCs was

becoming more common. As the World Wide Web became popular in the early 1990s, the


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Online banking is rapidly becoming more and more popular as consumers recognize the

advantages online banking has to offer. For one most banks charge fewer fees if you take

advantage of their online banking services. You can also stop receiving paper statements

if you like in many cases and conduct 95% of your business over the Web when you take

advantage of Internet banking.

What Internet Banks Do?

What to Internet Banks do? The same things traditional banks do. They hold onto our

money and lend it out to others respectively. The manage loans and help us keep track of

our finances. Chances are if you own a bank account at a traditional bank they offer some

type of Internet banking or online services. The next time you stop into your branch

office you should ask them about online banking. You may find once you start you have

no desire to go back to traditional banking.

For those that have a hard time keeping track of paper statements, Internet banking is a

life saver. Internet banking is also advantageous for frequent travelers that need to keep a

close eye on their finances from abroad.


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Literature Review

Case Study:

Analyzing the Factors that Influence the Adoption

of Internet Banking in MauritiusKesseven Padachi, Sawkuk Rojid, and Boopen SeetanahSchool of Public Policy & Management, University ofTechnology, Mauritius, Pointes-Aux-Sables, [email protected]; [email protected];[email protected]

Conclusion:

This study investigated the factors that influence the adoption of internet

banking for the case of

the emerging African economy of Mauritius. Mauritius provides a good case

study as the country

is actually one of the best performers of the continent and moreover has a

relatively well developed financial system and communication technology as

well. Specifically this work analyzed in the first instance the most widely use

internet banking services and subsequently investigated the relative

importance of elements such as accessibility and cost of computers and

internet, customers reluctance, awareness of the service, security of internet

banking transactions, convenience and ease of use influence the usage of

Internet banking.

Using survey analysis, results shows that the mostly used services are inter

account transfer,

payment to other personal account, transfer to credit card account, recharge

mobile phones, standing order transactions, savings, current and fixed


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deposit account application and debit/ credit card. The results are confirmed

by the use of t-tests. Comparing demographic variables of the internet

banking users to the non-internet banking users, the analysis shows that

there is no

significant difference between the two groups of users, for the variable age

group and the education level of the respondents. This is however not the

case for the mean monthly income.

Using factor analysis to identify the factors affecting the adoption of internet

banking in Mauritius we found that the most significant factor is ease of use

and that other important elements are reluctance to change, trust and

relationship in banker, cost of computers, Internet accessibility, convenience

of use and security concerns.

Further analysis using cross tabulations relating selected factors and usage of

internet banking

facilities detected the presence of important statistical relationship between

awareness, access to

Internet facility, length of banking relationship, people working in the Internet

banking/finance

sector, education level in the category post graduate and also income group

with the usage of

internet banking.

The results will have important implications and is believed to be very helpful

for the Mauritian

banking sector and also for the government since both will be aware of the

relatively important

elements that should be taken into account to formulate appropriate

strategies, foster this service

and thus reaping out its benefits. While this exploratory research has

revealed some interesting

results, one should be careful on some of its limitations related essentially to

its sample size.

Although we believe that this study is quite deep, we still believe that it can

be further extended


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to include more respondents from different sectors and age groups to make it

more realistic and

more reliable from the perspective of policy analysis. Moreover, analysis can

be made for different

age groups and possible people working in different sectors to capture the

micro details of

Internet banking. There exist in the literature similar works on different

countries. Perhaps it

might be interesting to survey these studies and make a comparison to see

whether there exist

major differences in different countries. Finally a regression analysis can be

performed to find out

the main determinants affecting Internet banking in Mauritius.

Research Design


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Steps involved in Research Process:

1) Defining the problem:

E-banking ( Electronic Banking ) `is the most growing field of today. E-banking is

well established and is being used heavily throughout the world. But in our city

Multan it is not that much popular. People are sill unaware of the facilities provided

by banks electronically or there may be some faults in the services provided by the

banks or there could be some other reasons. The point of focus is that e-banking is

not much popular in Multan. People are not enjoying the great facilities of e-

banking. Majority of population Is using old, traditional way of banking. They feel

it more convenient and reliable by going to banks themselves and made their

payments or depositing cash or having some withdrawals etc.The question is where the problem exists, it can be

Unawareness

Hesitation to new technology

Unavailability of resources

Difficulty in understanding the terminologies

Users expect more etc.

Problem Statement:

Reason behind less popularity of e-banking in

Multan.

2) Planning a Research Design:

Research design is the master plan specifying the methods and procedures for

collecting and analyzing the needed information. There are four types of

research design,

Survey ( Interview, Questionnaire)

Experiment (Laboratory, Field)

Secondary Data

Observation


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We have chosen survey, survey is a research technique in which information is

gathered from a sample of people using a questionnaire or by conducting

interviews.

We have surveyed different banks, users and nonusers of e-banking, to getinformation about the actual reason behind less popularity of e-banking in

Multan. We have used questionnaire and also conducted interviews to fulfill

our purpose. We use questionnaire for users and non users of e-banking and

conducted interview of employees of banks.

Reason:

We have used questionnaire because

Questionnaires are preplanned (structured).

Provide accurate data.

Provide concise and appropriate information.

Good respondent cooperation.

Data analysis is easy.

Low item no response.

We have conducted interviews because

Interviews provide versatility of questioning.

Provide special features like visual material etc.

Degree of interviewer influence on answers is high.

Respondent cooperation is excellent.

Speed of data collection is good.

Item non response rate is low.

3) Planning a Sample:

We have selected a sample size of 100, In which 20 are

employees, 40 users and 40 non users. We have visited 10

banks in different areas of Multan.


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4) Data Collection:

The data we have collected has both qualitative and quantitativesignificance. Our questionnaire contained close ended questions mostly.

We have visited each bank and conducted interviews to get appropriate

information about the views and experiments of employees of banks

about low popularity of e-banking. They provided us with trend toward

e-banking in Multan. Questionnaires provided us very accurate and to the

point views of users and non users toward e-banking.

5) Data analysis and conclusion:

To analyze the data we have uses SPSS software, and have find the

conclusions carefully from that information.

6) Report preparation:

We have prepared report very carefully by using MS Word. We have

written each and evey thing without any ambiguity. Every point is mirror

clear.


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Introduction of Banks

Askari Bank

Askari Bank LimitedType Private

Founded October 09, 1991

Headquarters Rawalpindi, Pakistan

Key people

Lt. Gen. Waseem Ahmed Ashraf, Chairman

& CEO

M. R. Mehkari (Acting)

Industry Money Center BanksProducts Banking

Revenue Rs 5.453 billion PKR (2005)

Net income Rs 2.022 billion PKR (2005)Total assets Rs. 145.1 billion PKR (2005)

Employees 2,754 (2005)

Website www.askaribank.com.pk

Askari Bank Ltd (formerly Askari Commercial Bank) was incorporated in Pakistan on

October 9, 1991, as a Public Limited Company. It started its operations during April 1,

1992. The bank principally deals with mainly banking, as defined in the Banking

Companies Ordinance, 1962. The Bank is listed on the Karachi, Lahore & Islamabad

Stock Exchanges and its shares are currently the highest quoted from among the new

private sector banks in Pakistan.

Askari Bank has expanded into a nation wide presence of 136 branches, and an offshore

banking Unit in Bahrain. A shared network of over 1,100 online ATMs covering all major

cities in Pakistan supports the delivery channels for customer service. As on December

31, 2005, the bank had equity of PKR 8.6 billion and total assets of PKR 145.1 billion,

with over 600,000 banking customers, serviced by our 2,754 employees.


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Bank Alfalah

Bank Alfalah Limited

Type Private

Founded Karachi

Headquarters Principal Office, Karachi Pakistan

Key peopleH.E. Sheikh Hamdan Bin Mubarak Al

Nahayan (Chairman)

IndustryBanking

Capital Markets

ProductsLoans, Credit Cards, Savings, Consumer

Banking etc.Revenue PKR 25.783 Billion (2007)

Net income PKR 3.130 Billion (2007)Website www.bankalfalah.com

Bank Alfalah Limited is a private bank in Pakistan owned by the Abu Dhabi Group.

Bank Alfalah was incorporated on June 21, 1997 as a public limited company under the

Companies Ordinance 1984. Its banking operations commenced from November 1, 1997.

The bank is engaged in commercial banking and related services as defined in the

Banking companies ordinance, 1962.

History

Bank Alfalah Limited was launched on June 21, 1997 as a public limited company

under the Companies Ordinance 1984. The bank commenced its operations on November

1, 1997. The bank introduced commercial banking and related services as defined in the

Banking companies ordinance, 1962.

After a few years, the bank introduced its new identity of H.C.E.B after the privatization

in 1997. The management of the bank had implemented strategies and policies so the

bank would become a major player in the market. With a partnership with the Abu Dhabi

Group the position of the bank became stronger which allowed the bank to invest more in

revolutionary technology to increase its range of products and services.


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Mission statement:

To develop and deliver the most innovative products, manage customer experience,

deliever quality service that contribute to brand strength, develop a competitive

advantage and enhance profitabilty, thus providing value to the stakeholders of the bank.

Branches:

The bank is currently operating through 195 branches in 74 cities, with the

registered office at B.A.Building, I.I.Chundrigar, Karachi. Some of the main branches are

located in all of the major cities including: Lahore, Kasur, Islamabad, Gawadar,

Peshawar, Faisalabad, Quetta, D.I.Khan, Rawalpindi, Sargodha, Sukkur, Sialkot, Multan,

Murree, Attock District, Gujranwala etc. .

Habib Bank Ltd.

Habib

Bank

HBLType Public Limited Company

Founded Bombay (now Mumbai), in 1941.

Headquarters Habib Bank Plaza, Karachi,

IndustryBanking

Capital Markets


Banking etc.

Revenue PKR 50.481 bn (USD 814.2 mln) 2007Net income PKR 10.084 bn (USD 162.6 mln) - 2007

Website www.habibbankltd.com


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Limited (commonly referred to as "HBL") (Urdu: ), headquartered in Habib

Bank Plaza, Karachi, Sindh, is the largest bank in Pakistan. The bank has a network of

1425 branches in Pakistan and 55 branches worldwide. It has a domestic market share of

over 40%. It continues to dominate the commercial banking sector with a major market

share in inward foreign remittances (55%) and loans to small industries, traders andfarmers. Overseas, it has operations in the following countries:

Mission

To be recognized as the leading financial institution of Pakistan and a dynamic

international bank in the emerging markets, providing our customers with a premium set

of innovative products and services, and granting superior value to our stakeholders

shareholders, customers and employees.

History

The branches of Habib Bank in Pakistan

1941 Mohammed Ali Jinnah, Pakistan's founding father, realized the importance

of financial intermediation while he was campaigning for the creation of aseparate homeland for the Muslims of India. He persuaded the Habib family to

establish a commercial bank that could serve the Indian Muslim community. His

initiative resulted in the creation of Habib Bank, with HO in Bombay and fixed

capital of 25,000 rupees. The bank played an important role in mobilizing funds

from the Muslim community to finance the All-India Muslim League's campaign


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for the establishment of Pakistan. Habib Bank also played an important role in

channeling relief funds to the people hurt in the communal riots and violence that

preceded the departure of the British from India. Habib Bank Limited established

itself in Bombay (now Mumbai) in 1941. After Pakistan was born in 1947, Habib

Bank, at the urging of Governor-General Jinnah, moved its headquarters toKarachi, Pakistan's first capital. The Habib family owned and managed the bank

until the Pakistan government nationalized it on 01 January 1974.

Muslim Commercial Bank

MCB Bank Limited (Formerly Muslim

Commercial Bank)

Type Private

Founded Lahore

HeadquartersRegistered Office: Islamabad, Principal

Office: Lahore Pakistan

Key people Mian Mohammad Mansha (Chairman)

IndustryBanking

Capital Markets


Banking etc.

Revenue PKR 31.787 Billion (2007)Net income PKR 15.266 Billion (2007)

Website www.mcb.com.pk

Muslim Commercial BankLimited was incorporated by the Adamjee Group on

July 9, 1947 under the Indian Companies Act, VII of 1913 as a Limited Company. The

bank was established with a view to provide banking facilities to the business community

of the sub-continent. The bank was nationalized in 1974 during the government of

Zulfiqar Ali Bhutto. This was the first bank to privatized in 1991 and the bank was

purchased by a consortium of distinguished Pakistani corporate groups, led by Nishat


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Group. Currently the Nishat Group owns a majority stake in the bank. The president of

the bank is Mr. Atif Bajwa (previously with Citibank) and the Chairman is Mian

Mohammad Mansha.

.

National Bank of Pakistan

The National Bank of Pakistan has its headquarters in Karachi, Pakistan. It has over

1,200 branches throughout Pakistan. The bank provides both commercial and public

sector banking services. It has assets worth USD 12.293 billion in 2007. Its

subsidiaries include NBP Capital, NBP Modaraba Management Company, NBP

Exchange Company, Taurus Securities, NBP Almaty et al.

National Bank of Pakistan

Type

Private

KSE: NBP

LSE:

Founded KarachiHeadquarters Principal Office, Karachi Pakistan

Key people S Ali Raza (Chairman)

IndustryBanking

Capital Markets


Banking etc.

Revenue PKR 50.569 bn (USD 815.6 mln) 2007Net income PKR 19.034 bn (USD 307 mln) - 2007

Website www.nbp.com.pk


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Vision

To be recognised as a leader and a brand synonymous with trust, highest standards of

service quality,international best practices and social responsibility.

Mission

NBP will aspire to the values that make NBP truly the Nation's Bank by:

Institutionalising a merit and performance culture.

Creating a distinctive brand identity by providing the highest standards of services.

Adobting the best international nanagement practices.

Mazimizing stakeholders value.

Dischargeing our responsibility as a good corporate citizen of Pakistan and countries

where we operate.

Board of Directors

S Ali Raza - Chairman & President

Mian Kausar Hameed - Director

Mr. Ibrar A. Mumtaz - Director

Mr. Tariq Kirmani - Director

Sikandar Hayat Jamali - Director

Azam Faruque - Director Ekhlaq Ahmed - Secretary Board of Directors


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History

1949 National Bank of Pakistan (NBP) was established under the National Bank

of Pakistan Ordinance 1949 and was 100% govt.-owned. NBP acted as an agent

of the Central Bank wherever the State Bank did not have its own Branch..

Standard Chartered Pakistan

Type Private

Founded 2006

Headquarters

Principal Office

Karachi Pakistan

Key people Badar Qazmi CEO, SCBPL

IndustryBanking

Global Markets


Banking etc.

Revenue (PKR)

Website www.standardchartered.com/pk/

Standard Chartered Bank (Pakistan) Limited is Pakistan's oldest and largest foreign

bank with over 150 branches in the country. The history of Standard Chartered in

Pakistan dates back to 1863, when the Chartered Bank of India, Australia and China first

established its operations in Karachi.

In 2006 Standard Chartered Bank acquired Pakistan's Union Bank. On 30 December

2006, Standard Chartered merged Union Bank with its own subsidiary, Standard

Chartered Bank (Pakistan), to create Pakistan's sixth largest bank.


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Bank of Punjab

The Bank of Punjab is a bank based in Lahore, Pakistan serving the entire country.

History:

Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the

status of scheduled bank in 1994. It is not the same institution as the former Bank of

Punjab Ltd. in India, which merged with Centurion Bank to become Centurion Bank of

Punjab.

Type Public

Founded1989

Lahore, Pakistan

Headquarters Lahore, Pakistan

Key peopleShahzad Hassan Pervez, Chairman

Sajjad Hussain, President

Industry Banking, Finance and Insurance

Products Financial Services

Website


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Sir Mohammed Anwar Pervez OBE - Deputy Chairman

Mr. Atif R. Bokhari - President & CEO

Mr. Omar Ziad Jaafar Al Askari - Director

Mr. Zameer Mohammed Choudrey - Director

Mr. Ahmad Waqar - Director Dr. Ashfaque Hasan Khan - Director

Mr. Aqeel Ahmed Nasir - Company Secretary & Chief Legal

Mr. Abdul Rauf Malik - Director

Mr. Aameer Karachiwalla - SEVP/Group Chief Financial Officer

Mr. Ejazuddin - Group Exective/Audit & Inspection Group

Mr Salahudin Khan ( AVP )

brm report2

Documents

Transcript of brm report2