1. Cybersecurity for E-Banking and
E-Commerce in Pakistan:
Emerging Digital Challenges and
Opportunities
(Review of Chapter 9)
Submitted by: Nassmah Al-Matari
Submitted to: Dr. Nagi Ali Al-Shaibany
3. Introduction
• Cybersecurity breaches have opened new digital challenges and
threats for banks and their customers. Increases in cyberattacks is
creating an unsafe digital environment. Electronic payment systems
enable banks’ customers to transact via internet-supported websites
and banks of banks, known as electronic banking or net banking.
• E-Banking: It provides online access to banks if they have the means
for it. Moreover, it offers different services, such as money transfer,
bill payment, account verification, e-shopping, and recharges.
4. • The author further argues that Pakistan faces wide-ranging cyber
threats while it increasingly makes use of internet technologies but it
seriously lacks in cyber readiness.
• There exist many kinds of banks, viz., commercial, investment,
private, and public.
• Internet banking technology in the Asian region, especially in
Pakistan, is comparatively less developed than in the Western world
because of specific reasons.
• The banks were expected then to lead the way into e-commerce,
respectively. Most progress in the e-commerce sector has been in e-
government.
• E-Commerce: Ecommerce, also known as electronic commerce or
internet commerce, refers to the buying and selling of goods or
services using the internet, and the transfer of money and data to
execute these transactions.
5. • In Pakistan, Internet users are growing fast, and internet access expanded from 29 cities in August 2000 to
more than 6500 cities and towns by November 2018. Previously, optical fiber networks were only available
in major cities, but now the respective networking is expanding exponentially.
• Now, customers can access their accounts without being physically present at their banks. Banks are offering
more and more facilities to facilitate their customers with ease and convenience regarding e-banking.
However, in Pakistan, this is not the case. As people still refrain from using e-banking in Pakistan because of
various issues. The e-banking sector has exponentially grown in the last decade, and it has more chances of
growth as organizations like banks still encourage clients to carry out e-transactions, like utility bill
payments, access to account information, and money transfer.
• Most of the prior studies have frequently focused only on the positive aspects of e-banking, e.g.,
advantages, trustworthiness, and innovations. This research will help banks formulate appropriate strategies
to ensure customers’ rapid migration to online banking, thus booming this self-service technology more
efficiently and conveniently.
• The establishment of National Centre for Cyber Security (NCCS) has been commenced by Government of
Pakistan in June 2018 (NCCS 2018). The NCCS project is a joint initiative of Higher Education Commission
(HEC) and Planning Commission. The Centre constitutes Research and Development (R&D) Labs in reputed
universities of Pakistan which were shortlisted after the open call for proposals made by HEC in early 2018.
6. Problem Statement
• Pakistan has various barriers to e-commerce, such as relatively few
internet users, inadequate infrastructure (i.e., frequent power
failures, fewer phone lines), and lack of cybersecurity for online
transactions being hacked. The Government of Pakistan is rigorously
working on these areas to overcome respective problems and
progress in this sphere. This research focuses on the challenges for e-
banking and e-commerce in Pakistan and issues relating to
cybersecurity.
7. FOCUS OF THE RESEARCH
This research focuses on the advantages, disadvantages of e-banking,
an overview of Pakistan’s economy, internet usage, cybersecurity,
growth of e-commerce in Pakistan, and e-banking global usage in
Pakistan. In specific, it focuses on the prospects and barriers of e-
banking and e-commerce in Pakistan.
8. RESEARCH METHODOLOGY
• This research was formed by a systematic review method.
• In this method, the research objectives are determined, and an
extensive literature review is done on the subject.
• The research findings are classified according to the subject’s content.
9. GLOBAL CONTEXT OF E-BANKING
• a significant factor influencing the consumer use of internet banking
websites is the trust factor. The continuing instances of internet
banking security violations and reports dwindle customers’ trust in
banks, especially online banking. Thus, issues pertinent to the
adoption of internet banking must be factored in any plans to add to
the customer’s satisfaction and enhance the relevant security control
features.
10. ADVANTAGES AND DISADVANTAGES OF E-
BANKING
• Advantages of E-Banking :
• Easy to use
• Easy to open
• It saves time
• It saves details about transactions
• Very easy and efficient
• Integrated banking services
• It makes for simple account monitoring
• Security is assured
11. • Disadvantages of E-Banking
• Limited access
• Hard for beginners
• Banking information is not private
• An account may be hacked
• Server down
• Transaction Failure
• Notifications that bother
• A third party may access an account
• Constant updates and emails
13. INTERNET USAGE IN PAKISTAN
• The Islamic Republic of Pakistan is a sovereign state located in South
Asia. According to the Bureau of Statistics - 6th Population and
Housing Census, Pakistan’s population is 212,742,631. It is the fifth
most populous country and the second-most populous Muslim
country in the world after Indonesia. According to Internet World
Stats (IWS), in Pakistan, the total number of internet users in October
2018 was 44,608,065, 22.2% of the total population
14. GROWTH OF E-COMMERCE IN PAKISTAN
• According to Pakistan Telecommunication Authority (2018), the percentage
of broadband internet users in Pakistan as of October 2018 is around 30%.
It reveals the development in this sphere during the last decade. Many
banks and exchange companies now offer online funds transfers from
overseas, like workers remittances. A few banks offer mobile phone
banking, where customers can pay utility bills using their mobile phones.
• The Central Board of Revenue (CBR), the tax authority in Pakistan, started
allowing electronic filing of sales tax and federal excise returns by
registered private and public companies in December 2005. It was said that
it expected about 1,600 large taxpayers out of 22,000 to use the respective
facility. The Government’s efforts to promote the I.T. sector included
establishing the Information Technology and Telecommunications Division
in July 2000.
15. E-BANKING’S GLOBAL USAGE AND PAKISTAN
• Internet banking is becoming an increasingly important channel for
Pakistani banks to facilitate banking services to individual customers and
businesses. The banks offer internet banking in two ways; first, an existing
bank with its physical offices can establish a website and offer internet
banking to its customers and its traditional existing delivery channels. The
second alternative is to establish a virtual internet-only bank. The
computer server lies at the heart of an internet-only bank may be housed
in either an office that serves as the legal address or at some other
different location.
• The success of e-banking can be gauged by identifying the number of
currents and anticipated registered users worldwide
16. DIGITAL ENTERPRISE TRANSFORMATION
• “Ongoing digital transition through sectors became a given in 2019,”
Stephanie Overby (2020) said. Digital transition exhaustion became
possible at the same time.” Though Steve Hall (2020), President of ISG
(a significant technology consulting and research organization),
believes that “internet projects will continue to scale rapidly across
industries in 2020.” Chief information officers and companies have
prepared their businesses for transition in many ways, but they have
not gone all the way to changing their cultures to accept the change
truly.”
17. • Banks that use Digital Enterprise Transformation will be able to gain
significant comparative advantages:
• 1. It enables large-scale and rapid growth.
• 2. Organizational agility meets changing consumer demands.
• 3. The customer’s future requirements are met.
• Financial services companies benefit from Digital Enterprise
Transformation because it makes them more stable, compliant, and
digital. Employees, associates, clients, and stakeholders all have
different experiences.
18. SOLUTIONS AND RECOMMENDATIONS
• The E-banking system has been strengthened for years, with the
advancement of the internet and aid of modernization and technology
employed for data safety in cybersecurity. An increasing number of
developments are shifting to the digital world daily, indicating a shift in
mindset, industry prototypes, and cyber-security steps.
• Discussions regarding the future of commercial organizations help the
users to mull over various procedures, wherein they are changing.
Although contemporary technologies like internet banking, mobile
banking, and Bitcoin facilitating the banks are popular, the evolutionary
leap in the digital signature, encryption, Blockchain, data security, and
numerous security-linked aspects could also be correlated with them.
19. • Banks should educate their customers about all benefits of mobile
and e-banking and cybersecurity. Service charges of foreign banks
should be reduced to be enabled to utilize their services and remain
intact with these banks. More customized and featured mobile
banking services should be introduced. These services are not
sufficient, as mobile usage is on the rise, so this area needs a focus.
During power cuts and frequent electricity breakdowns, accessing the
internet becomes difficult; thus, mobile banking can help in this
phase.
20. CONCLUSION
• Internet banking is becoming an increasingly important channel for
Pakistani banks to facilitate banking services to individual customers and
businesses. The banks and post office departments in Pakistan are working
on multiple delivery channels to facilitate citizens’ delivery of payments in a
minimum time frame with security and reliability. Banks and post offices
across the country also facilitate workers’ remittance from overseas
Pakistanis within 24 hours and without charges.
• As an underdeveloped country, Pakistan has undoubtedly suffered from
decades of internal disputes, i.e., social and political nature, low foreign
investments, and a costly ongoing confrontation with its neighboring
countries. For a few years, IMF-approved government policies, generous
foreign assistance, and renewed access to the global markets have
generated reliable macroeconomic recovery in Pakistan
21. My Opinion
• Technology has undoubtedly made a significant change in
every aspect of life in Pakistan, whether it is a financial or non-
financial sphere. Banks in Pakistan are offering more and more
facilities to customers with ease and convenience regarding e-
banking. However, people in Pakistan still refrain from using it.
Pakistan has various barriers to e-banking and e-commerce,
like relatively few internet users, inadequate infrastructure, and
security for online transactions. The Government of Pakistan is
working on these areas to overcome respective issues. This
research………………….
22. • In the era of globalization Internet banking or online banking has
revolutionized an integral activity of our modern twenty first century.
The man developed various ways for communication to the exchange
of information, ideas and knowledge which is of great importance to
him as a social being. The evolution of e-banking technology makes
the task very easy, banking transactions becomes very fast within a
click. Online and mobile banking make daily banking fast and
convenient. The misuse of information technology in the cyber space
is clutching up which gave birth to cyber crimes at the national
and international level. The percentage of risks and the
challenges associated with it is increased. However online and mobile
banking is never 100 per cent safe.
