Swot e Banking

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 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 b ase 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

Titles you can't find anywhere else

Try Scribd FREE for 30 days to access over 125 million titles without ads or interruptions! Start Free Trial Cancel Anytime.





STRENGTHS

WEAKNESSES

1. Uniq Unique ue Web Web Loc Locat atio ion n

1. Cost Costly ly to to devel develop op and and upgra upgrade de

2. Chea Cheap p tha than n tra tradi diti tiona onall

2. Operat Operation ional al risk risk due due to weakn weakness esses es in in

3. Very Very wide wide area area cover coverage age

system designing

4. Less Less time time limi limits ts

3. Non-en Non-enfor forcea ceabil bility ity of contrac contracts ts

5. Pers Person onal aliz ized ed serv servic ices es

4. Inac Inaccur curat atee pro proce cess ssin ing g

6. Reduced Reduced custom customer er servic servicee cost cost

5. Sometimes

7. Integ ntegra ratted cus custome tomerr bas base and and 360 360 degree customer view

compromise

on

data

quality especially of qualitative data 6. Reputational

risk

du e

to

8. Fast Fast transa transacti ction on proces processin sing g

nonfun non functi ctioni oning ng or poor functi functioni oning ng

9. Easy Easy to mana manage ge by banks banks

than competitors

10. Multifunct Multifunctional ional for banks banks 11. Strong and better better B2B relationshi relationships ps

7. Techn echniical cal staf stafff need needed ed to trou troubl bles es shoot hoot prob probllems ems and and

to

maint aintai ain n

effectively 8. Chances

of

unauthorized

data

alteration 9. More ore

orga organi niza zattional onal

comm commit itme ment nt

needed

OPPORUNITIES 1. 85% population below 30 years,

THREATS 1. Securi Security ty risk riskss of hackin hacking g syste systems ms

which are tech-savvy improving the

2. Risk Risk of fraud fraud and cyber cyber crim crimes es

popul populati ation on demand demand potent potential ial for e-

3. Legal gal risks due due to uncertainty nty of

banking 2. Econ Econom omic ic grow growth th in south south asia asia and and Pakistan also 3. Contin Continual ual stres stresss on intern internati ational onal trad tradee and easy cross border electronic funds transfer due to globalization

info inform rmat atio ion n

and and

litt little le

know knowle ledge dge

about law dealing electronic media 4. More cross bord order risk of illegal gal mone moneta tary ry acti activi viti ties es due due to wide wider r coverage 5. Gi t

ltin ltinat atio io ls





6. Deve Develo lopm pmen entt of niche niche mark market etss like like chea cheape perr

bank bank

ATM ATMs,

soft softwa ware ress,

hardwares, etc. 7. Outsourcing

6. Comp Compet etit itor orss can easil easily y copy as most most of

web

services

can

easily

be

accessed and copied of

jobs

in

west

7. Needs a higher literacy rate in

demanding demanding electronic electronic funds transfer transfer

community of customers not present

and e-banking on internet

in Paki Pakist stan an,, so compl complic icat atio ions ns may may

8. Wire Wirele less ss tech technol nologi ogical cal adva advance nceme ment nt and future scope 9. Mobile

phones

8. Contin Continual ual need of up gradat gradation ion rapid

stim stimul ulat ator or for for larg largee mobile banking

arise

sale,

a

scal scalee futu future re

9. Season Season/we /weath ather er can can also also influ influence ence the the electronic

ban banking, ng,

like

twice

disc discon onnec necti tion on of Inte Intern rnat atio ional nal sea sea fiber optic cable in Karachi last year

PEST Analysis of E-Banking in Pakistan





1. Home Legislation- less today but

1. Home economy condition-very

chances of big legislation in near

fine macroeconomic indicator with

future.

liquidity in market for transactions

2. Regional Legislation- quick in

2. Home economy trends- still in

SAARC, creation of single currency

recovery phase but fastly moving to

and SAFTA in progress, favorable for

stability but with high inflation

e-banking 3. International International Legislation- very rapid 4. Regulatory bodies- Present, SBP is

3. Overseas economic conditionchina, Fareast, and southeast becoming focus by everyday 4. Taxation on e-banking- still

playing a major role and providing

present and much than western

guidelines for implementing e-banking

countries but chances are that it will

over a huge scale.

reduce within next years gradually

5. Government policies- very

5. Market and trade cycle-

favorable especially in Punjab. Overall,

economy in recovery phase and

government is shifting to e-governance

slowly shifting to boom, but still

based upon electronic funds transfer

poverty an inflation are major hazard

and credit availability.

to purchasing power of middle class,

6. Government Term and chance

to change- no chances of turning the e-banking initiatives and almost no

vital for e-banking growth and penetration 6. Distribution trends- ATMs

chance of shifting government policies

outlets working today, mobiles are

in next 3 years

also spreading with GPRS services,

7. Pressure Pressure groups local and

foreign- supporting funding under strong check to avoid money laundering and terrorism in region, thus

so distribution is little problem as credit cards and ATM card machines are also available at shopping lots 7. Market routes- first Karachi,





8. Trading policies- supportive to exports and international trade thus favoring this e-banking also. 9. Funding and grants available -

Punjab, Lahore, Karachi only and then extending to all country 8. Customer base- very divers and large about 10 million potential

banks are today investing heavily to

customers are expected in country’s

meet the increased competition in this

above proposed regions

fields and funding is also available

9. Specific economy indicators-

from public sector to some extent.

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%

Social 1. Lifestyle trends- supportive to high

Technological 1. Competing technology

lifestyle recommended in millennium

development- today it appears that

goals of UN, Pakistanis lifestyle will

there is no competitors technology to

favor e-banking especially in Lahore

e-banking and perhaps it would alone

and Karachi

rule all credit markets in next decade

2. Demographics - about 80%

2. Research funding- demands

population is below 30 years, tech

continuous research funds as

savvy and can adapt to this trend

competitors can develop a

rapidly after continual marketing

competitive advantage using better

campaigns for some time

technological blend whose chance

3. Cons Consum umer er atti attitu tude dess 4. Media support- fine and e-banking

and scope present today 3. Dependent technologies-

should be marketed with proper support

software industry, wireless internet ,

of film and TV especially

ATM hardware, call center industry,

5. Image in society- positive and

etc all are at boom today and have





6. Religious factor- not hindering today much 7. Advertising and awareness- poor today and demands that effective credit cards, ATM marketing in youth and

technologies/solutions- today almost no potential replacement technology is present which can become a major threat 5. Maturity of technology-

middle aged people should be started

expected that within 3-5 years e-

with special packages for these

banking will become full mature in

segments of market

Pakistan’s different regions

8. Fashion trends- although e-banking

6. Manufacturing Manufacturing capacity-

is itself a fashion trend but it should be

Pakistan cannot develop today most

capitalized much more

of technology and related equipment

9. Major events- the biggest potential still unveiled in events in Pakistan like

so imports are inevitable 7. Information and

eids and Ramadan when huge liquidity

communications factors- very

is in market, and electronic banking can

beneficial to banks and customers

solve many liquidity problems at those

both strengthening their ties, also

times.

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







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.

Swot e Banking

Recommend Documents