Open Access Article

Impact of E-Banking on Customer Welfare: Empirical Evidence from the Banks in South Punjab (Pakistan)

Authors

Uzma Hina(1) Uzma Hina Affiliation PhD Scholar, School of Economics, Bahauddin Zakariya University, Multan, Pakistan Other articles by this author , Muhammad Omer Chaudhary(2) Muhammad Omer Chaudhary Corresponding author Affiliation Professor of Economics, School of Economics, Bahauddin Zakariya University Multan, Pakistan Email addressomer@bzu.edu.pk Other articles by this author

  1. PhD Scholar, School of Economics, Bahauddin Zakariya University, Multan, Pakistan
  2. Professor of Economics, School of Economics, Bahauddin Zakariya University Multan, Pakistan

https://doi.org/10.36923/jcmi.v6i1.633

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Abstract

It is evident that internet banking (e-banking) revolutionizes financial management through convenience, speed, and accessibility, thus enhancing customer welfare by saving time, reducing costs, and increasing financial control. Hence, this study expands on existing literature by analyzing the impact of e-banking on customer welfare, particularly in banks of Southern Punjab, Pakistan.  This study uses Zenithal et al.'s (2005) e-SQ/e-SERVQUAL framework and IFC's (2013) MBQ model, treating customer welfare as an outcome of e-banking service quality. A descriptive-exploratory design was employed to analyze the cause-and-effect relationship between e-banking services and customer welfare. A Logit Model was developed based on data collected from 1029 customers of real-time online branches (RTOB) located in Southern Punjab, Pakistan, to estimate the econometric properties for determining the relationship between e-banking and customer welfare. Findings reveal that E-banking explains 68.59% of welfare variance (R²=0.6859, Adj. R²=0.6825). The Logit model is significant (F=206.33, p=0.000), with education (β=0.009, p=0.012), e-compensation, efficiency, responsiveness, and website layout (all p=0.000) as positive predictors. Gender, location, age, marital status, and income showed no significant impact (p>0.05). The study highlights that Pakistan's banking sector, particularly in Southern Punjab, must improve digital literacy, banking services, and rural infrastructure to enhance e-banking adoption and financial inclusion and contribute more to customer welfare.

Article information

Keywords
E-bankingCustomer WelfareLogit ModelSouth PunjabPakistan
Section
Articles
Issue
Vol. 6 No. 1 (2025)
Submitted
April 2, 2025
Accepted
June 9, 2025
Published
June 30, 2025
Corresponding author
Muhammad Omer Chaudhary
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