Influence of Digital Bank Services on the Financial Performance of the Commercial Banks
DOI:
https://doi.org/10.47067/ramss.v7i1.362Keywords:
Digital Banking, Performance, Commercial Banks, PakistanAbstract
It is anticipated that the adoption of digitalization in Pakistan's banking industry will have an impact on how banks formulate financial services and products as well as how well these banks operate. This paper attempted to analyse the impact of the digital banking on Pakistani commercial banks' financial performance in order to achieve this goal. Quantitative research approach was utilized. Commercial banks were the target population of this research. There were 200 responders from Pakistani commercial banks in the sample. The study employed multiple regression analysis to examine how digital banking affects financial performance. According to this research, Pakistan's commercial banks' growing profitability was mostly because of an increase in digital customer deposits made through digital banking platforms. The research findings indicate that there was an rising trend in the ratio of digital bank transactions to total assets over the chosen study period. The overall percentage of assets while growing due to a further increase in information technology expenses, fees, and commissions. The research findings indicated that an increase in online banking transactions was favourably and strongly correlated with profitability. To boost digital banking and boost commercial banks' financial performance, the report advises bank management to improve it.
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