Determinants of SMEs' perceptions of electronic banking in Pakistan

This study aims to collect the perceptions of Small- and Medium-sized Enterprise (SME) owners/executives/managers on the potential benefits and risks associated with Electronic Banking (EB) in Pakistan. The SMEs were selected from the yellow pages and every hundredth company was targeted randomly. Data were collected through primary sources and examined via frequency analysis and mean score analysis. The results indicate that the SMEs perceive EB as a tool to save time, facilitate quick responses and minimise the risk of carrying cash. The firms' most desired EB facilities are the payment of utility bills, submission of complaints and downloading of daily account reports. The SMEs also consider that EB increases the chances of government access to public data, fraud and data losses. The outcomes help bankers understand the concerns and demands of SMEs which not only represent a viable market segment in terms of the number and value of accounts, but also provide a considerable amount of retail profits.