Banking Sector Of Pakistan Research Articles

Huawei Pakistan Providing Cloud Solutions for Banking Industry: A Data Driven Study

This report explores how Huawei Pakistan's cloud solutions have revolutionized the country's banking industry. Using a combination of surveys and interviews, the study uses a mixed-methods approach to thoroughly evaluate the many effects of cloud adoption. The results are solid and highlight the significant advantages that cloud technology have provided to Pakistani banks. One major gainer is operational efficiency, with banks reporting notable increases in cost savings, process simplification, and overall operational efficiency. These results support the focus on cloud solutions' transformative potential found in the research currently in publication. Adoption of cloud computing has an equally significant impact on customer experience and satisfaction, with increased customer satisfaction levels, response times, and service innovation resulting from its use. The research findings are consistent with the literature's claim that cloud computing enables banks to offer improved customer experiences in a time when customers expect quick and easy access to services. Most importantly, the study emphasizes how crucial it is to comply with regulations and maintain data security while adopting cloud computing. After using Huawei's cloud solutions, banks in Pakistan reported a considerable improvement in data security, privacy safeguards, and regulatory compliance. In the modern banking context, the benefits of strategically using technology to pursue excellence are visible in operational efficiency, customer satisfaction, data security, and regulatory compliance. These effects are truly revolutionary. Because of the cloud's revolutionary ability, Pakistan's banking sector is well-positioned to thrive as the digital era unfolds. Currently Pakistan SBP have released the cloud adoption frame, suggest and guide how financial institution adopt cloud, and new digital banks also requiring cloud environment to support business raise rapidly. However, the cloud on the market or have less function, or have data sovereign risk. Huawei product HCS is the kind of cloud infrastructure can both provide plenty cloud services and protect data security.

Impact of perceived CSR practices on customers loyalty. The mediating role of reputation and customer satisfaction

AbstractCustomers' loyalty is considered as an important factor ensuring overall organizational success in the long run. The purpose of this investigation is to determine how customer loyalty in Pakistan's banking sector affected by perceived corporate social responsibility (CSR) practice. To end this, the present study collected data from 378 respondents using convenience sampling technique. To test proposed hypothesis, the study used correlation analysis, regression analysis, and Baron and Kenny method used to test mediation effect of variables together with the Sobel test. The result of the study shows a significant positive association among perceived CSR, bank reputation and customers loyalty and customer satisfaction. This study further shows that bank reputation has a mediating effect between perceived CSR and customer loyalty, but the relationship between CSR practices and customer loyalty has a negative effect on customer satisfaction. It was found that there was no mediating effect of degree. The findings highlight the importance of allocating resources to CSR initiatives and reputation management as a means of increasing customer loyalty. The results provide an important academic addition to the current body of research on the impact of CSR on the development of customer loyalty, with a particular focus on the Pakistani banking industry.

Effect of Digital HRM on Employee Performance: The Role of Employee Trust and Organizational identity in the Banking Sector of Pakistan

Motivation is key for perseverance at work. At the point when they are characteristically persuaded, individuals experience work exercises as an end in itself, to such an extent that the movement and its objective impact. The outcome is expanded interest and satisfaction in work exercises. This examination was directed to test the speculation proposed by utilizing quantitative strategies. This kind of examination is research with a quantitative methodology and the idea of the research. The populace is a gathering or gathering of examination objects from which information will be gathered. The entire entirety of the article concentrates on whose attributes are thought or assessed. The examination configuration utilized study research that took an example from one populace and involved a survey as the primary information assortment instrument. This permits us to recognize the benefits and inconveniences of strategies and display the ebb and flow standpoints of examination. Our examination proposes that curiosity and shock can help the structure of a pecking order of adaptable abilities which abstracts elements and makes the investigation cycle more vigorous.

Does a High-Performance Human Resource Practice Stimulate Employee Creativity: A Moderated Mediation Model

This study explores entrepreneurial leadership as a moderator between employee work engagement and perceptions of high-performance human resource management (HRM) practices. Additionally, it delves into the mediating role of employee work engagement between employee creativity and these perceptions. Utilizing a quantitative research strategy, the study includes a sample of 396 members from the banking sector in Pakistan. The study employs PLS-SEM to test hypotheses. Findings indicate that employee work engagement serves as a mediator between employees’ perceptions of high-performance HRM practices and creativity, while entrepreneurial leadership moderates this association. Entrepreneurial leadership enhances the employee–organization relationship and strengthens the impact of high-performance HRM practices on positive work-related behaviours. The study contributes to the body of knowledge by examining the strong role of employee work engagement in the relationship between employee perceptions of high-performance HRM practices and creativity as mediator, as well as the significance of entrepreneurial leadership as a moderator in that relationship to optimize the working of organization stimulating through the demand resource theory.

Impact of fintech on the Pakistani banking sector

In the early stages, Fintech was introduced in the banking sector in Pakistan, and it enhanced banking activities from traditional to digital. Fintech is the fusion of two terminologies, Finance and Technology. It includes the use of technological advancement to deliver financial products and services to people. This research aims to investigate and analyze the impact of Fintech adoption on the competitiveness and performance of the Pakistani banking sector. The research is based on quantitative methods and analyzed using SPSS software; we used the convenience sampling method to collect responses from 90 participants. This study uses a regression analysis model as a benchmark to analyze the data received from the questionnaire. The results suggest that Fintech adoption had a significant positive impact on the competitiveness and performance of the Pakistani banking sector. Adopting Fintech properly and lining up with technology can also improve the performance of a bank. This study allows for a more in-depth understanding of the impact of FinTech on banks.

Augmented reality is the new digital banking – AR brand experience impact on brand loyalty

PurposeConsumers are increasingly embracing innovative technologies for enhanced experiences. This study delves into the banking consumer brand experience through the lens of augmented reality (AR). The focus is on mobile augmented reality applications within financial institutions, which contribute to a more enjoyable and immersive customer experience. Specifically, the research highlights the utilisation of mobile augmented reality applications by a Pakistani bank and examines its influence on consumer loyalty and sustained engagement, with a particular emphasis on the AR brand experience.Design/methodology/approachThe authors conducted a comparative study between married and unmarried consumers with sample sizes of 178 and 172, respectively. The results were analysed through structural equation modelling using SmartPLS.FindingsThe study's outcomes show that AR brand experience for the unmarried sample category is positive and higher than a married one. This is an excellent opportunity for the banking sector in Pakistan to invest more in innovative technologies.Originality/valueThe current study investigates the brand experience in the banking sector from the perspective of AR technology which contributes to the AR literature.

Credit Risk Management and Mortgage Performance in the Islamic Banking Sector in Pakistan

Credit Risk Management and Mortgage Performance in the Islamic Banking Sector in Pakistan

Unlocking Employee Silence through Leader Machiavellianism: The Moderated Mediated Assessment

Grounded on the social exchange theory, this study investigates the link between leader Machiavellianism and employee silence behavior by considering the employee's relational identification as a mediator and Perception of Politics as a moderator. Sampling Data was collected from Middle-tier employees of the banking sector in Pakistan through a convenient sampling technique. A sample of 315 bank officers is being selected. For testing the model, SPSS & AMOS has been used for data analysis. Preacher and Hayes methods were used for mediation analysis. The findings of this study demonstrated that leader Machiavellianism does not directly affect employee silence; rather, a strong positive link between leader Machiavellianism and employee silence has been identified through mediation. Relational Identification had an important mediating effect on leader Machiavellianism and employee silence. Furthermore, the perception of politics was discovered to be significant as a moderator, strengthening the unfavorable association between leader machiavellianism and relational identity. According to the conclusions of this study, banking officers should be more sensitive while interacting with their employees since it would build a happy work atmosphere with stronger interpersonal interactions, hence minimizing workplace silence. As a result, the banking sector must implement effective strategies to help bank managers deal with the Perception of Politics among workers at work.

FinTech and Pakistan’s Banking Industry: An Exploratory Study

Technological development in the financial sector has influenced different segments of consumers differently. In the last decade, like other industries, driven by technological adaptation, the banking industry has also undergone regulatory changes and has, therefore, influenced how consumers interact with traditional financial services. FinTech has contributed to some of this transformation. Numerous new startups are already transforming the financial technology sector by creating cutting-edge financial services and products for consumers. This study provides a better understanding of the current position and FinTech implementation strategy in Pakistan's commercial banking sector. It also investigates the barriers to adopting Fintech and its impact on the banking sector. Twelve in-depth interviews were conducted with the assistant manager, operations manager, and bank branch manager as part of the qualitative study. These interviews provided insights into the current situation of the banking industry to Fintech. The factors reported in this study are Challenges and Barriers to the adoption of Fintech. Factors are Lack of Budget, Lack of Rules and Regulations, Cybercrimes, and Hacking. Requirements for the adoption of Fintech factors are E-commerce activities, SBP Role, Training, and Advanced ICT Infrastructure. The impact of Fintech on Pakistan's banking sector is efficiency, innovation, competitiveness, and customer service. The study contributes to the knowledge of practice-related stakeholders, offering valuable insights into Fintech and its effects on the banking industry in Pakistan. The study thus offers valuable insights for policy managers who are engaged with promoting Fintech in Pakistan's banking sector to offer better services to customers and upgrade industry practices.

Adapting Corporate Governance for Sustainable Organizational Performance: A Case Study of the Banking Sector in Pakistan amid the COVID-19 Pandemic

Purpose - Corporate governance is a crucial aspect of creating a corporate culture that emphasizes transparency, fairness, and openness. The COVID-19 pandemic has caused a global financial crisis, which has increased attention to corporate governance issues. In light of this, the objective of this study is to examine the impact of corporate governance on the sustainable organizational performance of the banking sector in Pakistan particularly in the context of COVID-19.
 Study Design/Methodology/Approach - This research analyses the annual reports of sample banks and uses secondary data from 2016 to 2022; therefore, there is no doubt about the reliability and validity of the data. This study measured firm sustainable financial performance based on accounting data, using return on assets, return on equity, and earnings per share. The suggested model was investigated by the generalized method of moments through the Arellano-Bond Dynamic Panel-Data estimator.
 Findings - The overall findings of the study reveal that corporate governance components such as board size, audit committee independence, number of board meetings, and chief executive officer duality have a significant impact on organizational performance. Furthermore, the Fixed Affect model indicates that CEO duality has no discernible effect on organizational sustainable performance, while board size, audit committee independence, and the frequency of board meetings all positively affect it.
 Practical and theoretical implications- This study has implications for all stakeholders of the banking system, economic policymakers, and academicians by highlighting the importance of components of corporate governance that enhance overall organizational performance. Theoretically, compliance with corporate governance regulations should lower agency costs, which will improve the overall business's performance now and in the future.
 Originality/Novelty- This study indicates that the use of corporate governance practices enhances and improves the overall sustainable performance of the banking sector. This study adds value to the existing body of literature by considering corporate governance and its association with organizational performance, particularly from the COVID-19 perspective.

Impact of Work Life Balance on Organizational Commitment: Exploring the Role of Generation Differences and Supervisor Support

Academicians and Practitioners are giving lots of attention to the implications of work life balance and organizational commitment. Different studies suggest that there is a need to decide the mediating relationship of supervisor support within the framework that has been carried out in this study. Likewise, earlier literature suggests that there is need to investigate the effect of generation diversity should be studied on relationship of work life balance and organization commitment that has also been done in this study. The purpose of this study is to decide the influence of work life balance on organizational commitment through mediating effect of Supervisor Support. This study decides the feeling of different generations about Work life balance, Supervisor Support and Organizational Commitment. The study analyzes 360 employees of banking sector in Pakistan using Stratified random Sampling. In terms of implication this study helps in deciding the need to manage different generations and supervisor support to increase commitment level with their organization. This Study has been done in different banks, including United Bank of Limited, Zarai Taraqiati bank of limited, Faisal bank, National bank of Pakistan and Bank of Punjab there could be study done in some other banks and this study could be done in other sectors like education, medical sector. This study could be longitudinal for deciding all aspects, works and values of different generations within the context of Pakistan.

Effect of Transformational Leadership on Firm Performance: Mediating Role of Employee Self-Efficacy and Work Engagement

This study aims to analyze the impact of transformational leadership on the performance of private banks located in Hyderabad, Pakistan. Additionally, it examines how employee self-efficacy and work engagement act as mediators in this relationship. Through non-probability convenience sampling, 156 participants from private banks were selected and data was collected using a Likert scale questionnaire. Structural equation modeling (SEM) was used for data analysis through Smart PLS software. By exploring the effects of transformational leadership on firm performance and the mediating roles of employee self-efficacy and work engagement, this study contributes new insights to the existing literature on leadership and firm performance. The findings have practical implications for managers and leaders in the private banking sector in Pakistan, highlighting the importance of transformational leadership in enhancing firm performance. Notably, they underscore the indispensable role of transformational leadership in fostering organizational success and offer actionable insights to enhance performance within this context. Furthermore, this study contributes to a deeper understanding of the intricate interplay between leadership styles, employee attitudes, and organizational outcomes, thus paving the way for future research avenues in this domain.

Crafting the Customer’ Positive Affect Experience and Loyalty towards the Omni-channel Banking Sector in Pakistan: A Two-staged Classical-SEM and Artificial Neural Network (ANN) Approach

The primary purpose of this study was to examine the six aspects (transaction information, information access, promotion, product and price, order fulfilment, and customer service) of Omnichannel marketing strategies on the customer's positive affect experience and additionally study the impact of the positive affect experience on the customer loyalty. To achieve this purpose, we applied the online survey-questionnaire data collection technique while using the non-probabilistic convenience sampling technique to collect 453 data from the customers of those banks in Pakistan that implemented the Omnichannel strategies in their business operations. The Covariance-Based Structural Equations Model (CBSEM) results show that all the Omnichannel strategies significantly and positively impact customer positive affect experience except the integrated promotion while customer positive affect experience also positively impact customer loyalty. The results of this study's Artificial Neural Network (ANN) show that integrated customer service and product and price were the most important predictors of the positive customer experience in the Omnichannel banking sector in Pakistan. These outcomes of this study also provide various theoretical and managerial implications in the existing literature on the Omnichannel.

Effect of Human Resource Management Practices and Corporate Social Responsibility Disclosure on Employee Outcomes: Examining the Moderating Role of Trust in Management

This paper has examined the relationship among HRM practices, CSR disclosure and employee outcomes. This study contributes to previous literature by examining the moderating impact of trust in management among HRM practices_ employee outcomes, and CSR disclosure_employee outcomes relationships. Based on theory of Social information processing (SIP) trust in management was taken as moderator among HRM practices and employee outcomes. While, on the basis of Social exchange theory (SET) trust in management was taken as moderator among CSR disclosure and employee outcomes. This study sample consist of 250 managerial employees from banking sector of Pakistan. Primary data was collected through physical distribution of structured questionnaires and analysed using various statistical tools like, correlation and regression analysis with the help of SPSS software. Results showed affirmative link among HRM practices, CSR disclosure and employee outcomes. Moderation of trust in management among above relations is also confirmed.

Higher Interest Rate & Credit Risk Management: Insights for Pakistan's Banking Sector from Us Silicon Valley Bank

This paper examines the latest interest rate trends and credit risk management for the performance of Pakistan’s banking industry and drawing lessons from the default of Silicon Valley Bank. In the ever-evolving landscape of the banking industry, the delicate balance between interest rates and credit risk management emerges as a pivotal force shaping the sector's performance. This research provides a roadmap for financial institutions to harness the moderating influence of interest rates on credit risk, ultimately enhancing performance and resilience. Pakistan's banking industry must learn from the experiences and apply them to their own risk management practices. The study emphasizes the need for enhanced risk assessment frameworks, including thorough borrower evaluation, stress testing, and scenario analysis. It was conducted by well-structured questionnaire from a sample of 230 seasoned, experienced employees of top ten banks of Pakistan. The results of multiple regression showed that three variables: Credit Risk Management (CRM hereafter), Bank Performance and Interest rate are interconnected, statistically significant, affect each other and interest rate contribute in performance and strengthen CRM techniques. The study is quite useful for understanding and comprehending the changes in Pakistan’s banking industry over the past and in the latest scenarios of higher interest rates. Future contribution will be that this research will supply the foundation for other researchers who wish to dig into monetary policies and related disciplines.

Nexus of liquidity creation, profitability and bank stability with the moderating role of corruption: an empirical analysis

Purpose This study aims to investigate the impact of liquidity creation (LC) on the profitability and stability of banks while considering the moderating role of corruption. Design/methodology/approach Panel data from 23 conventional banks and five Islamic banks in Pakistan spanning from 2008 to 2021 were used for analysis. The study used fixed effect and random effect models, along with the generalized method of moments estimation to ensure robustness of the results. Findings The study reveals a negative relationship between LC and banking profitability, but a positive association with banking stability. Additionally, corruption is found to play a moderating role in the relationship between LC, profitability and stability in the banking sector of Pakistan. Research limitations/implications The findings have practical implications for bank managers and investors, emphasizing the negative relationship between LC and profitability in Pakistan. Moreover, the study highlights the significant impact of corruption on bank performance, which can guide policymakers in formulating strategies to strengthen the banking sector and prevent financial turmoil in the future. Originality/value This study makes a significant contribution to the existing literature by examining the moderating role of corruption in the relationship between LC, profitability and stability in both conventional and Islamic banks.

Impact of Workplace Bullying on Employee Intentions to Leave and Mediating Role of Employee Engagement: Banking Sector of Pakistan

Employee intentions to leave may entail expensive consequences for the organization. This study examined the mediating impact of employee engagement on the relationship between workplace bullying and employee intentions to leave. This study adopts a quantitative approach to find the relationship between variables. The data was collected from the banking sector of Pakistan through a random sampling technique using a self-administered questionnaire where 350 was the sample. Structural equation modeling (SEM) analysis showed that employee engagement substantially mediates the relationship between workplace bullying and the intention to leave the organization. However, workplace bullying and the intention to leave the organization are positively associated. The results were integrated from a conservation of resources perspective and recommendations for practice were made.

Association Between Emotional Intelligence and Turnover Intention: Its Effects on Job Performance in the Banking Sector

Studies in the banking sector in Pakistan showed that emotional intelligence (EI) and retention of employees had been found to be essential components in the job performance. Hence, this study tries to assess the relationship between emotional intelligence and job performance and turnover intention in the Pakistani banking industry. By examining how emotional intelligence might help with employee retention and performance, it aims to address the problem of high turnover rates. A total of 190 questionnaires were distributed to employees in various banks in Peshawar and Lahore, of which 169 questionnaires were collected back with a return rate of 89. Using AMOS version 26, the model was tested using a two-stage SEM methodology; first, the measurement model was used to assess the validity and reliability of the instrument, and then the structural model was estimated. The findings revealed that there was a positive and significant connection between EI and job performance, the relationship of turnover intention was found to be negative and significantly linked to EI. The results further show a positive but insignificant relationship between turnover intention and job performance. The results imply the prioritization of EI development among bank employees. This can be achieved through training and development programs that focus on improving emotional awareness, emotional regulation, empathy, and social skills.

Microfinance Institutions as Catalysts for Sustainable Entrepreneurship: Examining the Role of Social Capital and Training in Achieving SDG-aligned Success of Entrepreneurs

The issue addressed in this study holds importance as it explores the significant role of microfinance institutions in fostering entrepreneurial success through the provision of non-financial services. Employing a quantitative research design, the study examines the impact of these factors on the success of entrepreneurs within the microfinance sector in Pakistan. The collected data analyze through statistical softwares, such as SPSS and PLS-SEM. The findings reveal a positive and significant impact of social capital on the success of entrepreneurs, indicating that entrepreneurs with strong social networks, access to resources, and positive reputation are more likely to succeed. Similarly, training and development are found to have a positive and significant influence on entrepreneurial success, highlighting the importance of continuous learning and skill development for entrepreneurs. The study also identifies a moderating effect of entrepreneurial experience, suggesting that the positive impact of training and development is stronger for individuals with higher levels of experience. These findings emphasize the importance of financial inclusion and its potential to drive economic growth and reduce inequalities in Pakistan. Despite limitations in sample size and context, this study provides valuable insights for future research and the development of effective strategies to support entrepreneurial growth and development in the microfinance sector.

Cash Management: A Key Driver of Performance for Conventional Banks in Pakistan

This research examines the critical influence of cash management on the financial efficacy of the conventional banking sector in Pakistan. This study represents the initial attempt to assess the influence of liquidity, debt ratio, and bank size on return on assets among five conventional banks in Pakistan. Information was obtained from audited annual reports from publicly traded banks that span from 2017 to 2021. The results indicate a significant positive correlation between liquidity and return on assets (ROA). Additionally, a significant negative association between debt ratio and ROA is examined. Furthermore, the study reveals that the size of banks exhibits a significant negative relationship with ROA. The study will provide valuable insights for financial managers, portfolio analysts, treasurers, and controllers on the practical implementation of contemporary cash management strategies.