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Title Financial Digitalization and Banking Performance: A Comparative study of Public and Private Banks in Pakistan

Author(s) Samand Khan

Abstract The integration of information technologies has given rise to the concept of the digital economy, characterized by the utilization of cutting-edge innovations. This digital transformation is pervasive across every economic sector, with the banking sector being a prominent player. In contemporary times, banking stands as one of the most crucial sectors actively incorporating and leveraging the latest advancements in information and communication technologies. Despite the growing significance of digitalization, there is a notable lack of comprehensive understanding regarding the factors influencing the performance of digital banks. The study aims to address this gap by exploring the determinants of financial digitalization and the performance of banks, shedding light on the intricacies of their operational success in the digital era. The study endeavors to assess the impact of financial digitization on the performance of the Pakistani banking sector. Utilizing a ten-year dataset spanning from 2013 to 2022, encompassing ten banks, the study employs panel data regression with a cross-section effects model. The analysis tool employed is E-views. The findings of this study reveal a positive correlation between the application of banking digitalization, in the form of adopting digital technology within banks, and the overall performance of banks. The measured performance indicators include Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). These results underscore the positive influence of digital technology on enhancing the financial performance of Pakistani banks. Serving as factual information, this study provides a foundational basis for decision-making regarding the implementation of digital technology in both the Private and Public sectors of banks.

Type Thesis/Dissertation MS

Faculty Management Sciences

Department Management Sciences

Language English

Publication Date 2024-06-28

Subject Finance

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