Impact of Cyber Security Measures in the Digital Banking Sector of Pakistan

Abstract

The research aimed to investigate the traceability, vulnerability, and quality of the security risk framework, as well as the implementation and monitoring of security controls within a banking system. This inquiry sought to assess their impact on the performance of digital banking services offered by banking firms in the Pakistani banking industry. Employing a quantitative research approach, the study utilized primary data for analysis. The explanatory research procedure was chosen, focusing on mobile banking users with over one year of experience in electronic banking and a literacy level equal to or above matriculation. Convenience sampling was employed with a sample size of 138 participants. Data was collected through a questionnaire and analyzed using structural equation modeling with PLS smart software. The study revealed that the implementation of security controls had an insignificant impact on digital banking services performance (p-value = 0.228, > 0.05, rejecting H1). However, monitoring of security controls (p-value = 0.002, < 0.05, accepting H2), traceability (p-value = 0.019, < 0.05, accepting H4), and vulnerability (p-value = 0.011, < 0.05, accepting H5) significantly influenced digital banking services performance. All accepted hypotheses exhibited positive coefficients, indicating a constructive influence on the determination of digital banking services performance.