Erosion of Trust in E-Banking: Analyzing the Consequences of Data Breaches and Fraud on Customer Confidence and Usage in Pakistan

Abstract

E-banking which greets us with the option of easy access to the services and convenience has been driving out the whole e-finance sector in Pakistan and it continues to grow. Thus, the change itself has caused some cyber security problems which can be a reason for slowing the rate of consumer trust in both products and services. Moreover, some data leakages and fraud issues may come up. This research in particular focuses on the multifaceted traits of e-banking security and customer opinion in Pakistan which serves to conclude the problematic area of digital financial system. This research substantializes the current and future trends by an exhaustive examination of the survey results, consisting of viewpoints on security measures, personal experience with safety incidents and their attitudes to regulatory mechanisms. Risk, fraud, and their influence on trust are the drawbacks that people face and yet more people prefer online banking than the old-style way because it appears more convenient. This research proves that in addition to maintain the effective and the proper security system and measures, we also should create a sophisticated legal framework and clear open communication in preventing and managing new security threats which might be a potential danger for users e- banking services. Pakistan can handle the security problems embarking on electronic banking through customer-centered solutions and engagement of all stakeholders thereby providing a platform for electronic services to be inclusive, result in growth and which in turn motivate financial Independence.