The Impact of Digitalization of Economy on Digitalization of Financial Services in Banking Industry of Pakistan

Abstract

The study investigated the impact of digitalization of economy (DE) on digitalization of financial services (DFS) with infrastructure for digitalization (ID) and training of banking staff (TBS) acting as mediators.  The data was collected and 300 questionnaires were distributed to Pakistani banking employees and 256 were received back.  The study employed SPSS version 21.0 and Smart PLS 3.2 software for data analysis. The findings show the positive behavior stemming from the digitalization of the economy that contributes to increased digitalization of financial services. Both banking staff training and digital infrastructure significantly mediate the relationship between the economy's digitalization and financial services. Pakistan's banking sector employees perceive the digitalization of financial services as enhancing productivity and organizational effectiveness. The results further show a significant relationship between the overall DE and financial services.