A Role of Mobile Banking in Growing the Profitability of Banking Industry of Pakistan

Abstract

Practically a large portion of the world's grown-up populace needs access to conventional banking and other financial administrations. Pakistan is no special case and it is likewise among those nations at the lower end of the range of financial service consideration. Be that as it may, steps are being taken by government controllers and the private area to improve access to money related administrations, for example, credit, reserve funds, settlements, and protection. The prevailing research aims to evaluate the influence of M-banking (MB), accessibility of MB services, and transaction cost of MB on the profitability of the banking industry of Pakistan. A descriptive research design is utilized in the prevailing research. The study selects the overall population of the study. The study utilized secondary data from the 1^st quarter of 2011 to the 4^th quarter of 2018. The examination utilized time series data for analysis. The examination used the VECM model for analysis. For directional impact, the Granger causality test was utilized. The analysis s carried out on Eviews9. Positive long-run association between the accessibility of services, the transaction cost of MB on the profitability of banking in Pakistan is displayed by the outcomes of the prevailing research. The outcomes also revealed that there is unilateral causality running from m-banking, accessibility of MB services, and transaction cost of MB.