From Crisis to Catalyst: How Covid-19 Reshaped Digital Banking Practices

Abstract

This research work examines how the use of digital banking services in Bannu, one of the regions in the Khyber Pakhtunkhwa of Pakistan has been affected by COVID-19. During the pandemic when government restrictions were established and the behavior of consumers changed drastically, the switch to digital banking platforms increased considerably. The study employs a quantitative approach, utilizing simple random sampling to select 300 banking employees in Bannu. Data analysis was conducted using SPSS to perform correlation and regression analysis, test reliability, and determine descriptive statistics. The results indicate a positive correlation between government restrictions and the use of digital banking services, as well as between changes in consumer behavior and customer satisfaction. Moreover, it was revealed that the evolution of consumer behavior played an important role in the implementation of digital banking. Such results agree with previous research, which emphasizes the influence of exogenous forces of lockdowns and health consciousness on the use of digital banking. The research can help policy-makers and the financial institutions in the area to advance digital banking facilities and infrastructure even further.

Keywords: Covid-19, Digitalization, Banking, Digital Banking, Banking Sector, Digital Transformation