IDEAS home Printed from https://ideas.repec.org/a/gam/jrisks/v12y2024i8p133-d1461956.html
   My bibliography  Save this article

Digital Risk and Financial Inclusion: Balance between Auxiliary Innovation and Protecting Digital Banking Customers

Author

Listed:
  • Faraz Ahmed

    (College of Business Management, Institute of Business Management, Karachi 75300, Pakistan)

  • Arsalan Hussain

    (College of Business Management, Institute of Business Management, Karachi 75300, Pakistan)

  • Sajjad Nawaz Khan

    (Department of Business Administration, Iqra University, Main Campus, Karachi 75500, Pakistan)

  • Arsalan Haneef Malik

    (College of Business Management, Institute of Business Management, Karachi 75300, Pakistan)

  • Muhammad Asim

    (EIAS Data Science Lab, CCIS, Prince Sultan University, Riyadh 11586, Saudi Arabia)

  • Sadique Ahmad

    (EIAS Data Science Lab, CCIS, Prince Sultan University, Riyadh 11586, Saudi Arabia)

  • Mohammed El-Affendi

    (EIAS Data Science Lab, CCIS, Prince Sultan University, Riyadh 11586, Saudi Arabia)

Abstract

The digital economy’s rise has fueled the growth of digital banking, but concerns linger about customer protection. While offering advantages like financial inclusion, this shift disrupts traditional banking experiences and introduces potential risks. Customer safety in this new landscape is paramount, as dissatisfied users may switch providers and institutions risk reputational damage. To remain competitive, financial institutions must prioritize a secure experience that aligns with customer expectations. This study investigates five key factors influencing customer protection in Pakistan’s digital financial services. Analysis reveals all factors positively impact customer protection, with information security holding the most weight. These findings highlight the need for robust information security measures as a critical driver for the Pakistani digital banking industry’s success.

Suggested Citation

  • Faraz Ahmed & Arsalan Hussain & Sajjad Nawaz Khan & Arsalan Haneef Malik & Muhammad Asim & Sadique Ahmad & Mohammed El-Affendi, 2024. "Digital Risk and Financial Inclusion: Balance between Auxiliary Innovation and Protecting Digital Banking Customers," Risks, MDPI, vol. 12(8), pages 1-21, August.
    • Handle: RePEc:gam:jrisks:v:12:y:2024:i:8:p:133-:d:1461956
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-9091/12/8/133/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-9091/12/8/133/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Muhammad Anshari & Mohammad Nabil Almunawar & Masairol Masri, 2020. "Financial Technology and Disruptive Innovation in Business: Concept and Application," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 11(4), pages 29-43, October.
    2. Mobin Fatma & Imran Khan, 2023. "Impact of CSR on Customer Citizenship Behavior: Mediating the Role of Customer Engagement," Sustainability, MDPI, vol. 15(7), pages 1-11, March.
    3. Usha Thorat, 2008. "Financial Inclusion and Information Technology," Working Papers id:1653, eSocialSciences.
    4. Florian Diener & Miroslav Špaček, 2021. "Digital Transformation in Banking: A Managerial Perspective on Barriers to Change," Sustainability, MDPI, vol. 13(4), pages 1-27, February.
    5. Luigi Wewege & Jeo Lee & Michael C. Thomsett, 2020. "Disruptions and Digital Banking Trends," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(6), pages 1-2.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmet Faruk Aysan & Abdelilah Belatik & Ibrahim Musa Unal & Rachid Ettaai, 2022. "Fintech Strategies of Islamic Banks: A Global Empirical Analysis," FinTech, MDPI, vol. 1(2), pages 1-10, June.
    2. Paraskevi Boufounou & Magdalini Mavroudi & Kanellos Toudas & Georgios Georgakopoulos, 2022. "Digital Transformation of the Greek Banking Sector in the COVID Era," Sustainability, MDPI, vol. 14(19), pages 1-13, September.
    3. Kayenaat Bahl & Ravi Kiran & Anupam Sharma, 2023. "Scaling Up Banking Performance for the Realisation of Specific Sustainable Development Goals: The Interplay of Digitalisation and Training in the Transformation Journey," Sustainability, MDPI, vol. 15(18), pages 1-22, September.
    4. Lambert Kofi Osei & Yuliya Cherkasova & Kofi Mintah Oware, 2023. "Unlocking the full potential of digital transformation in banking: a bibliometric review and emerging trend," Future Business Journal, Springer, vol. 9(1), pages 1-18, December.
    5. Carolin Bock & Sven Siebeneicher & Jens Rockel, 2022. "The “C” in crowdfunding is for co-financing: exploring participative co-financing, a complement of novel and traditional bank financing," Journal of Business Economics, Springer, vol. 92(9), pages 1559-1602, November.
    6. Ignacio Carnicero & Cristina González-Gaya & Víctor F. Rosales, 2021. "The Transformation Process of the University into a Data Driven Organisation and Advantages It Brings: Qualitative Case Study," Sustainability, MDPI, vol. 13(22), pages 1-32, November.
    7. Iza GIGAURI, 2022. "The Promise of Financial Inclusion for Developing Economies," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 8(6), pages 7-20, September.
    8. Zhian Zhiow Augustinne Wong & Ramez Abubakr Badeeb & Abey P. Philip, 2023. "Financial Inclusion, Poverty, and Income Inequality in ASEAN Countries: Does Financial Innovation Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 471-503, September.
    9. Zhengda Xu & Haiyao Liu & Song Lin, 2022. "The Influence of Government Green Development Policy on a Firm’s Disruptive Innovation," Sustainability, MDPI, vol. 14(23), pages 1-15, December.
    10. Imran Khan & Mobin Fatma, 2023. "Does Perceived Sustainability Affect the Customer Responses toward the Brands? Role of Customer Engagement as a Mediator," Sustainability, MDPI, vol. 15(10), pages 1-13, May.
    11. Robert Fabac, 2022. "Digital Balanced Scorecard System as a Supporting Strategy for Digital Transformation," Sustainability, MDPI, vol. 14(15), pages 1-26, August.
    12. Muhammad Anshari & Munirah Ajeerah Arine & Norzaidah Nurhidayah & Hidayatul Aziyah & Md Hasnol Alwee Salleh, 2021. "Factors influencing individual in adopting eWallet," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(1), pages 10-23, March.
    13. Syed Aamir Aijaz & Grima Simon & Sood Kiran, 2024. "Assessing the Role of the Fintech Era on the Banking Stability of an Emerging Economy: Interaction Analysis of the Indian Banking Industry," Folia Oeconomica Stetinensia, Sciendo, vol. 24(1), pages 182-202.
    14. Gábor Pörzse & Zoltán Csedő & Máté Zavarkó, 2021. "Disruption Potential Assessment of the Power-to-Methane Technology," Energies, MDPI, vol. 14(8), pages 1-21, April.
    15. Qiulian Shen & Yuxuan Du & Jingxian Huang, 2024. "Consumer Citizenship Behavior in Online/Offline Shopping Contexts: Differential Impact of Consumer Perceived Value and Perceived Corporate Social Responsibility," Sustainability, MDPI, vol. 16(7), pages 1-19, April.
    16. Muhammad Anshari & Mohammad Nabil Almunawar & Masairol Masri, 2022. "Digital Twin: Financial Technology’s Next Frontier of Robo-Advisor," JRFM, MDPI, vol. 15(4), pages 1-9, April.
    17. Duhnea Cristina & Moraru Andreea-Daniela, 2024. "Study On The Determinants Of Consumer Satisfaction With Digital Banking Services Provided By Banks. Evidence From Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 22-36, February.
    18. Georgia Lagoudaki & Efi Tsitskari & Thomas Karagiorgos & Georgia Yfantidou & George Tzetzis & George Tsiotras, 2024. "Corporate Social Responsibility and Consumer Behavior in Sports: Exploring and Adapting a Participatory Sports Scale," Sustainability, MDPI, vol. 16(14), pages 1-18, July.
    19. Naila Mushtaq & Shama Suleman & Abdul Qayyum, 2023. "Addressing User Concerns: A Qualitative Study on Data Privacy in Mobile Banking," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 135-140.
    20. António Porfírio, José & Augusto Felício, José & Carrilho, Tiago, 2024. "Factors affecting digital transformation in banking," Journal of Business Research, Elsevier, vol. 171(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jrisks:v:12:y:2024:i:8:p:133-:d:1461956. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.