Impact of Mobile Banking on Customer Satisfaction: Evidence from Pakistan’s Banking Sector

The advancement of information and communication technology has revolutionized the banking industry globally, with mobile banking emerging as one of the most significant innovations. In Pakistan, the adoption of mobile banking has increased substantially, yet there remains limited empirical research on its effect on customer satisfaction. This study investigates the relationship between mobile banking and customer satisfaction in Pakistan’s banking sector. Using a structured questionnaire, primary data were collected from 200 customers of Habib Bank Limited and Bank Al-Falah in Peshawar. Quantitative methods including regression, correlation, and reliability statistics were applied to analyze the data. Results show a strong positive relationship between mobile banking and customer satisfaction, with a correlation coefficient (r) of 0.916 and R² of 0.84, indicating that mobile banking explains 84% of the variance in customer satisfaction. Findings suggest that mobile banking is a customer-friendly alternative to branch banking, enhancing convenience, accessibility, and efficiency. The study recommends that banks expand mobile banking services to rural areas, improve security mechanisms, and provide digital literacy programs to increase adoption and satisfaction. This research contributes to the growing body of literature on financial technology in developing countries and provides practical insights for the banking industry in Pakistan.