Solution and Issues

The financial institutions can scarcely be regarded as a form of innovation. Certainly its tradition virtue and recognized ways of doing business have been a source of pleasure to the sector (Bradley, L et al, 2003). There are different types of financial institutions. Generally speaking, financial institutions are ranked by their capitals or assets. According to the categorization structure of “Istward and Holland”, banks with capital less than US $40 billion are measured as small banks; those with more than US $40 billion but less than US $350 billion are regarded as medium-sized banks; and those with more than US $350 billion are large banks (Huang et al, 1990). Over the past few years a healthy investment has been made in the banking sector. As the financial institutions have a great impact on economy of any country. Their performance truly affects the economy of a country. In Pakistan banking is the most prominent growing sector having 40 banks with lot of branches. This sector contributes share in significant gross domestic product (GDP). These financial institutions are offering various types of services besides conventional banking services, such as, business loans, corporate banking, house financing and car leasing facilities. Over the last three years, almost 70% banks have converted to online banking, providing real-time information. Consequently the performance of banking is increasing not only in urban centers but also in rural areas.
Evolution in human culture has been consummated by the development of new technologies. The last few years have witnessed supreme changes throughout the world (Deshmukh S. G et al, 1995). Due to increase in technology usage the banking sector’s performance increases day by day. Online banking is becoming the indispensable part of modern day banking services. It is expected that 60 % of retail banking dealings will be online in ten years' time (Barwise, P. 1997). A financial institution has a lot of customers around the