Effect of Cyber Security Costs on Performance of E-banking in Pakistan

Abstract

The electronic-banking (e-banking) system face a serious concern related to the cyber-security. Most of the e-banks around the globe faced security breached problem which results in billions of dollar loss and adverse impact on the image of the banks. As per the seriousness related to cyber security issues till yet limited amount of studies were conducted to measure the cyber security investment influence on product innovation performance and e-banking financial performance. Therefore, the study objectives are a) to measure the causal relationship of cyber security costs on the product innovation performance and financial performance of e-banking, b) to examine the effect of product innovation performance on the financial performance of e-banking and c) to find the intervening/mediating effect of product innovation performance in a relationship with cyber security costs and financial performance of e-banking in Pakistan. The targeted population was a managerial cadre staff member of e-banks working in Pakistan. The consequence exhibited that the cyber security costs puts considerable influence on product innovation performance and e-banking financial performance and product innovation performance considerably mediates in an association with cyber security costs and e-banking financial performance. The study concluded that the introduction of emerging technology and creative services and products has obviously had a positive effect on banks' operations. The recommendations and future area are also included in the study.

Keywords: Cyber-security costs. Financial Performance, E-banking