The Impact of Information Technology on the Efficiency of Banks : An Empirical Investigation from Pakistan

Use of Information technologies (IT's) is increasing day by day in banking industry all over the world. Investment in IT is helping the top level management in achieving their objectives and anticipated targets. This empirical study reveals the contribution and role of IT on the efficiency of bank and also explores the existence of relationship between the investment in IT and bank efficiency measures. The result shows that investment in information system is contributing towards increase market share, reducing operating cost, improved customer services and assisting the banks in introducing new products and services. These are the major benefits of investment in IT which are propelling many banks to invest in IT. That is the reason that most of the organizations in Pakistan are using the IT as competitive tool. The banks in Khyber Pukhtoon Khowa (KPK), a province of Pakistan are using IT to get competitive advantage as well