Impact of Globalisation, AI Adoption, and FinTech Integration on Banking Sector Performance and Customer Satisfaction in Post-COVID Pakistan

Muhammad Saeed Iqbal and Sofi Mohd Fikri
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Muhammad Saeed Iqbal: Islamic Business School, Utara Universiti of Malaysia
Sofi Mohd Fikri: Islamic Business School, Utara Universiti of Malaysia

The Pakistan Development Review, 2025, vol. 64, issue 1, 1-18

Abstract: This study aims to investigate the combined impact of Globalisation Index (GI), AI Adoption Rate (AIA), and FinTech Integration (FI) on the financial performance and customer satisfaction of major banks in post-COVID Pakistan. Grounded in Globalisation Theory, Technological Adoption Theory, and Financial Resilience Theory. Quantitative with panel data regression analysis. Major Banks in Pakistan over the period 2010-2023, including both Islamic and conventional banks. Secondary data from annual reports, globalisation indices, and regulatory reports. Descriptive statistics, normality tests, correlation analysis, heteroscedasticity tests, and panel data regression. Findings indicate that GI, AIA, and FI significantly influence both financial performance and customer satisfaction. Specifically, FI showed the strongest positive impact, followed by AIA and GI. The models for financial performance and customer satisfaction achieved R² values of 0.648 and 0.715 respectively, indicating substantial explanatory power. This study demonstrates that enhancing globalisation efforts, adopting AI technologies, and integrating FinTech solutions are crucial strategies for improving financial performance and customer satisfaction in Pakistan’s banking sector post-COVID. This study integrates theories of globalisation, technological adoption, and financial resilience to offer a comprehensive analysis of contemporary banking trends in Pakistan.

Keywords: Globalisation; Artificial Intelligence; FinTech; Banking Sector; Post-COVID Pakistan; Financial Performance; Customer Satisfaction; Financial Resilience (search for similar items in EconPapers)
Date: 2025
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