The Research On Evaluation Of E-banking Sector Performance Based On Balanced Scorecard

In October 1995, the first online bank - Security First Network Bank (SFNB) was born in the United States. Subsequently, the vast majorities of influential domestic commercial banks gradually set up their own electronic banking product systems, including Internet banking, telephone banking, mobile banking and so on, which more customers utilize electronic banking products year by year, leading to steady increase of income from intermediate operation. Therefore, commercial banks have laid emphases on the development of electronic banking sector. For the needs of business development, the commercial banks have set up electronic banking sector, in charge of exploiting and maintaining electronic banking business development. When electronic banking sector becomes a new business, how to evaluate its performance is a subject which needs to be researched urgently.On the basis of economic theories and practice from comparing abroad and local situation, this dissertation analyzes the insufficiency of current performance assessment model, and imports the Balanced Scorecard into performance assessment system of electronic banking department by summarizing the principles and advantages of the Balanced Scorecard. Combined Balanced Scorecard with the author's working practice, this paper constructs the electronic banking sector performance evaluation system from four dimensions of finance, client, internal processes, learning and innovation. Simultaneously, this article applies Lever Analysis Theory to quantitatively calculate the weight of indicators at each level.The text of this paper consists of four parts. The first division mainly introduces the basic theories of performance and performance evaluation, analyzes the significance of banking performance evaluation, and recalls the evolutionary process of performance estimate method, and briefly initiates deficiencies of existing performance evaluation system of electronic banking departments. The second part summarizes the principles and advantages of the Balanced Scorecard, also analyzes the precondition for the implementation of the Balanced Scorecard. Balanced Scorecard will be brought into performance evaluation of electronic banking sector. Part three elucidates steps on the use of Balanced Scorecard for performance evaluation of electronic banking sector, and utilizes Lever Analysis Theory to allocate weights of each level's indicators, and put forwards comprehensive performance evaluation method, as well as integrates indicators at all levels. The last part appraises the 2005-2007 operating performance of Hunan Branch of the Industrial and Commercial Bank, by applying the performance evaluation system of electronic banking department, basing on the Balanced Scorecard, furthermore concludes improvement measures from four dimensions of finance, customer, internal processes, learning and innovation.