Research On The Impact Of Electronic Banking On The Business Performance Of Commercial Banks

Banking is one of the sectors that the technological progress is monitored closely and used widespread.It is difficult to develop new products and services for banking market as in many financial markets.Hence,the new forms of existing banking products offered to customers is great important.Technology-based applications such as internet banking,mobile banking,telephone banking.ATM and POS network brings significant advantages to customers in the delivery of existing products.The most important of these advantages is available to every banking products with lower cost banking operations for 24 hours to 7 days.Consequently,the dependency to branches is decline.All of these features encourage banks to take electronic-based services for customers which are increasing day by day.The increasing demand for such services enforced to banks invest a great deal of investment to this fields.Technology-based products give opportunities to have significant cost advantages,increasing profitability and facilitate lower risk than traditional banking products.In addition,studies show that if there is enough customer demand the technology-based products of the bank there will be the return of investment on this field in short time.Empirical studies made on various countries,reveals that electronic banking services improve the performance of banks.However,the expect result is not seen in some less developed and developing countries because of infrastructure investment could not do enough and customers prefer traditional branch-based banking.This paper based on the annual data of 8 listed banks in our country measured and analyzed electronic banking business efficiency using the DEA model,and used empirical multivariate regression model analysis of the electronic banking business impact on the performance of the commercial banks.The study found that the state-owned commercial banks electronic banking business efficiency is lower than the joint-stock commercial bank,the pure technical efficiency is at a high level,electronic bank scale efficiency of state-owned is lower than the joint-stock banks;the substitution rate,the number of self-help equipment and the number of electronic bank customers have a significant positive impact on the performance of the bank.The ratio of loan to deposit and the rate of non-performing loans have a negative impact on the performance of banks and have passed a significant test.At the same time,on the basis of the above empirical analysis,this paper puts forward the policy suggestions to improve the business performance of China's commercial banks.