THE IMPACT OF E-BANKING SERVICES ON PROFITABILITY: THE CASE OF A JORDANIAN COMMERCIAL BANK
AbstractThe world has witnessed successive waves of technology and telecommunications changes in the last few years. These waves of digital revolution has resulted directly to changes in the banking sector around the world. Banks in Jordan followed these waves which affected the ways of receiving and sending financial information, and promoting the banks new product and services. Traditional banking services have been subjected to many stages of development, and shifted from traditional activities that uses paper, to technical and virtual banks that use different networks. This study aims to evaluate the effect of E-banking services on the bank's profitability in Jordan. We have selected a sample of one of the biggest and successful commercial banks in Jordan to analyze the impact of implementing E-banking services on its profitability for the period of 2010-2015. The results of this paper shows that there is a positive relationship between banks billing (e-FAWATEER com) services, the use of E-banking , and using banks cards on the bank's profitability.
Allen, & Hamilton. (2002). Internet Banking: A survey of current and future development. Al-Smadi, M., & Al-Wabel, S. (August, 2011). The impact of electronic banking on the profitability of banks in Jordan. Journal of Internet Banking and Commerce, 16(2). Bahram, M., Zeinab, V., & Hussein, M. (2013). The Effect of Using Electronic Banking on Profitability of Bank. Interdisciplinary Journal of Contemporary Research In Business, 4(12). Birch, D., & Young, M. A. (1997). Financial Services and the Internet- What does cyberspace mean for the financial services industry? Internet Research: Electronic Networking Applications and Policy, 7(2), 120-128. https://doi.org/10.1108/10662249710165262 Egland, K. L., Furst, K., Nolle, D. E., & Robertson, D. (1998). Banking over the Internet. Quarterly Journal of Office of Comptroller of the Currency, 17(4). Freedman, C. (2000). Monetary Policy Implementation: Past, Present, and Future â€“ Will Electronic Money Lead to the Eventual Demise of Central banking? International Finance, 3(2), 211-227. https://doi.org/10.1111/1468-2362.00049 Hernando, I., & Nieto, M. J. (2005). Is the Internet Delivery Channel Changing Banksâ€™ Performance? The Case of Spanish Banks. Banco de Espana, Unpublished Manuscript. Ho, C. S., Robert, J. K., & Liang, P. T. (2010). Internet-based selling technology and ecommerce growth: A hybrid growth theory approach with cross-model inference. Husni, A. K., & Noor, M. Al-Sa'di. (2011). The Impact of E-Banking on Bank Profitability: Evidence from Jordan. Middle Eastern Finance and Economics, 13. KPMG. (1999). Internet Financial Services Survey. Malhotra, P., & Singh, B. (2009). The Impact of Internet Banking on Performance and Risk: The Indian Experience. Eurasian Journal Business and Economics, 2(4), 43-62. Mohammad, A. O., & Saad, A. A. (2011). The Impact of EBanking on The Performance of Jordanian Banks. Journal of Internet Banking and Commerce, 16. Nathan, L. (1999). Community banks are going online, Community and Banking. Federal Reserve Bank of Boston. Onay, C., Oscoz, E., & HelvacÄ±oÄŸlu, A. D. (2008). The impact of Internet-Banking on Bank Profitability- The Case of Turkey. Owusu, B. (1997). Customer switching behaviour in service industries: An exploratory study. Journal of Marketing, 59(2), 71. Pyun, C. S., Scruggs, L., & Nam, N. (2002). Internet Banking in the US, Japan and Europe. Multinational Business Rev., 7381. Sabah Abdullah Al-Somali, R. G. (2007). Internet Banking Acceptance in the Context of Developing Countries: An Extension of the Technology Acceptance Model. Birmingham: Operations &Information Management Group, Aston Business School, Birmingham B47ET, UK. Wright, A. (2002). The Changing Competitive Landscape of Retail Banking in the E-commerce Age. Thunderbird International Business Review, 44(1), 71-84. https://doi.org/10.1002/tie.1039