Preview

Student/Research Assistant

Powerful Essays
Open Document
Open Document
5917 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Student/Research Assistant
THE IMPACT OF INTERNET BANKING ON BANK’S PROFITABILITY : THE CASE OF NORTH CYPRUS

Nesrin Özataç(Asst.Prof.Dr) Eastern Mediterranean University E-Mail: nesrin.ozatac@emu.edu.tr

Jude Chimezie Nwobodo(MSc) Eastern Mediterranean University E-Mail: juddywest@yahoo.com

ABSTRACT The growth in information technology is becoming an important factor in the development of the banking industry. For the banks, technology has emerged as a strategic resource for achieving higher efficiency, control of operation, productivity and most importantly, profitability. The improvement technology has really prompted the banks to meet the customers’ expectation in Northern Cyprus as well. In this study, the data is drawn from the web-sites of commercial banks presenting the internet products and services. It investigates the profile of commercial banks that offer internet banking using univariate statistical analysis relative to other commercial banks with respect to profitability. The results show that there has been differences in the measures of expenditures and performance in banks that are providing internet services and no significant correlation between profitability and internet banking.

Keywords: Internet Banking, Profitability, North Cyprus, Efficiency, Banks

1

INTRODUCTION

The outstanding development in modern technology together with the persistent merge of information technology had not only created severe awareness, but also had brought a great lot in banking operations as a whole. For the banking sectors, modernized technology has become known as a tactical way of realizing higher efficiency, control of operation, higher yield and most importantly, profitability.

Information technology adoption and its usage are becoming an essential feature in today’s development most especially in the banking sector. The use of Internet banking allows for detailed assesses of customers account, make necessary enquiries and undertake banking transaction. The usage



References: Furst, Karen, William W. Lang, and Daniel E. Nolle, (2000), .Who offers Internet banking. Quarterly Journal, Office of the Comptroller of the Currency, vol. 19, no. 2, June, 29-48. Sullivan, R.J. (2000), How has the adoption of Internet Banking Affected Performance and Risk at Banks? A look at internet banking in the Tenth Federal Reserve District, Financial Industry Perspectives, Federal Reserve Banks of Kansas City, December.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Sfdsfdsdfsdf

    • 611 Words
    • 3 Pages

    Tan, M.; Teo, T. S. (2000): “Factors influencing the adoption of Internet banking”, Journal of the Association for Information Systems, 1 (5), pp. 1–42.…

    • 611 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    1.1.1 Banks have conventionally been in the vanguard of harnessing technology to develop their products, services and competence. They have, over a long time, been using electronic and telecommunication networks for delivering a extensive variety of value added products and services. The delivery channels include direct dial – up connections, private networks, public networks etc and the devices include telephone, Personal Computers including the Automated Teller Machines, etc. With the popularity of PCs, easy access to Internet and World Wide Web (WWW), Internet is progressively more used by banks as a channel for receiving instructions and delivering their products and services to their clientele. This form of banking is generally referred to as Internet Banking, although the range of products and services offered by different banks vary broadly both in their content and superiority.…

    • 1941 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Research

    • 8612 Words
    • 35 Pages

    Electronic banking is sometimes defined as the provision of retail and small value banking products and services through electronic channels. It is also often used to describe processes in which customers can perform banking transactions without visiting a brick and mortar institution. Other innovations have taken place such as phone and internet banking which again provide customers the ability to access banking services from various locations and at a 24-hour by 7-days basis. At end-June 2004, 57 banks (41 domestic banks and 16 foreign banks) provided electronic banking services. Out of the 57 banks, 36 were universal and commercial banks (85.7 percent of the 42 operating universal and commercial banks) and 21 were thrift banks (23.6 percent of the 89 operating thrift banks). With these developments, customers are able to enjoy the many conveniences and lower costs that are offered by the said innovations. However, it can be seen that the poor and low-income segment is still underserved or do not fully enjoy the benefits of such innovations. Another example is internet banking services, which has significantly increased convenience for clients, as they are able to perform certain transactions without leaving their home or workplace. However, this service is available only to those who have internet connection or are, at the very least, computer literate. (Jimenez and Roman, 2007)…

    • 8612 Words
    • 35 Pages
    Powerful Essays
  • Powerful Essays

    ICT in banking. 200 Chennai respondents were taken as sample and the data was analysed and drawn meaningful…

    • 3072 Words
    • 25 Pages
    Powerful Essays
  • Powerful Essays

    Online Banking

    • 3195 Words
    • 13 Pages

    References: [1] IResearch, Internet banking in China industry development report[R], Shanghai: IResearch, 2010. [2] Yongfeng Zhao, Security Evaluation on Personal Internet banking of Commercial Banks[J], Commercial Times, 23 (2011)43-44. [3] Jingqi Zhang, Yuhang Wang. Analysis on Development Strategy of China 's Internet Banking Business. Modern Business, 2 (2009)52-53. [4] IResearch.2011Q3, China quarterly internet monitoring[EB/OL]. http://ec.iresearch.cn/56/20111118/156477.shtml [5] Yanping Luo, Study on Business of internet Bank Based on SWOT, Modern Business Trade Industry, 14 (2009)101-104. [6] Weiqing Li, Analysis of American Online-banking Services Strategy & Its Enlightenment, Journal of Chengdu University(Social Sciences), 5 (2009)21-23. [7] Ying Ren, Customer Relationship Management in Chinese Commercial Banks and Countermeasures, Co-operative Economy & Science, 7 (2012)56-57. [8] Minghui Xu, Discussion on Reducing the Cost of Enterprise Currency Fund Management on Internet, China Management Informationization, 15(08) (2012)23-24. [9] Yahui Li, Internet banking of Commercial Bank for SME lending, Times Finance, 4 (2012)93. [10] Honghan Liu, Analysis of Internet Banking Services Quality Improvement, Hainan Finance, 5 (2012)68-77. [11] Shouyong Zhao, Strategy Research on the Development of Internet banking, Assets and Finances in Administration and Institution, 4 (2012)101. [12] Ran An, Analysis of relationship between Internet banking and third-party payments, Manager’ Journal, 1 (2012)35. [13] Xuemin Xu, Analysis of operational risks of online banking in China and its countermeasures, Assets and Finances in Administration and Institution, 8 (2012)99-100. [14] Yan Chen, China’s Internet Banking Problems in the Development and Countermeasures, Value Engineering, 34 (2011)141-142. [15] Wenji Jin,Zhe Shen, An Empirical Analysis on the Five Dimensions of Internet Banking Service Quality in China, Chinese Review of Financial Studies, 4 (2011)117-126.…

    • 3195 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    For over a decade, the rapid advancement in information and communication technology has significantly affected the banking industry. The banking sector has embraced the use of technology to serve its client’s faster and also to do more with less. Emerging technologies have changed the banking industry from paper and branch based banks to “digitized and networked banking services”. Unlike before, broadband internet is cheap and it makes the transfer of data easy and first. Technology has changed the accounting and management system of all banks. And it is now changing the way how banks are delivering services to their customers. However this technology comes at a cost, implementing all this technology has been expensive but the rewards are limitless.…

    • 4599 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Marketing Management Kotker

    • 15785 Words
    • 64 Pages

    Daniel, E. (1999), “Provision of electronic banking in the UK and the republic of Ireland” International Journal of Bank Marketing, vol. 17 no. 2, 72-82.…

    • 15785 Words
    • 64 Pages
    Powerful Essays
  • Powerful Essays

    References: Agboola, A. A. (2001) “Impact of Electronic Banking on Customer Services in Lagos,Nigeria” in Ife Journal of Economics and Finance. Department of Economics,O.A.U, Ile-Ife, Nigeria, vol. 5, Nos. 1&2 Aragba-Akpore, S. (1998): ‘The Backbone of Banks’ Service Regeneration’,Moneywatch, July 22, p23. Harold, B. & Jeff, L. (1995): ‘Don’t Let Technology Pass You By’, ABA Banking Journal, Box 986, Omaha, NE, p.73 Ovia, J. (2000):’From Banking Hall to E-Platform’, Financial Standard, January 15. Woherem, E. W. (2000): Information Technology in the Nigerian Banking Industry, Spectrum,Ibadan…

    • 2391 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Mis Practise in Exim Bank

    • 9656 Words
    • 39 Pages

    Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies. The banking industry has changed in the way they provide service to their customers. The financial sector made remarkable progress in adopting electronic forms of payments instead of traditional paper-based ones in the just concluded year. Information Technology has brought about this momentous transformation. Securities of IT systems for a financial institution have therefore gained much greater in importance. Moreover Information and information technology systems are essential assets of the banks and as well as for their customers and stake-holders. Customers are now demanding new, more convenient, delivery systems. The use of debit card, credit card, automated teller machine (ATM), internet banking, mobile banking, automated check processing and credit information system increased significantly in 2011.…

    • 9656 Words
    • 39 Pages
    Powerful Essays
  • Good Essays

    ROLE OF INFORMATION TECHNOLOGY IN BANKING INDUSTRY Ilyas-Ur Rahman, Osmania University, Hyderabad, INDIA INTRODUCTION I.T. in Banking: 1). Technology has opened up new markets, new products, new services and efficient delivery channels for the banking industry. Online electronics banking, mobile banking and internet banking are just a few examples. 2). Information Technology has also provided banking industry with the wherewithal to deal with the challenges the new economy poses. Information technology has been the cornerstone of recent financial sector reforms aimed at increasing the speed and reliability of financial operations and of initiatives to strengthen the banking sector. 3). The IT revolution has set the stage for unprecedented increase in financial activity across the globe. The progress of technology and the development of world wide networks have significantly reduced the cost of global funds transfer. 4). It is information technology which enables banks in meeting such high expectations of the customers who are more demanding and are also more techno-savvy compared to their counterparts of the yester years. They demand instant, anytime and anywhere banking facilities. 5). IT has been providing solutions to banks to take care of their accounting and back office requirements. This has, however, now given way to large scale usage in services aimed at the…

    • 1208 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Internet Banking

    • 1083 Words
    • 8 Pages

    According to《China Internet banking investigate in 2009》 reported that: Although the financial crisis in the United States spreads around the world, but the developing of China internet banking maintained a growth trend, especially personal internet banking, during the past year, with help of competent authorities, commercial banks and China Financial Certification Authority, personal internet banking show a strong momentum of development. Besides, in Viet Nam, internet banking is a promising service because of the convenience and modernity of it. The main convenience is that lots of people using internet banking increased rapidly and many banks have investment, development and application delivery channels this new service. With internet banking , customers instead of going to bank to have transactions they can sit at home or agency, or a café to make certain transactions with the bank. At the same time, the survey also found that, while Internet banking users develop fast, the activity of user use Internet banking also increase rapidly. The activity increase fast and users would like taste more functions of internet banking show that: To lots of users internet banking played an important role in their daily life and business operating works. With modern information technology, internet banking showed great vitality. According to incomplete statistics, most of big banks in USA can offer Internet banking transaction. Despite the different banks have their different development strategies, and they are in different…

    • 1083 Words
    • 8 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Elctronic Banking

    • 262 Words
    • 2 Pages

    It is banking service that allows its customers to conduct their daily financial transactions online 24/7 as it is a ease of access for the customers. These transactions includes payroll and direct credit transactions. In 1980’s New York’s four major banks which includes Citibank, Chase Manhattan, Chemical Manufacturers Hanover were the first who introduced Electronic Banking and offering home banking services. While many financial institutions took steps to implement electronic banking in mid 1990s but customers were hesitant to get use of monetary transactions through websites. Therefore companies such as America Online, Amazon.com and Ebay widespread the idea of paying items through online. In 2000, 80 percent of the U.S banks offered e-banking but still it took 10 years to acquire 2 million e-banking customers. In 2001, Bank of America became the first bank to top 3 millions e-banking customers. In contrast larger institutions such as Citigroup claimed upto 2.2millions relationships online while J.P. Morgan Chase had more than 750,000 online banking consumers. However by October 2001 Bank of America executed a record 3.1 million electronic bill payments. Customers who use e-banking tend to be more loyal and profitable and willing to refer their banks to friends and family. Online customers have maintain higher balances and got lower attribution rates.…

    • 262 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Daniel, E., & Storey, C. (1997). On-line banking: Strategic and management challenges pergamon. PII: 4-5 (S0024-63010007).…

    • 1832 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Green Computing

    • 2018 Words
    • 9 Pages

    the people in the world now moving towards the internet banking. The ATM and the Net transactions are becoming popular. But the customer is clear on one thing that he wants net-banking to be simple and the banking sector is matching its steps to the march of technology.…

    • 2018 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    ABSTRACT The development and the increasing progress that is being experienced in the Information and Communication Technology have brought about a lot of changes in almost all facets of life. In the Banking Industry, it has been in the form of online banking, which is now replacing the traditional banking practice. Online banking has a lot of benefits which add value to customers’ satisfaction in terms of better quality of service offerings and at the same time enable the banks gain more competitive advantage over other competitors. There are some associated risks identified in the study that seem to hinder the success of e-banking services and thus constitute major concern to both financial institutions and customers. This paper therefore, examines, if customers’ choice of banks is influenced by the quality of e–banking services provided. Stratified sampling was used; while the survey Instrument was a developed Questionnaire comprising open ended and Likert type of questions. The Likert type questions have a 4 point scale (indicating 1 = very comfortable and 4 = uncomfortable) divided into two (2) sections: personal details and customers’ e-banking preference in Sierra Leone. The instrument…

    • 6364 Words
    • 26 Pages
    Powerful Essays