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
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.