Impact of Electronic Banking on Operational Performance of Commercial Banks in Sri Lanka

Abstract

The banking industry has experienced a dramatic change resulting from the adoption of Information Communication Technology. The data was gathered from 2014-2019 concerning internet banking, branch network and Automated Teller Machine, based on the annual reports of selected ten banks. Regression analysis was done for the period to determine the effects of ebanking on commercial banks' operations. Data is stationary at the level and normally distributed. Under the fixed-effect model, this study found a positive significant relationship among Internet Banking return on Assets, negative significant with Return on Assets and Branch Network, Automated Teller Machine. Also, an insignificant relationship between Return on Equity and Internet Banking so, internet banking is familiar with a recent year in Sri Lanka. Cost to Income and Internet Banking have a negative significance and other all variables are a significant relationship with Cost to Income. overall models statistically significant. Results suggest that E-banking has significantly improved the bank operational performance in Sri Lank from 2014 to 2019.

Impact of Electronic Banking on Deposit Money Banks Performance in Nigeria: Evidence from Dynamic Ordinary Least Squares Technique

“…Prabodhi and Buddhika [9] looked into the impact of electronic banks on operational performance of commercial banks in Sri Lanka between 2014 and 2019. Cost to income ratio, return on assets, return on equity, branch network, internet banking, and automated teller machine were adopted as the variables.…”

“…The customers depositing, withdrawing, transferring, or cheques clearing of cash is easier and faster [1]. This paper reviewed some recent literature on the subject matter such as [1][2][3][4][5][6][7][8][9], among others. The methodologies, scope, countries, variables, and findings of their papers differ and also mix.…”