The impact of electronic banking channels and efficiency indicators on bank profitability A case study of the Melli Bank of Iran

elyas asgari ¹ ( PhD student in Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran )
bijan safavi ² ( Assistant Professor at Department of Economics, South Tehran Branch, Islamic Azad University, )

Submited date : 2024-12-08 Accepted date : 2025-02-11

Keywords: Multiple banking, financial indicators, efficiency indicators, profitability,

Abstract :

This study examines the impact of operational efficiency indicators and electronic banking channels on the profitability of the National Bank of Iran. Today, banks are facing challenges such as changing customer expectations, technological developments, regulatory requirements, and economic crises, which have led to changes in the banking system; therefore, banks should benefit from the development of companies or startups in the field of financial technology. Recent advances in information technology have led to the rapid development of new financial services. In this regard, return on assets (ROA)  return on equity (ROE) indicators are included as dependent variables, and operational variables include net operating margin (MNO), net profit margin (MNI), non-interest margin (MNNI), asset turnover (RA), and financial leverage (MC), and electronic banking variables include the number of ATMs (ATMs), the number of point-of-sale terminals (POS), the number of mobile accounts (NBM), and the number of branch transactions (NMC) as independent variables in the model. The research data were collected from the financial and operational information of the National Bank of Iran and analyzed using a panel data model. The results show that operational variables have a positive but limited effect on ROA and ROE, while e-banking channels do not have a significant effect on these indicators. The overall indicators of the model, including the low coefficient of determination (R²), indicate that the model alone is not capable enough to explain changes in profitability and the need to add additional variables and investigate more deeply  felt 

 

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