Value of E-Banking to Small and Medium-Sized Enterprises

Parveneh Shahnoori () and Glenn Jenkins ()
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Parveneh Shahnoori: Eastern Mediterranean University, North Cyprus

No 2015-09, Development Discussion Papers from JDI Executive Programs

Abstract: Policy makers in many countries encourage small and medium-sized enterprises (SMEs) to become more engaged in international trade activities. A complementary element to international trade is access to low-cost banking services. For policy makers and bank regulatory agencies it is important to know the value that SMEs place on alternative types of online banking services (e-banking). Using a choice experiment and a mixed logit model, we evaluate the value to these businesses of attributes of online banking, namely travel time saved, waiting time saved, unlimited 24/7 accessibility, and a high level of security. From this analysis an estimate is made of the willingness to pay for alternative packages of such services used by the SMEs in the United Arab Emirates free-trade zones. The results of this research show that 24/7 accessibility to banking services and a high level of security are statistically highly significant and valuable to these enterprises.

Keywords: willingness to pay; online banking; SME; free-trade zone; mixed logit model (search for similar items in EconPapers)
JEL-codes: D61 G21 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2015-09
New Economics Papers: this item is included in nep-ara, nep-ban, nep-dcm, nep-ent and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:qed:dpaper:281

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