The Impact of Electronic Banking on Banking Transactions: A Cost-Benefit Analysis

Rimpi Kaur

The IUP Journal of Bank Management, 2013, vol. XII, issue 2, 62-71

Abstract: Banks are shifting from paper-based to electronic transactions. As of today, 50% of total transactions are electronic-based, and this share is increasing at an incredible rate. Hence, there is a need to assess the effects of electronic banking on business operations of banks. In this light, the present paper analyzes the computerization, expenditure on electronic banking and cost-benefit analysis of paper-based and electronic transactions. The paper notes that there is a swing from paper-based transactions to electronic transactions, with electronic transactions escalating drastically and earning business value at a triple rate. Per transaction value is 168 times per transaction cost which shows sound returns. The paper also evaluates the effect of transactions on cost and value through correlation-coefficient and concludes that electronic banking has positive and significant impact on cost and value of transactions.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:icf:icfjbm:v:12:y:2013:i:2:p:62-71

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