THE EFFECT OF IMPLEMENTING CORE BANKING SERVICES ON PROFITABILITY. CASE STUDY: ALL BRANCHES OF A PRIVATE BANK IN MASHHAD

• Main Authors: Mansour Dehghan, mahdi ghafoorifard, Babak Shamsi, Seyed hamid Seyed heydari Seyed heydari
• Format: Article
• Language: English
• Published: University of Bacău 2015-07-01
• Series: Studies and Scientific Researches: Economics Edition
• Subjects: core banking; electronic banking; profitability
• Online Access: http://sceco.ub.ro/index.php/SCECO/article/view/300

Recently, the growth of information technology and increasing competition among banks has considerably affected attracting customers. Banking industry has made great changes to transform into the core banking. The present study aims to assess the effect of the implementation of core banking services on profitability. These services, as different branches of electronic banking, are consisting of internet banking, mobile banking, telephone banking, point of sale (POS), ATM, and electronic money which are all tested in the current study. In order to test research hypotheses and the existing relationship between variables, needed data has been collected and analyzed through the application of stepwise regression model. The achieved findings indicate a significant relationship between the application of internet banking and ATM and the variable of profitability, while there is no significant relationship between the application of telephone banking, mobile banking, POS, and electronic money and profitability.