The Effect Of Using Electronic Banking On Profitability Of Bank

5563 Words Mar 16th, 2015 23 Pages
ijcrb.webs.com

APRIL 2013

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

VOL 4, NO 12

The Effect of Using Electronic Banking on Profitability of Bank
Bahram Meihami
Department of Accounting, Ghorveh Branch, Islamic Azad University, Ghorveh, Iran
Zeinab Varmaghani
BA Student of Primary Education, Ghorveh Branch, Islamic Azad University, Ghorveh, Iran
Hussein Meihami
BA Student of English Teaching, Imam Khomeini International University, Qazvin, Iran
Abstract:
Electronic banking is the use of electronic means to transfer funds directly from one account to another, rather than by check or cash. Through reducing bank costs, electronic banking can increase bank incomes. In this research the role of electronic banking (i.e.
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In the developed banks, the different channels and systems of banking are managed to gather so information and communication management improve and cause to decrease in bank costs and increase in bank income and also makes clients satisfy.

2. Problem statement:
The most important goals of for-profit entities managers is to maximize shareholders ' wealth and company profit. Increasing number of private banks and privatization of governmental banks was due to consideration of increasing private banks income and increasing share profit.
Besides, giving different services made the banks famous, and caused attract more clients and more profit. However, all of those achievements could be attained by using new technology.

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ijcrb.webs.com

APRIL 2013

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

VOL 4, NO 12

From among new technologies which were very popular at present, some had been mentioned:
Information and Communication technology which were helpful in:


Giving different services



Satisfying clients



Quality improvement of services



Facilitating official issues



Better human resource management

Information and communication technology contributed to different

E-services: giving faster

services, decrease in services costs and also management costs, decrease in number of clients’ reference to banks.
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