LITERATURE REVIEWOnline banking uses internet communication pathway to facilitate banking activities. Most common uses of online banking relate to fund transfer, ability to use the online medium to pay bills or mortgages, 24 hours access to savings or checking accounts to view balance and so forth [5]. Not only internet banking provides convenience to customers, but banks are also benefited through lower employee requirement and lower cost associated with less physical branches translating into an overall reduced cost of operation[6]. Numerous authors have used different performance metrics to identify the impact of internet banking on bank’s performances, with ROE (return on equity) and ROA (return on asset) being the most common[7]-[10]. While a Impact of Online Banking Adoption on Bank’s Profitability: Evidence from BangladeshSharul Islam, Mohammad Rokibul Kabir,Rabiul Hossain Dovash, Safa-E-Nafee,and Sovan Saha positive relationship is witnessed between introduction of internet banking and banks performance metrics[7], [9]-[11], a time lag was observed suggesting that the impact of internet banking on the bank's performance cannot be judged using a single year study , instead it requires some duration of time before the benefit reflects on the key metrics[7]. Similarly, previous researchers have reported the positive impact of internet banking on firm's profitability, operating efficiency and financing activities suggesting that banks that have adopted internet banking have better performance indicator with lower cost[9]. Such finding was complemented with the work of [12]where it was reported that the adoption of internet banking reduces the overhead expenses of the banks and the cost reduction results increase in bank’s profitability. Reference [10]in their study intend to confirm whether banks that have adopted internet banking also has a positive relationship on the number of debit or credit cards issued as well as the number of ATMs installed by the banks. They concluded with a positive relationship suggesting that customers prefer convenience and adoption of internet banking can have a positive impact on ROA. Demographic profile plays a vital role in terms of intention to adopt online banking suggesting that countries with more youth and well-educated population embraced internet banking. In such countries, adopting internet banking was linked to more profitability in comparison to traditional brick and mortar banks[13]. In contrary to the earlier work, [14] wanted to test whether internet adoption has an adverse effect on profitability at the beginning of the adoption year, and the positive impact on the deposit and credit branch. It was found out that embracing internet banking usually cut down the bank’s profitability even though it improves deposit and loan growth. The primary reason was that the market has its limit or ability, as in developing countries it is challenging to lure customers into adopting internet banking due to lower educ
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