The Impact of E-Business Services on Bank Efficiency in Taiwan

Abstract

The determinant of bank efficiency has been widely investigated, yet few studies consider the possibility that effect of e-business service on bank efficiency. This study investigates the impact of bank efficiency on e-business outputs in Taiwan from 2008 to 2019. This result shows measured efficiency with e-business models compared to basic models, in that bank managers saved about 15.84% of costs to improve bank efficiency. Empirical findings indicate that bank efficiency with e-business is more prevalent than bank efficiency without e-business outputs, implying that e-business outputs play a crucial role in bank efficiency. The findings also show that e-payment services have brought positive effects to bank efficiency, and that mobile banking services increase the frequency of banking transactions performed by customers, leading to increased bank efficiency.