Do E-Business Services Enhance Bank Efficiency in Taiwan?

Abstract

This study investigates the impact of e-business services on bank efficiency in Taiwan from 2008 to 2019, using the Data Envelopment Analysis (DEA) technique concerning e-business activities as outputs or do not. Comparing two models, these findings show that efficiency scores with e-business output were significantly better than those without e-business outputs, implying that e-business outputs play a crucial role in evaluating bank efficiency. The findings 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.