IT-based banking services: Evaluating operating and profit efficiency at bank branches

摘要

Data envelopment analysis (DEA) is an ideal tool to assess a bank branch's operating and profit efficiency. This study went a step further to also explore the impact of IT-based retail banking services on branch efficiency, and found that IT-based transactions at the branch level have a significant impact on profit efficiency, and therefore have a significant role to play in profit maximization. Improving bank branch technology to best support service delivery is also a practical way to achieve greater efficiency, which in turn, contributes to a commercial bank's overall profitability.