A Measurement Research On The Contribution Ratio Of Electronic Banking On Bank Performance

As a product of information technology development in the1990s, the electronicbanking of China experienced more than20years of development from start to mature,which has not only radically changed people’s way of life consumption, but alsobecome a crucial step for traditional commercial bank to realize operationaltransformation, seek new profit models and maintain the competitiveness. Due to thehigh attention of commercial banks in China, the electronic banking has achievedrapid development, playing an increasingly important role on the whole bankingindustry. In order to measure the contribution ratio of electronic banking on bankperformance, this paper incorporated electronic banking into the performanceevaluation system of the commercial bank.After reviewing the efficiency theory of the commercial bank and the principlesof DEA model, the influence of electronic banking on commercial bank performancewas analyzed mainly from four aspects: asset size, customer resources, technologylevel and innovation ability and an electronic banking-based bank performanceevaluation system was constructed in this paper. In view of the preciseness of themodel and the availability and comparability of data, this paper selected Bank ofChina, Agricultural Bank of China, Industrial and Commercial Bank of China, ChinaConstruction Bank, China Minsheng Banking Corp. Ltd, Industrial Bank, ChinaMerchants Bank and China Citic Bank as the samples within a sample period from2006to2012. In the selection of variables, this paper selected total bank assets astraditional input index and electronic banking sum and customer quantity as theelectronic banking input indexes while pretax profits of the bank was regarded asoutput index. The CCR model with constant returns to scale was applied and DEAP2.1software was used to measure the technical efficiency of sample banks during thesample period, so as to compute and analyze the input improvement value of theindexes of electronic banking.Through empirical analysis we can see that the contribution ratio of electronicbanking on the overall bank performance has achieved year-on-year growth; thetechnical efficiency of joint-stock commercial banks is averagely higher than that ofstate-owned commercial banks; except for China Citic Bank, Industrial andCommercial Bank of China and China Minsheng Banking Corp. Ltd whose electronicbanking input are effective or tend to be effective, the contribution of that of other simple banks are not evident. See from the input of electronic banking, both electronicbanking trading volume and customer quantity have achieved redundancy to somedegree because of the fierce bank competition, blind expansion of electronic bankingwhich led to inefficient business operation.Specific to the unreasonable input of resources, an overall thinking of enhancingthe contribution ratio of electronic banking on bank performance was proposed in thispaper: timely adjusting the input resources of electronic banking for the purpose ofeffective operation, avoiding blind expansion based on the principle of optimal scale,improving the quality of electronic banking with a focus on user experience andinnovating electronic banking products and services through the carrier of informationtechnology. This paper provided a new thinking for commercial banks to improveperformance evaluation system, which present reference significance for the furtherdevelopment of electronic banking in china.