E-Banking and its Impact on Financial Performance in Nepalese Commercial Bank

Abstract

E-banking as the wave of the future, provides enormous benefits to consumers in terms of transactions, either through internet banking, mobile banking, ATM card or other electronic delivery channels. The main purpose of this research is to examine the effect of electronic banking on financial performance of commercial bank in Nepal. Both primary and secondary data were used for analysis. Secondary data were collected from banks annual reports and their website and primary data were collected through questionnaire. This study used descriptive and analytical research approach. Appropriate frequency tables were used, a coefficient correlation and multiple regression analysis was also used to explained the relationship between the variables and present the findings. The conclusion of this research is electronic channels (ATM card and Mobile banking) negatively and insignificant impact on financial performance of banks in term of ROA and ROE. Only internet banking had statistically positively and significant impact on profitability of banks in terms of ROA and ROE. And customer’s education levels their knowledge about the computer and internet, electronic problem, security problems, trust issue, customer ignorance and internet infrastructure in the country were identified as major challenges faced by the bank regarding the development of their online facilities.