Internet Banking

• Published in: Journal of financial services research Vol. 22; no. 1; pp. 95 - 117
• Main Authors: Nolle, Daniel, Lang, William, Furst, Karen
• Format: Journal Article
• Language: English
• Published: Dordrecht Springer 01.08.2002; Springer Nature B.V
• Series: Journal of Financial Services Research
• Subjects: Bank examinations; Bank examiners; Bank holding companies; Bank ratings; Banking; Banking industry; Banks; de novo banks.; Efficiency; Electronic banking; Electronic commerce; Finance; Financial services; Internet; Internet banking; National banks; Operating revenue; Profitability; Questionnaires; Regression analysis; Statistical analysis; Websites; United States > US
• ISSN: 0920-8550; 1573-0735
• DOI: 10.1023/A:1016012703620

Multivariate logistic regressions are used to identify factors affecting adoption of Internet banking. These factors include membership in a bank holding company, an urban location and relatively higher premises and other fixed expenses to net operating revenue, higher noninterest income and greater accounting cost efficiency than non-Internet banks. More profitable banks were more likely to adopt Internet banking after Quarter 2, 1998, but more profitable institutions were less likely to be among the first movers in adopting Internet banking. Among banks with assets over $100 million, institutions with transactional Internet banking were generally more profitable and tended to rely less heavily on traditional banking activities. For banks with less than $100 million in assets, there was no statistical difference in profitability among mature Internet and non-Internet banks, but de novo banks were significantly less profitable than non-Internet de novos.