E-Banking Impact on the Profit Margin of Banks in Iran

Development of ebanking has empirically modified the structure and characters of banks rsquo; performance, efficiency, risk and challenges which have also been articulately recognized based on the international best practices. ebanking brazenly accelerates and restructures financial transactions via enhancing technology and expanding the banking services in comparison with conventional banking. accordingly, online access to the banks rsquo; products, financial statements, payment services and even credit scoring has considerably improved bankscustomers relationships in the context of lending and borrowing practice, deposit composition, investment opportunities, trade finance options as well as account management diversification. the impact of recent ebanking developments is statistically evaluated for iran rsquo;s banking network via dynamic panel data approach. the findings highlight that the ratio of atms and electronic cards transactions to banks' assets negativelysignificantly influence the profitability due to higher substitution ratio with the other payment instruments and maintenance cost. the ratio of online branch transactions to the banks' assets negativelyinsignificantly affects the profitability owing to the rapid increase in the npls and loan/loss expenses which has consequently shrunk shared revenues over the past 10 years. swiftbranches have positivelysignificantly enhanced the banks internalsecured cash flow while contemporaneously improves fund efficiency, banks rsquo; services fees, and ultimately profit margin.