The Impact of E- Banking on The Performance of Jordanian Banks

Electronic banking has become one of the most important and modern applications that has witnessed a substantial expansion during the last years. This study examines the impact of electronic banking on the Jordanian banks' performance. Empirical analysis has been conducted on a panel data of 15 Jordanian banks for the period 2000-2010. Accounting data were used to measure the banks' performance and regressed on relevant variables using OLS regression. The results show that electronic banking has a significant negative impact on banks' performance. Electronic banking has not improved the performance of these banks. Banks' customers in Jordan depend on traditional channels to carry out their banking operations. As a result, costs associated with adopting electronic banking are still higher than revenues from provision electronic services. Hence, banks should focus its work to promote the confidence of electronic banking services and encourage the customers to use this kind of services.