A Study of the Impact of Banking Self-Service Technologies Extension on Return on Equity
AUTHORS
Amir Abedini Koshksaray,Department of Business Management, Qazvin branch, Islamic Azad University, Qazvin, Iran
Marzieh Soleimani*,Faculty of Management, University of Tehran, Tehran, Iran
Somayeh Bahoush Keivani,Department of Economic Science, Payame Noor University, Karaj, Iran
Mehrnoush Karkhaneh,Department of Business Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran
Mohammad Safary Ahmadsaraei*,Department of Industrial Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran
ABSTRACT
This research aims to examine the impact of the banks' Self-Service Technology (SST) extension on Return on Equity (ROE) from 2011 to 2020. For this purpose, among 16 banks, 11 were selected based on their relevant and accessible data. Three indicators are used to measure the extent of SST among selected banks, including the percentage growth of sales terminal transactions, the percentage growth of branch terminal transactions, and the percentage of Automated Teller Machines (ATM) transactions. The hypotheses were tested using a composite data model (data panel). Experimental evidence of the study shows that the expansion of Point-of-Sale (POS) systems and ATMs devices leads to an increase in banks' ROE. Still, PIN pad or PIN entry device development is not significantly related to the rise in banks' ROE. This research extends the literature on SST and provides practical information for banks investing in SST. In this study, we examine the effect of various bank SSTs on the banks' profitability. We first review the literature on SSTs in banking, and then we continue to review the theoretical backgrounds and set our hypotheses. Next, we present our model, variables, and analysis. Then we conclude our paper with the research findings, implications, and limitations.
KEYWORDS
Self-service technology, Financial performance, ROE, Banking industry
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