The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Internet banking has turned out to be the nucleus issue of various studies all over the world. In India, there has been a literature gap on the issue constantly. This paper describes the current state of Internet banking in India and discusses its implications for the Indian banking industry. Empirical analyses have been conducted from a panel data of 88 banks for the period 1998-2005 to see the differences between the profiles of Internet and non-Internet banks and the impact of Internet banking upon bank's performance. The univariate analysis indicates several significant differences in the profile of banks that offer Internet banking and banks that do not. Broadly speaking, Internet banks are larger banks but have lesser equity cushions as compared to non-Internet banks. Internet banks rely heavily on non-interest income and also on deposits for funding than non-Internet banks do. Internet banks have better accounting efficiency ratios and higher returns on equity and returns on assets than non-Internet banks. However, the multiple regression results reveal that the profitability and offering of Internet banking does not have any significant association. Internet banking has gained worldwide acceptance as a new delivery channel for performing various banking transactions. It provides the opportunity to the customers to conduct banking transactions at their convenience. In fact, Internet banking refers to the use of Internet as a delivery channel for the banking services, including traditional services, such as opening an account or transferring funds among different accounts, as well as new banking services, such as electronic bill presentment and payment, which allow the customers to pay and receive the bills on a bank's website. There are two ways to offer Internet banking. First, an existing bank with physical offices can establish a website and offer Internet banking in addition to its traditional delivery channels. second, a bank may be established as a "branchless," "Internet-only," or "virtual" bank. Internet banking model offers advantages for both banks and customers. The Internet provides the banks with the ability to deliver products and services to customers at a cost that is lower than any existing mode of delivery. A survey conducted in US shows that of all the modes of transactions, Internet banking is the cheapest for the banks, as shown in Table 1. Customers benefit not only from the increased convenience but also from higher interest rates resulting from cost savings by the banks. The ability to pay higher interest rate with a much wider potential of customers, allows these banks to grow faster than traditional banks. Practically, the extent to which these banks distribute these benefits is not yet clear. It is therefore important for bankers, bank supervisors and policymakers to understand how Internet banking affects the performance of banks. Despite this attention, there is a richness of information on the nature and scope of Internet banking, but there is a scarcity of evidence about the impact of Internet banking activities among banks that have adopted it compared to those that have not done so. Our purpose is to fill significant gaps on this issue, especially with respect to the Indian banking markets, where no rigorous attempts have been undertaken to understand this aspect of the banking business. The evidence reveals no significant association between adoption of Internet banking by banks and their profitability. The influence of internet-activities of banks on their performance continues to be insignificant irrespective of what is used as performance variable following banking literature and industry norms for bank performance definitions. REVIEW OF EXISTING LITERATURE A very few attempts have been made to investigate the performance of banks that offer Internet banking. Table 2 summarizes the previous research done on the performance of Internet banks. … <s> BIB001 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Purpose – First, to investigate the relationship between customer perception of service quality and bank financial performance in the new context of the automated banking environment in Australia. Second, to test for the mediating role of customer satisfaction in that relationship.Design/methodology/approach – Reviews a very large literature and numerous previous empirical investigations of service quality. Defines automated service quality. Proposes a mediated model linking service quality to banks' financial performance through customer satisfaction in the context of the automated retail banking, and tests it by structural equation modelling (Amos 5).Findings – Customer satisfaction is confirmed as a mediator in the relationship between automated service quality and financial performance.Research limitations/implications – Further research is indicated, to validate the relevance of the findings across different countries.Practical implications – The proposed model can guide the formulation of marketing ... <s> BIB002 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> To date, Internet banks worldwide have underperformed newly chartered traditional banks mainly because their higher overhead costs. This paper analyses whether this is a temporary phenomenon and whether Internet banks may generate scale economies in excess of those available to traditional banks and/or they (and their customers) may accumulate experience with this new business model, which may allow them to perform as well or even better than their peers, the traditional banks. To this end, we have followed the same analytical framework and methodology used by DeYoung (2001, 2002, forthcoming) for Internet banks in the United States although the limitations in the availability of data as well as the existence of different regulatory frameworks and market conditions, particularly in the retail segment, in the fifteen European Union countries have required some modifications to such methodology. The empirical analysis confirms that Internet banks show technologically based scale economies, while no conclusive evidence exists of technology based learning economies. As Internet banks get larger, the profitability gap with traditional banks shrinks. To the extent that Internet banks are struggling to prove themselves a viable business model, European authorities may encourage a larger number of consumers to use this delivery channel, by tackling consumers? security concerns. This would allow Internet banks to capture more of the potential scale efficiencies implied in our estimations. <s> BIB003 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Internet web sites have become an important alternative distribution channel for most banking institutions. However, we still know little about the impact of this delivery channel on bank performance. We observe 424 community banks among the first wave of US banks to adopt transactional banking web sites in the late-1990s, and compare the change in their 1999-2001 financial performance to that of 5175 branching-only community banks. Whereas today virtually all viable community banking franchises offer he Internet banking channel, studying this earlier time period allows us to make clean comparisons between subsamples of "brick-and-mortar" and "click-and-mortar" community banks. We find that Internet adoption improved community bank profitability, chiefly through increased revenues from deposit service charges. Internet adoption was also associated with movements of deposits from checking accounts to money market deposit accounts, increased use of brokered deposits, and higher average wage rates for bank employees. We find little evidence of changes in loan portfolio mix. Our findings suggest that these initial click-and-mortar banks (and their customers) used the Internet channel as a complement to, rather than a substitute for, physical branches. <s> BIB004 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Purpose - Existing empirical evidence indicates internet banks worldwide have underperformed newly chartered traditional banks mainly because of their higher overhead costs. The purpose of this paper is to examine the impact of internet banking services on credit union activity. Design/methodology/approach - The impact of internet banking services on credit union over the period 1999-2006 was studied and regression equations were estimated for the growth in assets, operating expenses and return on assets as functions of portfolio characteristics, economic conditions and a dummy variable indicating if the credit union has adopted internet banking services. Findings - The operating costs of credit unions providing web access were found to be significantly higher than those credit unions which do not have any web account offerings. There is increased growth in assets for the credit unions which have worldwide web accounts although this relationship is statistically significant in only three of the eight years studied. The return on assets show that the credit unions with web accounts have similar average profitability to those credit unions that do not provide the facility of internet access to their customers. Research limitations/implications - Consideration could be given to running the regressions with the number of years the web site has been in place instead of just a dummy variable and putting in common bond dummy variables. Some common bonds are so narrow it may not pay to have internet services. Practical implications - Even though there are costs associated with providing internet services, the retention of profitability and the evidence of potentially higher asset growth rates suggest the importance of internet banking and the trend of internet banking adoption is expected to continue in the near future in the credit union industry. Originality/value - This is a pioneering study on the effect of internet banking services on the costs, growth and profitability of Credit Unions in the USA. <s> BIB005 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Purpose – The purpose of this paper is to examine the impact of online banking intensity on the financial performance of community banks.Design/methodology/approach – This study estimates online banking intensity and bank performance indices using a combination of primary and secondary data. Online banking intensity is specified as a latent construct and estimated using web feature data collected from bank websites. An empirical profit function of a nonstandard Fourier flexible form is estimated using bank's financial data to derive a theoretically consistent performance measure. The actual impact of online banking on performance is measured by regressing the profit efficiency index against a number of correlates including online banking intensity measure.Findings – Study results indicate that the increasing use of internet as an additional channel of marketing banking services has significantly improved the financial performance of community banks.Practical implications – These results show that online b... <s> BIB006 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> The paper describes the current state of Internet banking in India and discusses its implications for the Indian banking industry. Particularly, it seeks to examine the impact of Internet banking on banks' performance and risk. Using information drawn from the survey of 85 scheduled commercial bank's websites, during the period of June 2007, the results show that nearly 57 percent of the Indian commercial banks are providing transactional Internet banking services. The univariate analysis indicates that Internet banks are larger banks and have better operating efficiency ratios and profitability as compared to non-Internet banks. Internet banks rely more heavily on core deposits for funding than non-Internet banks do. However, the multiple regression results reveal that the profitability and offering of Internet banking does not have any significant association, on the other hand, Internet banking has a significant and negative association with risk profile of the banks. <s> BIB007 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> This paper presents a hybrid approach to conducting performance measurements for Internet banking by using data envelopment analysis (DEA) and principal components analysis (PCA). For each bank, DEA is applied to compute an aggregated efficiency score based on outputs, such as web metrics and revenue; and inputs, such as equipment, operation cost and employees. The 45 combinations of DEA efficiencies of the studied banks are calculated, and used as a ranking mechanism. PCA is used to apply relative efficiencies among the banks, and to classify them into different groups in terms of operational orientations, i.e., Internet banking and cost efficiency focused orientations. Identification of operational fitness and business orientation of each firm, in this way, will yield insights into understanding the weaknesses and strengths of banks, which are considering moving into Internet banking. <s> BIB008 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Very little is known about how adopting Internet activities impact traditional banks. By tracing the experience of Italian commercial banks, we provide evidence and implications for banks’ use of new Internet technology and innovative banking products as they relate to performance. Using different definitions for what is considered as Internet activity and by examining alternative proxies for bank return and risk, we find a significant link between offerings of Internet banking products and bank performance. Although this link is significantly positive for bank returns, we find a negative, marginally significant, association between the adoption of Internet activities and bank risk. <s> BIB009 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Abstract Data envelopment analysis (DEA) is an ideal tool to assess a bank branch's operating and profit efficiency. This study went a step further to also explore the impact of IT-based retail banking services on branch efficiency, and found that IT-based transactions at the branch level have a significant impact on profit efficiency, and therefore have a significant role to play in profit maximization. Improving bank branch technology to best support service delivery is also a practical way to achieve greater efficiency, which in turn, contributes to a commercial bank's overall profitability. <s> BIB010 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> This paper seeks to examine the impact of internet banking on banks' performance and also whether, among banks offering internet banking, those that have offered it for a relatively long time outperformed those that only recently began to offer it. Using the data on financial performance of 82 scheduled commercial banks, during the period of 1998-2007, the univariate analysis indicates that experienced internet banks are larger banks and have better operating efficiency ratios and rely less on traditional source of financing in comparison to inexperienced internet banks as well as non-internet banks. In almost all other variables, there existed no statistically significant difference in the performance of experienced and inexperienced internet banks. The multiple regression results also reveal that the profitability and experience in offering of internet banking does not have any significant association. Hence, in the Indian banking context, experience in offering internet banking does not have any impact on banks' performance. <s> BIB011 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Purpose – Online banking has attracted a great deal of attention from various bank stakeholders such as bankers, financial service participants, and regulators. The purpose of this paper is to analyze the online banking service performance of giant US and UK banks. Risk analysis is also conducted.Design/methodology/approach – This paper connects the principal component analysis (PCA) method with the data envelopment analysis (DEA) method to estimate the online banking performance. Data are collected from 2007 annual reports of giant banks in the USA and the UK including both financial and non‐financial variables.Findings – Most giant banks are performing well based on DEA analysis. Employees turn out to be a key variable that contribute most to banks' revenue. Different DEA models can be classified into cost‐ and online‐oriented models, which is consistent with existing work based on data from other nations.Originality/value – This paper presents a unique demonstration of using PCA and DEA for evaluation ... <s> BIB012 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Holden and El-Bannany (2004) showed that Automated Teller Machines (ATMs) play an important role in increasing Return On Asset (ROA) in their analysis of banks in the United Kingdom. The present article investigates whether this conclusion also applies to Japanese banks. We found that ATMs do not have any influence on the ROA of Japanese banks; however, it was revealed that ATMs had positive effects on fees and commissions (income) from 2000 to 2003, and positive effects of ATMs on interest income were also seen recently. We conclude that in Japan, ATMs do not influence ROA, which includes the overall profits of bank transactions, but do contribute to particular businesses in that they can make the most of their abilities. <s> BIB013 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Automated banking applications offer wide benefits to customers and banks and it is no longer a good to have but an "essential service for survival" in this era of globalization. Automation of banking services such as internet banking, ATM banking, telephone banking or mobile banking enable bank customers to access accounts and general information on bank products and services through a personal computer, mobile phones or other intelligent devices. The use of information technology in providing banking services is becoming increasingly important day-by-day because it reduces banks' operating costs, delivers fast and accurate records and improves banks' profitability. This research categorizes the banks operating in Bangladesh into three groups based on the extent to which they are offering automated services -- fully automated, moderately automated, and not automated and investigates the impact of automation of banking services on improving financial performance of banks doing business in Bangladesh. <s> BIB014 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> More and more enterprises are taking advantage of self-service technologies (SSTs) in their customer-related operating activities, especially service firms. Although research on SSTs is prevalent, few studies have examined the impact of SSTs on firm financial performance. Given the growing importance of SSTs in the service industries in general and in the banking industry in particular, we therefore empirically examined the impacts of ATMs, one of the most widely accepted SSTs, on bank financial performance. Contrary to the existing literature, our results show ATMs have a positive relationship with profitability. However, we find no association between ATMs and growth performance. <s> BIB015 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> This paper examines how the internet affects the financial performance of Greek banks. Using econometric models, we examine the degree to which internet has contributed to an improvement in their profitability. Our findings suggest that the adoption of internet as a banking delivery channel has no effect on the profitability of banks in terms of the ROA and the ROE financial ratios. We show that there is a reduction in the net interest margin ratio, implying a decrease in the profits gained from the interest on loans after the deduction of the interest paid to lenders. In addition, we find that there is a decrease in the net interest revenue over average assets. Moreover, our findings suggest a reduction in the operational expenses for the banks adopting internet banking. Finally, we report that assets, net loans over total assets, and equities over total assets are unaffected by the internet banking. These results are strongly recommended to managers dealing with internet technology and banking adoption. <s> BIB016 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Abstract The modernization of the banking sector has been a defining trend in new EU member state economies over the last decade. Financial innovations in particular have provided banks with the necessary tools to obtain competitive advantages. In this context, the aim of our research is to analyze the way in which the financial innovation represented by Internet banking services can contribute to the enhancement of the overall efficiency of Romanian banks. We apply DEA to compute the aggregate efficiency score for each of the 24 banks in our sample and, in addition, we utilize PCA to classify the banks into different operational strategies groups based on their relative efficiency scores. The results show that there are very few banks in our sample that have utilized Internet banking services in their production process to increase their level of efficiency and thus the research proposes a series of solutions and recommendations. <s> BIB017 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> This paper investigates the effect of automated teller machines (ATMs), information technology (IT) investments and other determinants on the efficiency and profitability of Greek commercial banks. Following the two-step procedure: 1) efficiency is derived via the non-parametric data envelopment analysis (DEA) technique under the variable returns to scale (VRS) assumption; 2) efficiency scores are linked to a series of determinants of bank efficiency using a Tobit regression model. We find that profitability (ROAA and ROAE), ATMs and capitalisation show a negative impact on the efficiency of Greek banks. We also report that banks' size, capitalisation, IT investments and ATMs do not have any effect on the ROAA or the ROAE but they have a positive effect on the fees and commissions. However, we find that ATMs have a negative effect on the net interest income. <s> BIB018 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> Using data on Indian states during 2001-2012, the paper analyses the impact of mobile telephony on economic growth. Using advanced panel data techniques, the evidence suggests that mobile telephony exerts a positive and statistically significant impact on growth. The magnitude of the response differs across states with high and low mobile penetration. Additionally, mobile telephony is observed to exert a significant impact on financial inclusion and especially on the loan behavior. Employs data on Indian states for 2001-2012 to examine the impact of mobile telephony on economic growth and the role of financial inclusion.Mobile telephony exerts a positive and statistically significant impact on magnitude of the response differs across states with high and low mobile penetration.There is evidence of network increases in mobile penetration beyond a threshold exerts a positive impact on growthMobile telephony is observed to exert a significant impact on financial inclusion and especially on loan behavior. <s> BIB019 </s> The Impact of Digital Financial Services on Firm's Performance: a Literature Review <s> Digital Financial Services <s> This paper examines the growing importance of digital-based financial inclusion as a form of organising development interventions through networks of state institutions, international development organisations, philanthropic investment and fintech companies. The fintech–philanthropy–development complex generates digital ecosystems that map, expand and monetise digital footprints. Its ‘know thy (irrational) customer’ vision combines behavioural economics with predictive algorithms to accelerate access to, and monitor engagement with, finance. The digital revolution adds new layers to the material cultures of financial(ised) inclusion, offering the state new ways of expanding the inclusion of the ‘legible’, and global finance new forms of ‘profiling’ poor households into generators of financial assets. <s> BIB020
DFS are the broad range of financial services accessed and delivered through digital channels, including payments, credit, savings, remittances, insurance and financial information. The term "digital channels" refers to the internet, mobile phones (both smartphones and digital feature phones), ATMs, POS terminals, NFC-enabled devices, chips, electronically enabled cards, biometric devices, tablets, phablets and any other digital system (AFI, 2016). DFS have significant potential to expand the delivery of basic financial services via affordable, convenient and secure environment to the public at large (particularly the poor) through innovative technologies like mobile-phone-enabled solutions, electronic money models, and digital payment platforms. Financial Institutions (Banks, Microfinance institutions) and non-Financial firms (mobile network operators) and third party providers (agent network managers, payment aggregators, and others) are leveraging digital channels to offer basic financial services at greater convenience, scale and lower cost than traditional banking allow. The digital revolution adds new layers to the material cultures of financial inclusion, offering the state new ways of expanding the inclusion of the 'legible', and global finance new forms of 'profiling' poor households into generators of financial assets BIB020 . Mobile telephony (DFS) exerts a significant and non-negligible impact on economic growth BIB019 .The extensive use of digital finance could boost annual GDP of all emerging economies by $3.7 trillion by 2025 (6% increase). Approximately 65% of this increase would come from raised productivity of financial and non-financial businesses and governments as a result of digital pay-ments. This additional GDP could lead to the creation of up to 95 million jobs across all sectors  . As DFS include many digital channels (improving day to day).We noticed that in our identified articles (2006 to 2016) researchers mainly focus on one particular channel at a point in time to execute their research (see Table1) . Most of the studies used internet banking (34%) as DFS channel followed by automated/internet/self-service technology (32%). BIB001 ,  ,  ) BIB007 ),  , BIB011 )  ,  ) BIB017 , BIB005 , BIB003  3 mobile banking  4 online banking BIB012 , BIB006 , BIB008 5 cash less banking (M. Kamboh and E.J.  6 automation/internet/  ,  , BIB016 ) self-service technology BIB009 , BIB014 , BIB002 ) , BIB010 BIB004 ) BIB015 ,  ,  7 ATM BIB018 , BIB013 