Abstract
This study investigates the impact of digitalisation in financial inclusion on the financial performance of deposit banks operating in Türkiye between 2010 and 2021. The study's dependent variables are the financial performance indicators, namely the return on assets (ROA) and return on equity (ROE). The number of ATMs and data related to Internet banking are explanatory variables, while asset size, equity ratio, and economic growth are control variables. The analyses conducted using the Two-Step System GMM method reveal that the lagged values of profitability indicators, the number of internet banking customers, financial transactions made through internet banking, equity ratio, asset size, and economic growth have a positive effect on profitability, while the number of ATMs has a negative impact.
Reference114 articles.
1. Abuk-Duygulu, A. & M. Özyiğit (2022), “Financial Inclusion and Income Inequality: An Evaluation on Cause-and-Effect Relationship”, Bulletin of Economic Theory and Analysis, 7(2), 297-325.
2. Ahamed, M.M. & S.K. Mallick (2019), “Is Financial Inclusion Good for Bank Stability? International Evidence”, Journal of Economic Behavior & Organization, 157, 403-427.
3. Akhisar, İ. et al. (2015), “The Effects of Innovations on Bank Performance: The Case of Electronic Banking Services”, Procedia - Social and Behavioral Sciences, 195, 369-375.
4. Akın, F. (2020), “Dijital Dönüşümün Bankacılık Sektörü Üzerindeki Etkileri”, Balkan ve Yakın Doğu Sosyal Bilimler Dergisi, 6 (2), 15-27.
5. Alam, S.S. et al. (2007), “Development and Prospects of Internet Banking Bangladesh”, Competitive Review: An International Business Journal, 17(1/2), 56-66.