The Role of Digitalization in the Financial Performance of the Participation Banking Sector
Chapter from the book: Yücel, R. & Ayyıldız, Y. & Er, H. (eds.) 2023. Innovations that Digitalization Brings to the Finance Sector.

Kayhan Ahmetoğulları
Bursa Uludağ University

Synopsis

This study aims to examine how advances in the digital banking sector are reflected on banking financial performance. The participation banking sector, which has recently become more profitable and popular, is targeted within the banking sector. Data were obtained from the Participation Banks Association of Turkey, the Banking Regulation and Supervision Agency, and the Central Bank. The research covers a total period of 14 periods with quarters between 2020-2023. The number of mobile banking customers, mobile banking transaction volume, number of internet banking customers, internet banking transaction volume are taken as independent variables of digital banking. As a control variable in the research, inflation data are organized quarterly. Return on assets and return on equity variables, which are among the most important profitability ratios of the banking sector, are considered as dependent variables. Multiple linear regression analysis was performed with four different models. According to the analysis results, the number of mobile banking customers and mobile banking transaction volume have a significant and positive effect on return on equity and return on assets when the inflation variable is controlled. While internet banking transaction volume has a significant effect on return on assets and return on equity, the number of internet banking customers has no significant effect.

How to cite this book

Ahmetoğulları, K. (2023). The Role of Digitalization in the Financial Performance of the Participation Banking Sector. In: Yücel, R. & Ayyıldız, Y. & Er, H. (eds.), Innovations that Digitalization Brings to the Finance Sector. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub298.c1469

License

Published

October 27, 2023

DOI