Title: Mobile financial services as a determinant of financial performances of commercial banks in Bangladesh

Authors: Shahedul Alam Khan; Md. Hafizur Rahman Khan

Addresses: Department of Business Administration, Leading University, Ragibnagar, Kamal Bazar, Sylhet, 3112, Bangladesh ' Department of Business Administration, Leading University, Ragibnagar, Kamal Bazar, Sylhet, 3112, Bangladesh

Abstract: Mobile financial services are financial services offered through mobile devices. This study ascertained whether mobile financial services make any significant differentiation in the financial performance of commercial banks in Bangladesh. This study was conducted on 29 commercial banks of Bangladesh with financial data from 2016, 2017 and 2018 fiscal years. To test the hypotheses, the independent sample t-test was used. This study concluded that the interest expense to interest income ratios, investment income to investment assets ratio, net interest margin, liquid assets as opposed to loan return on assets, return on earning assets, and return on equity were significantly better in banks offering mobile financial services. However, net profit margin, interest yields, loan (gross) to total deposit ratio of banks did not significantly contrast between banks with and without mobile financial services. Banks with mobile financial services significantly improve efficiency, liquidity, and profitability-based performance when compared with banks without similar services.

Keywords: e-banking; electronic banking; automation; financial performance; profitability; liquidity; efficiency; mobile banking; Bangladesh; commercial bank.

DOI: 10.1504/IJEBANK.2020.114764

International Journal of Electronic Banking, 2020 Vol.2 No.4, pp.283 - 294

Received: 02 Mar 2020
Accepted: 18 Jul 2020

Published online: 22 Apr 2021 *

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