Investigating the Effect of Digitalization in Financial Inclusion on the Financial Performance of Deposit Banks in Türkiye

Authors : Cihan Yılmaz, Hakan Yıldırım

Pages : 47-69

Doi:10.17233/sosyoekonomi.2024.03.04

View : 74 | Download : 79

Publication Date : 2024-07-30

Article Type : Research

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.
Keywords : Finansal Tabana Yayılma, Dijitalleşme, İnternet Bankacılığı, Kârlılık