Analysis of internet banking efficiency in Turkey

The most important building blocks of the financial sector are banks. With the development of technology, there are changes in banking as well as in every sector. Internet has become an indispensable position in banking as it is in every field. Banking has adapted to the requirements of the times for centuries. Every time it caught up with technology. In this context, internet effects are being discussed intensively today. No branch banking has become one of the most popular topics with the influence of internet and mobile banking. Branches that are indispensable in traditional banking are shown as the biggest competitor digital channels. Within the scope of the study, internet banking which is most used from digital channels has been examined according to years. The years interval is between 2007-2016. Data envelopment analysis is the method used for examination. The most effective years were determined as the result of inputs and outputs determined for this method. In addition to internet banking, an efficiency analysis has also been conducted for deposit banks. The same method was used in this analysis. There is also a case study in the study. Significant findings were found after the work done. Detection of the number of users of internet banking from internet users is the first finding. Looking at the efficiency, 2013 and 2016 appear to be effective years for deposit banks. 2007, 2009 and 2013 appear to be effective when an activity analysis is conducted for internet banking. While the effectiveness of deposit banking decreased during times of crisis, the efficiency of internet banking system did not fall in crises. In other words, banks that are facing internet banking in times of crisis can overcome crises cheaply. This is related to the dynamics of the internet banking system. In order to increase system efficiency, it is necessary to increase the number of transactions, not the number of customers. This demonstrates the necessity of policies for transaction processing rather than customer acquisition. The increasing popularity and transaction volume of internet banking has lost its momentum in recent years. This is why it is referred to as mobile banking.