The Effect of Implementing Core Banking Services on Profitability: Case Study of All Branches of a Private Bank in Mashhad

Document Type: Case Study


1 Department of Accounting, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran

2 Department of Management, Economics and Accounting, Payame Noor University, PO BOX 19395-3697, Tehran, Iran.

3 Department of Accounting, Torbate Jam Branch, Islamic Azad University, Torbate Jam, Iran


Recently, the growth of information technology and increasing competition among banks has considerably affected attracting customers. Banking industry has made great changes to transform into the core banking. The present study aims to assess the effect of the implementation of core banking services on profitability. These services, as different branches of electronic banking, are consisting of internet banking, mobile banking, telephone banking, point of sale (POS), ATM, and electronic money which are all tested in the current study. In order to test research hypotheses and the existing relationship between variables, needed data has been collected and analyzed through the application of stepwise regression model. The achieved findings indicate a significant relationship between the application of internet banking and ATM and the variable of profitability, while there is no significant relationship between the application of telephone banking, mobile banking, POS, and electronic money and profitability.


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