American Journal of Applied Sciences

Role of the Electronic Banking Services on the Profits of Jordanian Banks

Ahmad Zakaria Siam

DOI : 10.3844/ajassp.2006.1999.2004

American Journal of Applied Sciences

Volume 3, Issue 9

Pages 1999-2004


This study aims at examining the effects of electronic banking on bank’s profitability in Jordan. How banking sector finds itself before a new fact imposed by technology revolution and digits to change their work mechanisms from traditional means to electronic means and the challenges banks face as a result. Furthermore, this study investigates the reasons behinds providing electronic banking services through internet, their impact on banking services in general and banks profitability in particular. Risks and challenges involved are discussed Results and recommendations are included. Results revealed that electronic banking service has a negative effect on banks profitability on the short term. The importance of this study and the factors that make it unique is that, it discusses solely the topic of the effects of electronic banking on banks profitability, while most of other studies discuss the topic in general term. The findings of the study are the impact of electronic banking on banks profitability will be feature of the short run due to the capital investment by the banks on infrastructure and training but will be positive on the long run.


© 2006 Ahmad Zakaria Siam. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.