Online Banking Efficiency and Risk Evaluation with Principal Component Analysis

Online banking has always been important from different stakeholder perspectives.1 Improving the efficiency of Internet banking is now considered to be important. Banks hope that internet banking will help them maintain profitable growth by enabling them to automate work, reduce costs, and retain customers simultaneously.2 Internet banking may help reduce expenditure on ‘bricks and mortar,’ and reduce capital expenditures.3 Internet banking can give customers 24-hour access, and provide convenience for customers. Cost-effective use of the internet can attract many users to online banking services, but there has been little research examining the superiority of banks providing online banking services over those that do not. The role of online banking in leading to better decisions and creating more profit needs study.