IMPACT OF TECHNOLOGY FACTORS ON THE EFFICIENCY OF OPERATIONS OF COMMERCIAL BANKS

Abstract

The purpose of this research is to investigate how technological factor profit ratio of commercial banks in Vietnam in industrial revolution 4.0 period by using  fixed effect, random effect. Return of equity ratio is a representative of banks’ profit which is dependent variable. Data of independent variables are collected from 23 Vietnamese banks during period of 11 years (2008-2018). The results show that application of technology in banking operation, application of technology for payment service, technological innovation, the ratio of equity to total asset, cost management, credit risk, scale of banks, inflation have relationship with profitability of Vietnamese banks. Besides, this research also gives some recommendations for Vietnamese banks with hope that these banks could improve technology efficiency in their operation.

Keywords: industrial revolution 4.0; operational efficiency; profitability; technology.