The Effect of E-Money on the Non-Financial Performance of Banks: Case Study – Bank Mellat of Iran

Abstract

This study is to explore the effect of the various aspects of e-money on the non-financial performance of banks. The population included all clients of Bank Mellat in the capital of Tehran, who use e-money services. A random sample of 404 of the clients was selected. Further, to collect data, the researchers developed a questionnaire with a Cronbach's Alpha of 0.891, which was validated by university lecturers and experts in banking and structural analysis. In order to analyze the problem and test the conceptual model of the study, factor analyses of first and second ranks, as well as path analysis were utilized. Throughout the research process, e-money was categorized into card-based and network-based types, and the non-financial performance of banks was measured in three indices of customer satisfaction, diversity of services offered by the banks, and the quality of those services. Findings suggest that e-money affects the non-financial performance of banks and its sub-factors, where the effect is more conspicuous on customer satisfaction and quality of services, compared to service diversity.