The impact of e-banking on the profitability of Universal Banks in the Philippines

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories



Ramon V. Del Rosario College of Business



Thesis Adviser

Florenz C. Tugas

Defense Panel Member

Alloysius Joshua S. Paril

Alger C. Tang

Aeson Luiz C. Dela Cruz


The many advances of technology led to the eventual prominence of e-banking in the banking industry. Being an example of technology, it is expected that banking customers are provided faster, more secure and more accessible transactions. This should increase the perceived value of the products and services provided by the bank. Therefore the question of whether this increase of value is reflected onto the banks profit comes into play. This study sought to answer whether are there significant impact of e-banking on the profitability of universal banks in the Philippines.

To answer this problem statement, the researchers found it necessary to look at the impact of the occurrence of e-banking in two perspectives its direct impact and indirect impact. To statistically provide an answer for these perspectives panel regression and structural equation modeling was used for a data population of banks in the tenure of 2004 to 2013.

The statistical results show that the occurrence of e-banking does not have any significant effect on the profitability of universal banks in the Philippines. This is due to the occurrence of the service throughout the industry. But, it was found that e-banking has significant indirect effect to the size of the bank and the expense management of the bank which ultimately leads to an increase in profitability.

With the statistical results of this study shows, the occurrence of e-banking alone does not ensure an increase of profitability on any bank. That is why, careful and creative planning, management and innovation is needed so as to provide a sustainable competitive advantage for these banks. Innovators and bank managers, primarily, should make the opportunities that the occurrence of e-banking opens to business power which leads to profitability.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

vi, 128 leaves ; 28 cm. + 1 computer optical disc.


Electronic Banking--Philippines

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