THE NEXUS BETWEEN ONLINE BANKING AND FINANCIAL PERFORMANCE IN SAUDI ARABIA BANKS

Abstract

Since the 1980s, the financial sector has known significant transformation, due to technological innovation and the massive use of the web, mobiles and online services, which were used during the Corona period. This investigation examines the effect of E-banking service on banks performance in Saudi Arabia. To accomplish this purpose, we applied a regression estimation technique appropriate for panel data analysis combined with the Hausman test (1978). We investigate several control and bank-specific variables that affect return on assets (ROA) and return on equity (ROE). The study is based on a sample of 37 commercial banks for the period 2012–2023. The results validate all most of our hypotheses, which confirm the positive relationship between digitalization specifically E-banking and the performance indicators of banks in Saudi Arabia.