Evaluate The Impact Of Contemporary Information Systems And The Internet On Improving Banking Performance

Akram Jalal Karim, Allam M Hamdan


This paper examines the affects of information technology (IT) on the Jordanian banking industry for the period of 2003-2007. The research examine the level of using IT by 15 Jordanian Banks for a period of five years, then explore the impression on improving the performance of two forms of matrix. The first is matrix of financial performance which comprises Market Value-Added (MVA), Return on Investment (ROI) and Earning per Share (EPR) and the second is matrix of operational performance, which includes the Net Profit Margin (NPM), Operating Return on Assets (ORA) and Profitability of Employee (PE). Utilizing IT by Jordanian banks will be measured by testing the level of investment in Hardware, Software, Internet Banking, Phone banking, number of ATMs, use of Cyber branches and Banking via SMS. The results of our measurements indicated that there is an impact on the use of MIS in Jordanian banks in the market value added (MVA), Earnings Per Share (EPS), Return on Assets (ROA), Net Profit Margin (NMP).


Banking , Information Systems, Internet

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