||The research focuses on 262 domestic branches of the domestic Bank C. First, in the case of Bank C, evaluate the operating performance of its branches by utilizing the method of data envelopment analysis. In this method, the items of input include deposit-taking, interest expenses, employment expenses, and rent expenses for branch offices; those of output include lending, interest income, service charges, and earnings before taxes. Furthermore, in the case of Bank C, the research further analyzes the influence of operating efficiency via the Tobit regression model when its branches promote the digital financial services. The empirical results reveal that most of the branches are placed in the situation of increasing returns to scale, that is to say, most of the branches fail to reach economic benefits under the maintenance of existing output scale. Each branch may improve its overall operating performance by adjusting its scale and increasing the amount of business.|
The analysis of Tobit regression shows that four variables, namely the number of e-banking account opening (including mobile & online banking), the number of e-banking transactions (including mobile & online banking), the number of valid credit cards, and the number of online applications for personal loans are significant. The latter three variables also indicate that when the branches promote the digital financial services, there is a positive significance to their operating efficiency; in addition, two control variables, namely locations and years of establishment of the branches, have no significant relationship with their efficiency values, showing that the locations of the branches in metropolitan areas or at townships and years of establishment of the branches are both not a major factor affecting their efficiency values. Through the analysis results of this research, in the case of Bank C, the intensity that its branches promote the digital financial services has a positive significance to their operating performance in the case of Bank C. Therefore, the management may design diversified and innovative digital services to improve the overall performance of Bank C.
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