Cost structures and new technology: a case study of a bank in South Africa
AbstractThere has been considerable development in the technology used to provide bank services. This has led to an increase in the number of channels which can be used to deliver bank services to retail clients. Accordingly, there is a need to assess the costs of using different technologies to provide services to retail bank clients. In this paper, detailed cost data are used to estimate two stochastic frontier models of the cost of providing retail services for clients who use the branch bank teller and those who use an information technology based approach. We remove the inefficiencies in the cost estimates of the two different technologies to enable forecasts of the cost consequences of shifts in technology to be based on production technique best practice. The findings suggest that benefits can be obtained by reducing inefficiency and by extending new technology more broadly to lower income retail clients.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Financial Services Management.
Volume (Year): 1 (2005)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=76
banks; cost function estimates; efficiency; South Africa; financial services; cost structures; retail banking; new technologies; automated teller machines; ATMs; internet banking; electronic banking; branch bank tellers.;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Charles C. Okeahalam, 2008. "Internationalisation and firm performance: Evidence from estimates of efficiency in banking in Namibia and Tanzania," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(7), pages 942-964.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
If references are entirely missing, you can add them using this form.