Internet banking as a case of financial innovation in Turkey

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Tezin Türü: Yüksek Lisans

Tezin Yürütüldüğü Kurum: Orta Doğu Teknik Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İktisat Bölümü, Türkiye

Tezin Onay Tarihi: 2013

Öğrenci: YUNUS EMRAH BULUT

Danışman: HASAN CÖMERT

Özet:

With the increasing usage and functionality, Internet banking becomes a significant part of our lives. This study investigates Internet banking in Turkey as a case of financial innovation. Using Internet usage share from the payment systems of the Central Bank of The Republic of Turkey as an indicator of adoption of Internet banking, data set for 16 banks for 21 quarters are investigated with a panel regression. Some of the common Schumpeterian arguments are elaborated and concluded that Internet banking adoption in Turkey is positively related with the sizes’ of the banks while the relationship between banks’ sizes and adoptions is inverse U shaped. Moreover, the share of the households that use Internet also affects Internet banking adoption positively and Internet banking is used mainly as an alternative to the bank branches. Lastly, our analysis indicates that 2008 financial crisis influenced the usage of Internet banking in Turkey as the volumes of Internet banking operations in 2008 is the lowest of 2006-2012 period.