The performance of internet-only banks: Evidence from the U.S. in 2009-2018
This paper examines the financial performance of the Internet-only bank, and investigate whether the Internet-only bank can outperform the traditional bank. The analysis is based on the banks in the US from 2009 to 2018, and is measured by the fixed effects model. Overall, the empirical suggests tha...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2019
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| Online Access: | https://eprints.nottingham.ac.uk/57960/ |
| _version_ | 1848799513016270848 |
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| author | Shen, Shiming |
| author_facet | Shen, Shiming |
| author_sort | Shen, Shiming |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper examines the financial performance of the Internet-only bank, and investigate whether the Internet-only bank can outperform the traditional bank. The analysis is based on the banks in the US from 2009 to 2018, and is measured by the fixed effects model. Overall, the empirical suggests that Internet-only banks tend to underperform traditional banks on profitability. Besides, there is no reduction in overhead costs due to the lack of physical branches. However, this paper further discusses the scale economies and experience economies between two different business models, examining whether technology can internalize additional scale effects or more experience effects. The results find that technology based scale and experience effects favour pure-play Internet banks, which means the technology skills indeed improve the performance. |
| first_indexed | 2025-11-14T20:36:51Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-57960 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:36:51Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-579602022-12-02T13:09:38Z https://eprints.nottingham.ac.uk/57960/ The performance of internet-only banks: Evidence from the U.S. in 2009-2018 Shen, Shiming This paper examines the financial performance of the Internet-only bank, and investigate whether the Internet-only bank can outperform the traditional bank. The analysis is based on the banks in the US from 2009 to 2018, and is measured by the fixed effects model. Overall, the empirical suggests that Internet-only banks tend to underperform traditional banks on profitability. Besides, there is no reduction in overhead costs due to the lack of physical branches. However, this paper further discusses the scale economies and experience economies between two different business models, examining whether technology can internalize additional scale effects or more experience effects. The results find that technology based scale and experience effects favour pure-play Internet banks, which means the technology skills indeed improve the performance. 2019-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/57960/1/14340909_%20N14157_The%20performance%20of%20internet-only%20banks%20Evidence%20from%20the%20U.S.%20in%202009-2018.pdf Shen, Shiming (2019) The performance of internet-only banks: Evidence from the U.S. in 2009-2018. [Dissertation (University of Nottingham only)] Internet-only banks Profitability US |
| spellingShingle | Internet-only banks Profitability US Shen, Shiming The performance of internet-only banks: Evidence from the U.S. in 2009-2018 |
| title | The performance of internet-only banks: Evidence from the U.S. in 2009-2018 |
| title_full | The performance of internet-only banks: Evidence from the U.S. in 2009-2018 |
| title_fullStr | The performance of internet-only banks: Evidence from the U.S. in 2009-2018 |
| title_full_unstemmed | The performance of internet-only banks: Evidence from the U.S. in 2009-2018 |
| title_short | The performance of internet-only banks: Evidence from the U.S. in 2009-2018 |
| title_sort | performance of internet-only banks: evidence from the u.s. in 2009-2018 |
| topic | Internet-only banks Profitability US |
| url | https://eprints.nottingham.ac.uk/57960/ |