Effects of electronic banking on the structure of banking market with an emphasis on share changes

Along with the rapid growth of ICT and e-commerce, and then the expansion of electronic banking, it is expected that the structure of the banking market will also change. This research aims to study how the impact of electronic banking on the structure of the banking industry. In this study, we have analysed the effects of electronic banking on the structure of the banking industry in theory. These effects are divided into two groups of direct effect and network effect. It has been found that direct effect creates heterogeneous competition and the network effect leads to competition in management, marketing and information, and also increases the number of competitors.In the case of network effects, the crucial conclusion is that, when all banks use electronic banking, it is simply not predictable how banks can change their market share. For this reason, we present a conceptual and mathematical model of the effects of electronic banking on the relative contribution of banks.

Keywords:

Electronic Banking , Market Structure , Market Share