THE IMPACT OF ELECTRONIC BANKING SERVICES ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN ALGERIA

This study aims to highlight the impact of electronic banking services on the performance of commercial banks in Algeria during the period from 2004 to 2023. The study adopts a descriptive analytical approach to first examine the reality of electronic banking in Algeria through the analysis of various indicators related to electronic banking services and the financial performance of the Algerian banking sector, with the aim of determining the extent of their development during the period from 2004 to 2023. Secondly, an econometric analysis is conducted to clarify the nature of the relationship between electronic banking indicators and the financial performance of commercial banks in Algeria in both the short and long-term using the ARDL model. The study concludes with the following key findings: there is a positive relationship between ATMs (ATM), the commercial bank branch index (BRN) and the online borrower’s index (CRD) with the financial performance index of banks (ROA). However, there is an inverse relationship with the non-performing loans index (RISK) in both the short and long term. Accordingly, digital transformation in the Algerian banking sector contributes to enhancing operational efficiency, improving profitability, and expanding the reach of financial services to new customer segments. Accordingly, promoting financial inclusion and helping to mitigate banking risks.