The Investigation of Electronic Banking System Performance in Iranian Banks with Applying the Data Envelopment Analysis and Principle Component Analysis Methods

In this paper an attempt is made to study and analyse the performance of 18 Iranian banks through utilizing the conventional technologies in electronic banking system. In this context, we applied the combined methods of Data Envelopment Analysis and Principle Component Analysis to specify the variables affecting and determining the efficiency and ranking of the Banks under the review However the findings of this paper prima facie, indicate that out of 6 input and output variables, combination of 2 input variables of “operational costs” and “number of bank employees”, along with 2 output variables of “operational Incomes” and “number of ATM transactions, POS and branches” are considered as most appropriate variables for analyzing the efficiency of banks under the study. Thus, Bank Meli and Bank Parsian enjoyed the highest efficiency level among the public and private banks which are reviewed in this paper respectively. Moreover all banks concerned in this study are classified into two groups i.e banks which are dealing with operational income and those which utilize the electronic banking in to to.