Effects of the Application of ATM, Points of Sale and Pin Pad Devices on the Profitability of the Selected Banks in Iran

In recent years، the application of information technology has been remarkably increased in the service sector in general and in the banking industry in particular. The application of IT paved the way for internet banking، electronic payment، and enhanced security in investment and communication. This study investigates the effect of ICT (points of sale، ATM، branch pin pad) on the profitability of the selected banks in Iran. The empirical model includes bank asset return as dependent variable، whereas the explanatory variables consist of concentration ratio، bank size، bank’s market share، branch pin pad، POS and ATM. To estimate the specified model، unbalanced panel approach is employed using the data over the period 2002-2009. The results suggest that the application of ICT has positive and statistically significant effect on banks performance in Iran.