Estimation of the Factors Affecting the Demand for E-Banking Services in Iran (Account Balance and Fund Transferring Money)

One of the most important research aspects in view of providers of these services (electronic banking services) is the society demand. Many studies have been done on the basis of sampling but there is no study which has been done by entire data of statistical population.The main purpose of this research is to identify and analyses of the effects of factors such as fees, national income, urbanization rate, literacy rate, inflation rate, the number of service providing machines, and the number of issued cards affecting the demand; based on the theoretical demand functions.So, we expect that all factors will have positive effect on demand except fee. In the modeling, we use panel data of 16 banks during 2006-2010 and factor analysis method for time-series variables. Actually, only the fee has negative effect on quantity of demand. The factor fee has low-elasticity because there is no exact replacement for these services.