Assessing the Impact of E-Banking on Financial Development–Approach System Dynamics

In recent years, the growing trend of using new electronic payment tools in the country's banking system is significant. In such a way that all banking affairs such as payments, withdrawals, etc. are done electronically and online. Since banks play an important role in the financial development triangle, in this study, we have tried to investigate the role of electronic banking on financial development by designing a system model of financial development. The results of this study are specifically used for the development of the banking system and the financial market. In fact, with the help of simulations performed in this research, among the identified factors, the most influential factors on financial development can be identified and improve the organization's decisions. For this purpose, using Vensim software, the system model of financial development in Iran for banks has been simulated. In this research, the library method has been used to collect information in the field of literature and research background, and by studying relevant articles, books and researches and searching the Internet, desired information has been collected. Previous studies have also been used to develop subjective models and obtain equations and relationships between variables, and the required data have been extracted from central bank statistics and data from the Ministry of Economy. The results indicate that the habit of the new system (electronic banking) and the use of electronic payment increases the income of commercial banks and ultimately its use leads to the growth of financial development and liquidity index.