Analysis on efficiency of Korea's internet-only banks

Abstract

This paper analyzes the efficiency of internet-only banks in South Korea during the period starting from 2017 to 2019. To use the data envelopment analysis, we examine the efficiency rate of Korea’s banking industry. The data envelopment analysis(DEA) was generally used to apply to measure the efficiency of banks. From the perspective taken, variables alter to inputs and outputs. Herein the operating and intermediation approaches were applied. Analysis on two internet-only banks in Korea, the results indicate that Kakao bank efficiencies tend to increase. However, the K-bank’s efficiencies were goes down as time goes by. Considering this situation, the role of government is gaining importance in promoting innovation enabled by new technologies.