The impacts of internal information technology application index on financial performance of Vietnamese commercial banks

Technology has become essential in every industry, including banking. It can optimize work processes and improve customer service. However, the question remains: does it help banks improve business efficiency? This article conducted a panel data regression analysis of commercial banks listed on the Vietnamese stock exchange from 2014 to 2023 to investigate the correlation between internal information technology applications and banks' financial performance. The research results revealed that the internal information technology application (ICTcore), which includes implementing core banking, deploying basic applications, and implementing electronic payments, has a negative correlation with the financial performance of banks. Additionally, the size of the bank and the scale of loans can also impact banking financial performance, while the bank growth rate has no impact on the ROA of banks observed from 2014 to 2023