A Study of Applying DEA to Measure Performance on Bank Implementing Financial Electronic Data Interchange

This study applies Data Envelopment Analysis (DEA) to measure the relative efficiencies on a bank in Taiwan and examine the performance and productivity changes when banks implement financial electronic data interchange. The article includes 18 branches of the performance for implementation of financial electronic data interchange of the overall efficiency, pure technical efficiency, scale efficiency, analysis of reference groups and the potential to improve the value of analysis for different branch performance assessments. DEA methodology can facilitate banks in examining their business options and further pinpoint the weakness and strengths in branch operations. Our empirical results shown that case bank can adopt the DEA evaluation model as references to upgrade the overall operating performance effectively for creating competitive advantages.