The stimulus of advances in Information Technology (IT), particularly the Internet, has forced firms to explore new organizational forms and deliver service innovation. Emerging Internet-based electronic distribution channels, i.e., Internet channels, might be another forms of services innovation for firms to face the market dynamics. However, empirical studies fail to provide direct evidence of whether Internet channels enhance business performance[1]. In order to fill in the literature gap, this empirical study attempts to investigate performance implications of Internet channels in Taiwan by means of applying data envelopment analysis (DEA). Results show that operating efficiency of financial services firms following the Internet channels announcement is increased. This work therefore concludes that Internet channels have positive influence on business performance.