DIGITAL BANKING AND FINANCIAL PERFORMANCE: UNVEILING THE INTERPLAY WITH MACROECONOMIC AND BANK-SPECIFIC FACTORS

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DIGITAL BANKING AND FINANCIAL PERFORMANCE: UNVEILING THE INTERPLAY WITH MACROECONOMIC AND BANK-SPECIFIC FACTORS

Journal Title: Scientific Work - Year 2024, Vol 18, Issue 4

Abstract

Abstract In this study, we delve into the intricate dynamics between digital banking adoption and the financial performance of leading global banks, with a keen focus on both macroeconomic and bank-specific factors. Our analysis transcends the primary effects of online banking to uncover how GDP growth, inflation, interest rates, Capital Adequacy Ratio (CAR), and Cost-to-Income Ratio (CTI) contribute to shaping the financial outcomes in the digital era. Spanning from 2014 to 2022, this research leverages advanced econometric models to isolate and assess the influence of these critical variables on banks' Return on Assets (ROA). The findings not only highlight the pivotal role of digital banking in modern financial strategies but also provide insight into the broader economic and regulatory contexts affecting banks' profitability and operational efficiency. This study aims to guide stakeholders through the multifaceted impacts of digital transition in banking, offering strategic insights for navigating the challenges and leveraging opportunities in the evolving financial landscape.

Authors and Affiliations

Elkhan Salmanov

Keywords

Keywords: Digital Banking Digitalization Banking Industry Bank Performance Return on Assets (ROA) Growth per Capita (GDP) Capital Adequacy Ratio (CAR) Cost to Income Ratio(CTI)

EP ID EP748654
DOI 10.36719/2663-4619/101/165-169
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