The International Review of Financial Analysis journal published on November 2024 the paper “Digitalization and banks’ efficiency: Evidence from a European analysis”, co-authored by EMEA President Prof. Rym Ayadi, Professor at Bayes Business School, City University of London; EMEA Research Fellow, Doriana Cucinelli, University of Parma; Laura Chiaramonte, University of Verona; and Milena Migliavacca, Catholic University of the Sacred Heart.
The paper firstly investigates the impact of digitalisation on bank efficiency and then analyses potential non-linearities in this relationship, as well as the possible moderating role played by bank business models, covering a sample of European banks over the period 2006–2021. The results suggest that IT investments improve bank efficiency – more on the profit side than on the cost side – but that this interplay has an inverted U-shape, which indicates that excessive investment in IT technologies may be detrimental to both profit and cost efficiency.
The International Review of Financial Analysis (IRFA) is a non-affiliated refereed journal whose primary goal is to provide an outlet for high quality Financial Research. The journal is open to a diversity of Financial Research topics and will be unbiased in the selection process.
