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Digitainability and Financial Performance: Evidence from the Serbian Banking Sector

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  • Nikola Stefanovic

    (Faculty of Business, Singidunum University, 160622 Beograd, Serbia)

  • Lidija Barjaktarovic

    (Faculty of Business, Singidunum University, 160622 Beograd, Serbia)

  • Alexey Bataev

    (Graduate School of Public and Financial Management, Petersburg Polytechnic University, 195251 St. Petersburg, Russia)

Abstract

This study aimed to explore the cross-section of digitalization and sustainability in banking and its effect on bank performance. The sample consisted of all of the banks ( n = 25) operating in the Republic of Serbia from 2011 to 2020. The research results show that the banks focusing on digitalization and sustainability are profitable, even in the face of coronavirus disease 2019 (COVID-19). Furthermore, using the Pearson’s correlation, the study shows that the level of investment in digital transformation has a strong relationship with the net result. We advocate that digitainability in banking is an important factor in uncertain times and should be fostered and included in bank strategies in the post-COVID 19 world. To the best of our knowledge, this is the first study that provides insight into digitainability and bank performance.

Suggested Citation

  • Nikola Stefanovic & Lidija Barjaktarovic & Alexey Bataev, 2021. "Digitainability and Financial Performance: Evidence from the Serbian Banking Sector," Sustainability, MDPI, vol. 13(23), pages 1-15, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:13461-:d:695681
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    References listed on IDEAS

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    1. Francisco Javier Forcadell & Elisa Aracil & Fernando Úbeda, 2020. "The Impact of Corporate Sustainability and Digitalization on International Banks’ Performance," Global Policy, London School of Economics and Political Science, vol. 11(S1), pages 18-27, January.
    2. Francisco Zabala Aguayo & Beata Ślusarczyk, 2020. "Risks of Banking Services’ Digitalization: The Practice of Diversification and Sustainable Development Goals," Sustainability, MDPI, vol. 12(10), pages 1-10, May.
    3. Niemand, Thomas & Rigtering, J.P. Coen & Kallmünzer, Andreas & Kraus, Sascha & Maalaoui, Adnane, 2021. "Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization," European Management Journal, Elsevier, vol. 39(3), pages 317-326.
    4. Kishore Kumar & Ajai Prakash, 2020. "Managing sustainability in banking: extent of sustainable banking adaptations of banking sector in India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5199-5217, August.
    5. Francisco Javier Forcadell & Elisa Aracil & Fernando Ubeda, 2020. "Using reputation for corporate sustainability to tackle banks digitalization challenges," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2181-2193, September.
    6. Lihua Zuo & Jack Strauss & Lijuan Zuo, 2021. "The Digitalization Transformation of Commercial Banks and Its Impact on Sustainable Efficiency Improvements through Investment in Science and Technology," Sustainability, MDPI, vol. 13(19), pages 1-17, October.
    7. Zbigniew Korzeb & Reyes Samaniego-Medina, 2019. "Sustainability Performance. A Comparative Analysis in the Polish Banking Sector," Sustainability, MDPI, vol. 11(3), pages 1-16, January.
    8. Shivam Gupta & Mahsa Motlagh & Jakob Rhyner, 2020. "The Digitalization Sustainability Matrix: A Participatory Research Tool for Investigating Digitainability," Sustainability, MDPI, vol. 12(21), pages 1-27, November.
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    1. Jiajia Liu & Kexin Zhou & Ye Zhang & Fangcheng Tang, 2023. "The Effect of Financial Digital Transformation on Financial Performance: The Intermediary Effect of Information Symmetry and Operating Costs," Sustainability, MDPI, vol. 15(6), pages 1-22, March.

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