IDEAS home Printed from https://ideas.repec.org/h/pal/pmschp/978-3-031-32931-9_10.html
   My bibliography  Save this book chapter

The Digitalization of the European Banking Industry: Some Evidence

In: New Challenges for the Banking Industry

Author

Listed:
  • Santiago Carbó-Valverde

    (University of Valencia
    Funcas)

  • Pedro J. Cuadros-Solas

    (Funcas
    CUNEF Universidad)

  • Cristina Gonnella

    (University of Pisa)

  • Francisco Rodríguez-Fernández

    (Funcas
    University of Granada)

Abstract

The relevance of technology has increased for the banking industry. Improving banks’ technological skills is crucial to compete in a digital post-pandemic context. This chapter examines the digital transformation of the European banking industry by focusing on the annual banks’ expenses on information technology (IT). Using a representative sample of European banks from 2017 to 2021, we find that the ratio of IT expenses to total operating expenses and the ratio of IT expenses to total operating income have increased by 1.02 percentage points (+10.34%) and 0.95 percentage points (+15.82%), respectively. Moreover, becoming a high-IT bank is associated with some bank features. Less capitalized, riskier, more profitable, and less efficient and those banks that exhibit a lower growth of total assets spend more on IT. The chapter also reveals that banks are taking a step forward in critical IT areas such as artificial intelligence, blockchain, cloud computing, biometrics, and big data.

Suggested Citation

  • Santiago Carbó-Valverde & Pedro J. Cuadros-Solas & Cristina Gonnella & Francisco Rodríguez-Fernández, 2023. "The Digitalization of the European Banking Industry: Some Evidence," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Santiago Carbó-Valverde & Pedro J. Cuadros-Solas (ed.), New Challenges for the Banking Industry, chapter 0, pages 255-281, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-3-031-32931-9_10
    DOI: 10.1007/978-3-031-32931-9_10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:pmschp:978-3-031-32931-9_10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.