IDEAS home Printed from https://ideas.repec.org/h/spr/eurchp/978-3-031-80256-0_20.html
   My bibliography  Save this book chapter

Digital Transformation and the Development of Financial Industry

Author

Listed:
  • Tonći Svilokos

    (University of Dubrovnik)

Abstract

Under the influence of accelerated digitalization, the financial industry is experiencing dramatic changes due to changing customer behaviour, growing expectations, the emergence of new distribution channels and the emergence of innovative products and services. This paper investigates the effects of digital transformation on the accessibility, depth, efficiency, and stability of financial institutions and markets amidst accelerating digitalization. Utilizing panel data from selected OECD countries spanning 2006 to 2021, the study constructs a Digital Transformation Index (DTI) based on ten indicators. This index serves as a proxy for digital transformation. Results indicate varied impacts across different facets of financial development. Increased digitalization leads to a decline in the financial resources provided to the private sector by domestic money banks as a share of GDP, and to a lower share of total assets relative to GDP. Digital development also has a negative impact on the number of commercial bank branches per capita. On the other hand, the positive impact of digitalization on the efficiency of financial institutions is undisputed, as the DTI index has a positive effect on a bank’s non-interest income relative to total income and a negative effect on a bank’s operating costs relative to total assets.

Suggested Citation

  • Tonći Svilokos, 2025. "Digital Transformation and the Development of Financial Industry," Eurasian Studies in Business and Economics,, Springer.
    • Handle: RePEc:spr:eurchp:978-3-031-80256-0_20
    DOI: 10.1007/978-3-031-80256-0_20
    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:spr:eurchp:978-3-031-80256-0_20. 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.springer.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.