Analysis of the Impact of Digital Technologies on the Banking Industry

Currently, banks are active users of information and financial technologies. Along with the development of technology and the digitalization of all industries, the banking industry is no exception. From the extent to which and with what success banks use IT technologies, their position in the market depends. Thus, on the one hand, the digitalization of banking services is inevitable. On the other hand, there is a certain degree of ambiguity as to how digitalization of banking services affects the development of banking. This issue is dedicated to the present study, the purpose of which is to determine and test the hypothesis about the positive impact of digital technologies on the activities of banks (Hypothesis 1). In addition, an alternative hypothesis about the presence of the fact of greater influence of intrabank, foreign economic and industry indicators on the bank’s performance, rather than the digitalization of banking services, achieved over the past six years (Hypothesis 2) was proposed. As a research methodology, an econometric model was chosen, which allows assessing the impact of digital innovations introduced in various banks on banks' performance. The analysis tool is the Stata programming environment. As initial data, indicators of 40 banks of Russia collected over the past six years have been taken. The return on equity (ROE) and return on assets (ROA) were chosen as productive indicators of banks' activities. Return on equity shows the net return of shareholders' equity, while return on assets shows the net relative return from total banking assets. Keywords: digital technologies, innovations, banking.