Impact of the Digitalization on the Profitability and Cost Management of Russian Banks

The digitalization of banking is currently a very topical issue for economies all over the world. To remain competitive and customer-oriented, banks must implement modern digital technologies into their operations. These technologies allow banks to optimize their routine processes, provide a wider range of services to their customers and ensure the stable operation of all systems. The purpose of this paper was to analyze the impact of digitalization elements on the profitability and cost management of Russian banks. The sample consisted of the 50 largest Russian banks by asset size. The statistical analysis was carried out on the basis of panel data. The time interval for the study was taken from 2013 to 2020. Six different digital technologies were considered as elements of digitalization. According to the results of the study, it was possible to show that the elements of digitalization do have an impact on the financial performance of banking activities. Thus, based on the results of this work, it can be said that that banks should really implement new digital technologies in their processes, as it can lead to improved financial performance.