25
SEPTEMBER 2024
12:30
This paper examines the impact of digitalization on bank performance using a new digitalization index, based on data from 279 European banks (2017-2022). We find that higher IT investments, better network efficiency, and digital channel development enhance profitability. The Covid-19 pandemic, along with a country’s digital infrastructure and expertise, moderates these effects, shaping the profitability of digitalized banks.