Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2020, No. 1, Article 5, Year of publication: 11, March, 2020
The impact of digitalisation of banking services on the performance of commercial banks


Slavica Dragišić, MSc*

*Nova banka AD Banja Luka



Every market, and so the financial one, is nowadays characterized by stakeholders’ struggle to survive in dynamic business environment where the institutional, organisational and functional changes have become inevitable. The necessity of those changes is a result of the development and application of information technologies and systems, which have made economic subjects change and adjust their business strategies to newly created conditions. As a form of innovative strategy, digitalisation has become an all-the-more frequent sub-ject of research carried out by banks, as well as one of the methods used by the banks in combatting competition and market changes. By putting digitalisation in the focus of their business strategies, programmes and measures, banks tend to contribute to an improvement in business and strengthening of competitiveness. Innovation imposes itself as a necessity, and digitalisation is what contributes to mak-ing differences between market participants. This paper tends to look for an answer to the research question of how much the banks in Bosnia and Herzegovina (BiH) use the digitalisation of banking services and whether the application of the digitalisation of services as an innovative strategy influences the performance of the bank and the strengthening of the bank’s position on the market. We will try to find answers to these questions through desk analysis of the available data publicly announced on the websites of all the banks in BiH. Qualitative research based on the method of case study of two banks, one with the majority ownership of foreign capital and the other with the majority ownership of domestic capital, has been conducted based on the information collected from the reports from the Bank-ing Agency of the Republic of Srpska and the Central bank of BiH, as well as from the official financial reports of the banks. The aim of the research is to determine whether the digitalisation affects the business operations of commercial banks in BiH and the Republic of Srpska. In a broad sense, through the analysis of the collected data and their descriptive interpretation, the results of the research indicate a positive correlation between the application of digitalisation and modern information technologies in the development of the banks’ products and services, as well as in an increased use of information technology, especially in the payment segment and the emergence of the new forms of banks. The results can be used for the purpose of advancement of banking business and more complete application of the digitalisation strategy.

Keywords: innovative strategies, digitalisation, innovations, commercial bank, banking business

DOI: 10.7251/FIN1904071D

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