Electronic Banking and Financial Performance of the Russian Bank

The rapid development of the Internet has contributed to the emergence of electronic banking (e-banking). The introduction of new technologies makes it unnecessary to visit bank branches since to perform operations, it is enough to have a computer (laptop, smartphone etc.) and access to the Internet. Only after its widespread in developed countries, electronic banking began to demonstrate its noticeable growth in Russia, became one of the most dynamically upcoming services. Banks try to provide maximum comfort of service and to get closer to the client both in space and in time. Electronic (Internet) banking completely changes the form of interaction between banks and their customers, brings customer satisfaction, however what happens with performance in the banking industry? The question of a link between electronic banking and performance (ROE and ROA) was raised in the article. We found no significant relationship between offering of Internet banking and bank profitability. The findings of this study demonstrated that electronic banking is an essential part of industry development; however, bank management and shareholders should find other ways in order to increase performance.