Transformations  in
Business & Economics

DIGITAL BANKING AS A MEDIATOR BETWEEN BANKS’ SOCIAL AND FINANCIAL PERFORMANCE. EVIDENCE FROM ROMANIA
Georgiana-Loredana Frecea (Schipor), Diane Paula Corina Vancea, Liliana Nicodim, Raluca Andreea Trandafir, Costin Octavian Sorici

ABSTRACT: The Romanian banking sector has suffered a fundamental transformation during the COVID-19 pandemic, due to an increase of digital banking adoption. The present research aims to outline the clients’ perspective on digital banking adoption in Romania, considering its mediating role in the relationship between bank’s social and financial performance. The methodology was based on a mixed method approach, starting with a qualitative analysis of the banks’ CSR reporting and a coding process using the MAXQDA software. We used focus groups to investigate the client’s perceptions in pre-pandemic period, while for the clients’ perceptions during the COVID-19 pandemic the data was collected from 774 valid questionnaires. The results indicated a different focus on CSR dimensions before and during the pandemic, from a People-oriented approach to a more Profit-oriented one, suggesting that the use of digital banking was influenced by the ease of use, CSR disclosure and COVID-19 pandemic.

KEYWORDS:  banking, clients, digital banking, corporate social responsibility, Romania.

JEL classification:  G21, M10, M14