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Their univariate analysis shows that Internet-
primary banks have lower ROA, ROE, loan losses,
and net-interest margin, compared to newly char-
tered traditional banks. But, they indicate that the
Internet-primary banks are more profit efficient
than the newly chartered traditional banks. In fact,
several elements can justify the performance gap
of Internet banks with traditional banks especially
when starting up (EFMA, 2013):
– Incompressible structural costs: These are
expenses inherent to all banking activities and
are mainly composed of high fixed charges and
costs of IT development. In the case of Axa
Banque, these IT costs account for 30% of total
operating costs,
– A high turnover of advisers and the difficulty of
arranging schedules ...