E-Commerce, E-Business and E-Service

18

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 ...