Did Financial Consumers Benefit from the Digital Transformation? An Empirical Investigation

This study aimed to test, through empirical investigation, how the rapid advancement of digital transformation (DT) has impacted price financial services. To this end, we compiled a set macro-level indicators on aggregate outcomes services sector in Korea over last three decades and conducted an analysis gauge effects DT country using those indicators. Using ARDL-ECM (autoregressive distributed lag error-correction model), show that, time, unit cost intermediation tended move tandem with growth economic output, although profit portion not exhibited long-term relationship GDP trend. The effect trend is negative (i.e., cost-saving) for labor input, capital expenditure, total intermediation, which are all shown be statistically significant. Consequently, conclude that contributed enhancing consumer benefit, mainly by achieving operational efficiency capital, from 1990 2019 Korea. From policy perspective, our finding implies DT-driven innovation can benefit customers if excessive levels restrained market competition.