PurposeThis paper aims to understand the impact of the adoption of Internet banking (INB) on banks' profitability. It further investigates this relationship among different age groups of customers.Design/methodology/approachA large panel data set of 19 commercial banks in Sweden over the period of 2007-2022 is used, and both static models (ordinary least squares (OLS), fixed effect (FE)) and a dynamic model (generalized method of moments (GMM)) are applied to deal with potential concerns of unobserved heterogeneity and endogeneity.FindingsThe analysis of the data reveals that the adoption of INB is positively related to banks' profitability, but the magnitude of this relationship depends on the age of the customers. In particular, the effect is most pronounced for middle-aged and older customers (45-74 years old), which is inconsistent with the common assumption that young, digitally savvy customers are the main drivers of digital value in banking.Practical implicationsThis research contributes to understanding the role of age in the digitalization-profitability link, which is relevant for bank managers and policymakers. These results imply that targeting digital services at middle-aged and older customers may be more likely to benefit banks' profitability. Additionally, policymakers can develop initiatives to facilitate digital inclusion among older age groups.Originality/valueThe paper extends previous research on the link between INB adoption and banks' profitability in one of the most digitalized societies in the world. It particularly explores the less investigated aspect of generational differences in INB adoption and its impact on bank profitability. To the best of our knowledge, this is also the first study within the Swedish context to investigate generational differences in INB adoption and its impact on banks' profitability.

Purpose: This study empirically examines the nexus between central bank interest rates and profitability of commercial banks within the specific context of Sweden.

Design/methodology/approach: Bank-level longitudinal panel data from 20 Swedish commercial banks over the period from 2007 to 2022 are analyzed using univariate and multivariate statistical techniques, including ordinary least squares (OLS), fixed-effects models and feasible generalized least-squares (FGLS) regression, to provide robust insights into the factors influencing bank profitability.

Findings: Contrary to common expectations, the result of this study shows no statistically significant relationship between central bank interest rate and banks profitability in Sweden. The findings of the three models indicate that the organization-level determinants such as persistent profitability, capital adequacy, size and revenue growth, are more important than the central bank interest in explaining profitability among Swedish banks.

Originality/value: The study expands our knowledge regarding the complexities of relationship between the central banks interest rate on banks' profitability particularly in the less investigated context of Sweden. The study is also notable as it finds no significant relationship between central banks interest rate and banks profitability, which may be attributed to the large database used as well as the inclusion of many organizational level variables.

PurposeThis study aims to investigate the determinants of bank profitability in Sweden, focusing on the impact of bank-specific, macroeconomic and industry-specific factors within a regulatory and compliance framework.Design/methodology/approachThe study uses a panel data set of Swedish banks and three econometric models, ordinary least squares (OLS), fixed effects (FE) and panel-corrected standard errors (PCSE), to address unobserved heterogeneity, heteroskedasticity, contemporaneous correlation and serial autocorrelation.FindingsThe findings reveal the critical role of bank-specific factors in shaping banks' profitability, while macroeconomic and industry variables have a negligible impact. Capital adequacy emerges as a robust determinant, underscoring its regulatory significance. Lagged profitability exerts a persistent influence across models, emphasizing the role of historical performance. Banks' revenue growth also shows consistent positive and significant effects across all models. Macroeconomic variables (GDP, inflation) show negligible impacts, while monetary policy indicators (interest rates, money supply) display instability.Originality/valueThe study's originality lies in its methodological rigor and focus on Sweden, a developed yet understudied market. The study offers novel insights into how regulatory frameworks, bank strategies and macroeconomic conditions interact to shape profitability. By contrasting OLS, FE and PCSE results, the study advances methodological discourse on panel data analysis in banking, providing a template for future research in regulated financial systems. These contributions bridge theoretical, empirical and policy gaps, enriching global understanding of profitability drivers in stable, high-compliance economies.

Successful implementation of e-banking technology depends on how consumers perceive the technology and how likely they are to adopt it. Although several studies have analysed the impact of some specific negative emotions, few studies examine a broad range of consumers' negative emotions (i.e. both deterrence and loss emotions) arising from appraisals of e-banking technology. This study investigates the possible relationships between deterrence and loss emotions, and consumers' behavioural intention to adopt emerging e-banking technology. Based on the unified theory of acceptance and use of technology, partial least squares structural equation modelling was used to analyse a conceptual model and related hypotheses. The empirical evidence draws attention to the relationship between loss emotions and consumers' behavioural intention to adopt emerging e-banking technology through effort expectancy and performance expectancy, respectively.

Purpose The purpose of this study is to empirically investigate the relationship between a set of functional and social-psychological barriers and bank customers' intention to fully adopt digital payment methods (DPMs). Design/methodology/approach The data were collected via an online questionnaire sent to two samples of Swedish bank customers, namely, adopters-accepters (i.e. young bank customers) and adopters-resisters (i.e. a group opposing a cashless society). Hypotheses were tested by applying an ordinal regression model. Findings Regarding the adopters-accepters, privacy and access barriers can be obstacles to the full adoption of DPMs. The adopters-resisters perceived all five studied barriers as significant, though only the impersonalisation barrier seemed to matter when the barriers were related to their intention to fully adopt DPMs. Moreover, the results suggest that barriers have a stronger negative effect on the intention to fully adopt among those with extensive experience of DPMs. Practical implications Based on the barriers affecting the intention of particular groups of bank customers to adopt DPMs, banks could implement customised measures to promote the ongoing development of digital financial services. Originality/value In this under-researched area, this study provides empirical knowledge of the influence of various barriers on the intention of bank customers characterised as adopters-accepters and adopters-resisters to fully adopt DPMs.