Digital Transformation of the Banking Industry in Developing Countries

• Autores: Phuong Thanh Thi Tran, Thi Thuy Hang Le, Nga Phan Thi Hang
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 8, Nº. 5, 2023 (Ejemplar dedicado a: Continuous publication; e01897)
• Idioma: inglés
• DOI: 10.26668/businessreview/2023.v8i5.1503
• Enlaces
  • Texto completo (pdf)
• Resumen

  • Purpose:  The study's objective is to test the impact of digital transactions on banking performance. Based on the previous research and the actual situations, it has been recognized that the critical role of digital banking is in developing the banking industry, especially in developing countries.

      Theoretical framework:  In the next section, the study presents background information to promote the research. The digital transformation has changed how customers use financial services. This has pushed banks to adapt more quickly to the wave of digital transformation if they don't want to lose their valuable customer base.

      Design/methodology/approach:  the methodology applied uses POOL, FEM, REM, and FGLS models to examine the impact of banking transactions made by digital technology on the bank's deposit and lending revenue. This article studies banking operations on digital platforms from 2012 to 2019 in developing countries.

      Findings: The article's findings showed that digital banks' flexible products and services bring many benefits with a high level of interaction, such as supporting the relationship between customers and banks and improving operating revenue.

      Research, Practical & Social implications: Practical implications enhanced the development potential of digital banking is relatively large, stemming from the market demand development orientation of the banking industry.

      Originality/value: The paper's originality and value help banks invest in digital technology as the way forward to better serve their customers.

• Referencias bibliográficas
  • Aldás-Manzano, J., Lassala-Navarré, C., Ruiz-Mafé, C., & Sanz-Blas, S. (2009). The role of consumer innovativeness and perceived risk...
  • Alt, R., Beck, R., & Smits, M. T. (2018). FinTech and the transformation of the financial industry. Electronic Markets, 28, 235-243. https://doi.org/10.1007/s12525-018-0310-9.
  • Anwar, A., Thongpapanl, N., & Ashraf, A. R. (2021). Strategic imperatives of mobile commerce in developing countries: the influence of...
  • Baicu, C. G., Gârdan, I. P., Gârdan, D. A., & Epuran, G. (2020). The impact of Covid-19 on consumer behavior in retail banking. Evidence...
  • Bain & Company (2014). Customer loyalty inretail banking: Global edition 2014. Retrieved from http://www.bain.com/Images/DIGEST Customer...
  • Barquin, S., & Vinayak, H. V. (2015). Digital banking in Asia: What do consumers really want? McKinsey & Company. Retrieved from:...
  • Busby, D. (2017). Adopting the best approach for a digital banking solution: combine the benefits of the build, buy or 'outsource'...
  • Casaló, L. V., Flavián, C., & Guinalíu, M. (2007). The role of security, privacy, usability, and reputation in the development of online...
  • Chanias, S., Myers, M. D., & Hess, T. (2019). Digital transformation strategy making in pre-digital organizations: The case of a financial...
  • Choudrie, J., & Vyas, A. (2014). Silver surfers adopting and using Facebook? A quantitative study of Hertfordshire, UK, applied to organizational...
  • Choudrie, J., Junior, C. O., McKenna, B., & Richter, S. (2018). Understanding and conceptualizing the adoption, use and diffusion of mobile...
  • Clement, J. (2020). Number of monthly active Facebook users worldwide as of 1st quarter 2020. Retrieved from https://www.statista.com/statistics/264810/number-of-monthly-active-facebook-users-worldwide.
  • Crosby, C. S., Jensen, J., & Ong, J. (2013). Global private banking and wealth management survey 2013. London: Price water house Coopers.
  • Davis, F. D. (1989). Perceived usefulness, ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-339. https://doi:10.2307/249008.
  • Diener, F., & Špacek, M. (2021). Digital transformation in banking: A managerial perspective on barriers to change. Sustainability, 13(4),...
  • Ernst &Young (2016). Could your clients' needs be your competitive advantage? London: Ernst & Young.
  • Foon, Y. S., & Fah, B. C. Y. (2011). Internet banking adoption in Kuala Lumpur: An application of UTAUT model. International Journal of...
  • Gasser, U., Gassmann, O., Hens, T., Leifer, L., Puschmann, T., & Zhao, L. (2017). Digital Banking 2025. Research Platform Alexandria....
  • Glover, S., & Benbasat, I. (2010). A comprehensive model of the perceived risk of e-commerce transactions. International Journal of Electronic...
  • Iansiti, M., & Lakhani, K. R. (2017). The truth about Blockchain. Harvard Business Review, 95(1), 118-127.
  • Ito, J., Narula, N., & Ali, R. (2017). The Blockchain Will Do to the Financial System What the Internet Did to Media. Harvard Business...
  • Jüngera, M., & Mietznerb, M. (2020). Banking goes digital: The adoption of FinTech services by German Households. Finance Research Letters,...
  • Kitsios, F., Giatsidis, I., & Kamariotou, M. (2021). Digital Transformation and Strategy in the Banking Sector: Evaluating the Acceptance...
  • Koroleva, E., & Kudryavtseva, T. (2020). Factors influencing digital bank performance. The 2018 International Conference on Digital Science,...
  • Krasonikolakis, I., Tsarbopoulos, M., & Eng, T. Y. (2020). Are incumbent banks bygones in the face of digital transformation? Journal...
  • Lee, M. C. (2009). Factors influencing the adoption of internet banking: An integration of TAM and TPB with perceived risk and benefit. Electronic...
  • Mangin, J. P., Lévy, B., Calvo-Porral, C., Mesly, O., Telahigue, I., & Trudel, M. (2014). The moderating role of risk, security, and trust...
  • Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57, 339-343....
  • Michael, B. (2019). Real econometrics: the right tools to answer important questions. Oxford University Press.
  • Mukherjee, A., & Nath, P. (2003). A model trust in online relationship banking. International Journal of Bank Marketing, 21(1), 5-15.
  • Newton, A. (2016). Hype cycle for digital banking transformation. Stamford: Gartner Group.
  • Payne, E. H. M., Dahl, A. J., & Peltier, J. (2021). Digital servitization value co-creation framework for AI services: a research agenda...
  • Pramanik, H. S., Kirtania, M., & Pani, A. K. (2019). The essence of digital transformation - Manifestations at large financial institutions...
  • Schuelke-Leech, B. A. (2018). A model for understanding the orders of magnitude of disruptive technologies. Technological Forecasting and...
  • Sharif, A., & Raza, S. A. (2017). The influence of hedonic motivation, self-efficacy, trust, and habit on the adoption of internet banking:...
  • Skinner, C. (2014). Digital bank: Strategies to launch digital or become a bank. Singapore: Marshall Cavendish Business.
  • Stoeckli, E., Dremel, C., & Uebernickel, F. (2018). Exploring characteristics and transformational capabilities of InsurTech innovations...
  • Tsindeliani, I. A., Proshunin, M. M., Sadovskaya, T. D., Popkova, Z. G., Davydova, M. A., & Babayan, O. A. (2022). Digital transformation...
  • Udin, U. (2023). Linking transformational leadership to organizational learning culture and employee performance: The mediation-moderation...
  • Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118-144....
  • Wessel, L., Baiyere, A., Ologeanu-Taddei, R., Cha, J., & Blegind-Jensen, T. (2021). Unpacking the difference between digital transformation...
  • Yazid, Z. E., Zainol, Z., & Bakar, J. A. (2023). E-commerce via mobile banking: contemporary shariah issues and ways to address them....
  • Zandhessami, H., & Geramayeh, P. (2014). Determinants of user acceptance of internet banking: An empirical study. Management Science Letters,...
  • Zhao, Q., Tsai, P. H., & Wang, J. L. (2019). Improving financial service innovation strategies for enhancing China's banking industry...