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Journal ArticleDOI

Digital Transformation of the Banking Industry in Developing Countries

TL;DR: In this paper , the impact of digital transactions made by digital technology on the bank's deposit and lending revenue in developing countries has been investigated using POOL, FEM, REM, and FGLS models, which 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.
Abstract: 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.

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References
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Journal ArticleDOI
Gregory Vial1
TL;DR: A framework of digital transformation articulated across eight building blocks is built that foregrounds digital transformation as a process where digital technologies create disruptions triggering strategic responses from organizations that seek to alter their value creation paths while managing the structural changes and organizational barriers that affect the positive and negative outcomes of this process.
Abstract: Extant literature has increased our understanding of specific aspects of digital transformation, however we lack a comprehensive portrait of its nature and implications. Through a review of 282 works, we inductively build a framework of digital transformation articulated across eight building blocks. Our framework foregrounds digital transformation as a process where digital technologies create disruptions triggering strategic responses from organizations that seek to alter their value creation paths while managing the structural changes and organizational barriers that affect the positive and negative outcomes of this process. Building on this framework, we elaborate a research agenda that proposes [1] examining the role of dynamic capabilities, and [2] accounting for ethical issues as important avenues for future strategic IS research on digital transformation.

1,787 citations

01 Jan 2017

1,168 citations

Posted Content
TL;DR: In this article, the role of trust encompasses the exchanges and interactions of a retail bank with its customers on various dimensions of online banking and lays stress on the bank-to-customer exchanges taking place through the technological interface.
Abstract: The role of trust encompasses the exchanges and interactions of a retail bank with its customers on various dimensions of online banking. Specifically lays stress on the bank-to-customer exchanges taking place through the technological interface. Hypothesizes shared value, communication and opportunistic behaviour as antecedents to trust. Trust and commitment also have a causal relationship. Proposes and empirically tests five hypotheses with a sample of 510 Internet users of various profiles in India. Develops a structural equation model (Lisrel) and establishes all hypotheses. Observes that shared value is most critical to developing trust as well as relationship commitment. Communication has a moderate influence on trust, while opportunistic behaviour has significant negative effect. Also finds higher perceived trust to enhance significantly customers' commitment in online banking transaction. An important contribution concerns how trust is developed and sustained over different levels of customer relationship in online banking. The future commitment of the customers to online banking depends on perceived trust.

648 citations

Journal ArticleDOI
TL;DR: In this paper, the authors proposed a method to solve the problem of unstructured data in the form of a set of graph-based models.Article history: Received January 14, 2014 Accepted 10 June 2014 Available online June 2
Abstract: Article history: Received January 14, 2014 Accepted 10 June 2014 Available online June 2

517 citations

Journal ArticleDOI
TL;DR: In this paper, consumer innovativeness is used as a variable to positively influence internet banking adoption both directly and reducing consumer perceived risk by using structural equation modelling techniques, and the impact of consumer innovATiveness and risk on internet banking usage has been tested through structural equation modeling techniques.
Abstract: Purpose – The purpose of this paper is to analyse how consumer innovativeness can be used as a variable to positively influence internet banking adoption both directly and reducing consumer perceived risk.Design/methodology/approach – The impact of innovativeness and risk on internet banking adoption has been tested through structural equation modelling techniques. The sample consists of 511 Spanish internet banking services users accessed through an internet survey. Risk has been measured as a formative construct.Findings – Results reveals consumer innovativeness as a key construct to improve e‐banking adoption both directly and by its effective role in reducing consumer risk perception of using internet channel in the financial services context.Practical implications – Practical guidelines are provided to bank managers on how to use consumer innovativeness level as a segmentation variable to increase the use of internet banking among actual customers who are non users or light users of the electronic ch...

340 citations

Trending Questions (3)
How does digital technology impact the banking sector?

Digital technology positively impacts the banking sector by enhancing customer service, improving revenue through flexible products, and fostering customer-bank relationships, especially in developing countries.

What is the relevance of digital transformation in the banking sector?

The paper discusses the relevance of digital transformation in the banking sector, stating that it has brought benefits such as improved customer service and increased deposits and loan sales.

What is the relevance of digital transformation in banking?

The relevance of digital transformation in banking is that it helps banks adapt to the wave of digital transformation and improve their operating revenue by offering flexible products and services.