This study explores different perspectives on the definition of digital transformation on banking sector. Ultimately, to facilitate future research, we summarize several research techniques used in the literature reviewed. We set well-established selection criteria to select relevant literature from Scopus, the most recognized database. Based on the bibliometric information of the papers selected, we did a bibliometric analysis. Afterward, we reviewed the literature. The results of this study are There are mainly four findings. Firstly, according to the bibliometric analysis, literature about banking digital transformation is growing exponentially. Secondly, banking digital transformation is the use of new digital technologies to enable significant business improvements in augmenting customer experience, streamlining operations, or creating new business models with innovative breakthroughs that alter conventional banking practice. Thirdly, there are some financial reasons for implementing banking digital transformation which are to increase customer satisfaction, competitiveness, efficiency, and profitability. Finally, key dimensions of banking digital transformation involve individuals, processes, technology, content, and state, while the strategy for the successful banking digital transformation should consider technology, value creation, structural change, and financial aspects

The restricted activities during Covid -19 pandemic encourage people to spend more on online activities. One of the most shift activities happened in the banking sector activities. The high demand for digital services encourages banks to accelerate the transformation and development of their mobile banking to be more advanced. One exciting thing about the development of digital banks in Indonesia is the phenomenon of the high valuation of digital banks compared to other conventional banks. This study will answer whether the corporate action taken by large companies to buy small banks and transform them into digital banks is a factor in the high valuation of these digital banks. Moreover, will the high valuation persist or move into the normal range of other banks? This study used a quantitative research method. The approach of research used is a regression statistic model. Based on the Hausman test of 3 models used in this research, the best model used to identify the result is the fixed-effect model. The result showed a negative correlation between DER and PBV which was used as the variable in this research. There are many problems found in the ancient test statistic. There is no multicollinearity, autocorrelation, and heteroskedasticity. So, the result of fixed-effect regression in this research showed the BLUE analysis result.