Maximizing Profits in Commercial Banking: A Holistic Examination of Non-interest Income, Risk Management, and Digital Technologies

Abstract

This research aims to comprehensively examine the intricate relationships among non-interest income, risk management, digital technologies, profit maximization, and commercial banking revenue streams. By analyzing empirical data from various financial institutions, the study aims to elucidate how diversification into non-interest income streams influences risk profiles and overall financial stability. Furthermore, it explores the role of digital technologies in enhancing risk management strategies and driving profitability. This research explores how non-interest income, risk management, and digital technologies collectively impact profit maximization and revenue generation in commercial banks, addressing gaps in understanding these relationships. The findings provide insights for enhancing adaptive strategies and theoretical frameworks within commercial banking literature. Employing a mixed-methods approach, the study begins with a thematic literature review to establish a theoretical foundation. Thematic analysis of the literature informs the development of interview questions for in-depth semi-structured interviews with 14 industry experts, providing rich qualitative data. The research adopts a thematic frequency analysis methodology to categorize and interpret both the literature and interview findings, ensuring a holistic exploration of the research objectives. Findings reveal a complex interdependence between digital technologies, non-interest income, risk management, profit maximization, and commercial banking revenue streams, with digital transformations emerging as pivotal drivers. The study underscores the importance of adaptive risk management amid cybersecurity threats and strategic corporate social responsibility integration for long-term financial success. Methodological limitations include the small sample size of experts and potential biases in qualitative interpretations. Implications extend to banking practitioners navigating the evolving landscape and policymakers shaping regulatory frameworks to foster resilience and innovation.