The Impact of Digital Transformation on Performance: Evidence from Vietnamese Commercial Banks

Trang, Doan; Pham, Ha An Thi; Thalassinos, Eleftherios; Le, Hoang Anh

doi:10.3390/jrfm15010021

Cited by 59 publications

(54 citation statements)

References 27 publications

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“…The market share of the individual banks were effected due to the adoption of neobanking. This is consistent with past studies where digital transformation was significant in explaining bank performance (Do et al, 2022;Wadesango and Magaya, 2020;Gupta et al, 2020). Significance of the interest rate also corroborates that monetary policy had an impact of on market share of the banks.…”

Section: Emirates Nbd (Enbd)supporting

confidence: 91%

“…Digital transformation, in terms of capital and development level of science and technology, has been shown to have a positive effect on performance of Vietnamese commercial banks and the impact was greater for larger commercial banks (Do et al, 2022). This was confirmed by Gupta et al, (2020) who showed that digitalization leads to better performance as it can increase productivity and decrease costs.…”

Section: Literature Reviewmentioning

confidence: 85%

“…Studies on impact of digital banking services on performance of commercial banks have confirmed an increase in ROA (Wadesango and Magaya, 2020) while the impact of digital transformation on bank size was explored by Do et al, (2022). Studies by the National Bureau of Economics Research, USA, have found that productivity for financial services firms improves after adopting digital technologies improvements (Philippon, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

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Ideal Self-Congruence: Neobanking by Traditional Banks and the Impact on Market Share - A Case of Uae Banks

Banerjee

Majumdar

Albastaki

2022

J. Professional Business Review

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Purpose: The aim of this study is to examine the effect of adopting neobanking on the market share of traditional banks in the UAE and test the influence of financial performance indicators on the banks’ market share after the digital transformation. Theoretical framework: The financial service sector has been undergoing major transformation due to technological developments and innovations in terms of operating efficiency, client acquisition and organizational structure. Banks are accelerating digital transformation in an attempt to enhance digital presence, lower costs and gain market share. Neobanking is a recent innovation in the Fintech space that has disrupted the financial services sector. Design/methodology/approach: This study employs published data of quarterly financial statements from 2012- 2021. Chow Test was applied, with known structural breaks in the data, based on the implementation of neobanking and our results are based on pooled regression. Findings: The results reveal that neobanking has influenced the bank specific factors and those factors have affected the market share. NPL, ROE and NIM are critical for the market share with each variable affecting all banks contrarily. This paper further identifies that NPL and NIM has a favourable impact on the market share of only one bank. Cost efficiency has no effect on the market share of the banks in the period after launching neobanking. Research, Practical & Social implications: The study has important implications for the management of banks as the results affirm that structural changes made to adopt digital transformation by firms is the key to derive the favorable effects in terms of increased revenue, profitability and lower credit risk. Originality/value: Neobanking is the most recent disruptor in the financial services sector and effect of digitalization in banking sector is becoming the focus of literature of commercial banks. This paper provides insights into bank specific variables that impact financial performance after its digital transformation.

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Section: Emirates Nbd (Enbd)supporting

confidence: 91%

Section: Literature Reviewmentioning

confidence: 85%

Section: Literature Reviewmentioning

confidence: 99%

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Ideal Self-Congruence: Neobanking by Traditional Banks and the Impact on Market Share - A Case of Uae Banks

Banerjee

Majumdar

Albastaki

2022

J. Professional Business Review

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“…In another study by Stefanovic et al (2021), the relationship between digitalization and sustainable development in the Serbian banking sector showed that digitalization positively affects banks' return on equity and helps banks remain profitable even under the conditions of the global COVID-19 pandemic. Finally, Do et al (2022) found that digital transformation has a positive effect on the work of Vietnamese commercial banks, and the strength of the positive influence is directly proportional to the scale of the bank. Based on these arguments, there is mixed evidence of the relationship between economic growth, Banks Credit to the Private Sector and digitalization; hence this study examines the moderating role of digitalization in the relationship between economic growth and bank credit to the private sector.…”

Section: Economic Growth Banks' Credit To Private Sector and Digitali...mentioning

confidence: 98%

Banks' credit to the private sector and economic growth in Nigeria: The moderating role of digitalization

Amali

Alymkulova

Ejila³

2023

JGEB

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Inspired by the desire to take a unique trajectory with the greater goal of new knowledge addition, this study examined the moderating effect of digitalization on the triangular relationship between digitalization, banks’ credit to private sector and economic growth in Nigeria for 2009 – 2021. The highly debatable direction of the relationship between credit to the private sector and economic growth in Nigeria has remained unresolved; by throwing digitalization in the mix, this study seeks to ascertain if there is a substantial shift in the direction of the subsisting argument with refence to Nigeria. The Autoregressive Distributed Lag (ARDL) approach was applied due to the mixed order of integration results obtained from the Unit Roots Test, which accounted for some structural breaks. For this study, the long-run results carry more prominence than the short-run since there is inherent room for adjustments. The empirical results show that private sector credit has a positive and significant impact on economic growth in Nigeria in the short run. However, in the long run, credit to private sector has a positive and insignificant impact on economic growth in Nigeria. The results also revealed that ddigitalization does not moderate the effect of banks' credit to the private sector on economic growth in Nigeria for the period reviewed. Because of the strategic role of financial intermediation played by deposit money banks, the paper supports the ongoing efforts of the Central Bank of Nigeria (CBN) in deepening the integration of digitalization into the financial services sector.

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“…For a long time, experts have been curious about how digital transformation affects commercial banks' ability to create value. The distribution of digital transformation to company performance has proven to be a challenge for researchers and managers even though many commercial banks have invested significant time and resources into the topic (Do et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Digital Banking Transformation and Performance-Where Do We Stand?

HAKIZIMANA¹,

Wairimu²,

Stephen³

2023

IJMRES

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Every day an increasing number of business ventures are founded all over the world, however, these businesses require financial services to prosper. The conventional banking model though most relied upon by businesses the entry of digital banking is transforming the banking landscape. This paper focused on digital Banking Transformation and performance. Existing secondary data on Digital Banking Transformation and Performance was examined using scoping review by searching on Google Scholar and other respective online libraries for articles about digital banking transformation. The findings indicated that the vast majority of commercial banks have put in place various approaches to ensure trade and investment. Commercial banks pursue access to financial services with the primary goal of expanding their customer base and, as a result, enhancing funds and lending records. However, increased commercial enclosure clues to an increase in Non-Performing Loans (NPLs) which jeopardizes commercial bank solidity by increasing commercial bank credit danger. The study recommended that for appropriate bank lending survival and performance, banks should improve their use of digital access, digital channels, digital value and financial Inclusion as it has recently been proved that they have an impact on the financial efficiency and performance of banks. For proper commercial bank survival and prosperity, more focus should be placed on continuing to increase the application of Debit/Credit Cards and ATM financial services, especially when working with point-of-sale money transfers, particularly in supermarkets, stores, and retail locations. As it has been demonstrated, banks need to use debit cards through effective monitoring initiatives to reduce unnecessary operational and labour costs. The governments should also assist commercial banks in combating technological crimes, hinder not only the financial system but also other businesses, thereby influencing the banking system. Keywords: Digital Access, Digital Banking Transformation, Digital Channels, Digital Value, Financial Inclusion, Regulatory policies and Performance.

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The Impact of Digital Transformation on Performance: Evidence from Vietnamese Commercial Banks

Cited by 59 publications

References 27 publications

Ideal Self-Congruence: Neobanking by Traditional Banks and the Impact on Market Share - A Case of Uae Banks

Ideal Self-Congruence: Neobanking by Traditional Banks and the Impact on Market Share - A Case of Uae Banks

Banks' credit to the private sector and economic growth in Nigeria: The moderating role of digitalization

Digital Banking Transformation and Performance-Where Do We Stand?

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