Digital Transformation of the Banking Industry in Developing Countries




Digital, Transformation, Banking Industry, Developing Countries, Vietnam


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.


Download data is not yet available.


Aldás-Manzano, J., Lassala-Navarré, C., Ruiz-Mafé, C., & Sanz-Blas, S. (2009). The role of consumer innovativeness and perceived risk in online banking usage. International Journal of Bank Marketing, 27(1), 53-75.

Alt, R., Beck, R., & Smits, M. T. (2018). FinTech and the transformation of the financial industry. Electronic Markets, 28, 235-243.

Anwar, A., Thongpapanl, N., & Ashraf, A. R. (2021). Strategic imperatives of mobile commerce in developing countries: the influence of consumer innovativeness, ubiquity, perceived value, risk, and cost on usage. Journal of Strategic Marketing, 29(8), 722-742.

Baicu, C. G., Gârdan, I. P., Gârdan, D. A., & Epuran, G. (2020). The impact of Covid-19 on consumer behavior in retail banking. Evidence from Romania. Management & Marketing. Challenges for the Knowledge Society, 15(Special Issue), 534-556.

Bain & Company (2014). Customer loyalty inretail banking: Global edition 2014. Retrieved from Customer loyalty in retail banking 2014pdf.

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' options. Journal of Digital Banking, 2(1), 43-50. https://www. jdb001/2017/00000002/00000001/art00006.

Casaló, L. V., Flavián, C., & Guinalíu, M. (2007). The role of security, privacy, usability, and reputation in the development of online banking. Online Information Review, 31(5), 583-603. Available at:

Chanias, S., Myers, M. D., & Hess, T. (2019). Digital transformation strategy making in pre-digital organizations: The case of a financial services provider. Journal of Strategic Information Systems, 28(2), 17-33.

Choudrie, J., & Vyas, A. (2014). Silver surfers adopting and using Facebook? A quantitative study of Hertfordshire, UK, applied to organizational and social change. Technological Forecasting and Social Change, 89(3), 293-305.

Choudrie, J., Junior, C. O., McKenna, B., & Richter, S. (2018). Understanding and conceptualizing the adoption, use and diffusion of mobile banking in older adults: a research agenda and conceptual framework. Journal of Business Research, 88(4), 449-465. https://doi:10.1016/j.jbusres.2017.11.029.

Clement, J. (2020). Number of monthly active Facebook users worldwide as of 1st quarter 2020. Retrieved from

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), 2032-2043.

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 Business and Management, 6(4), 161.

Gasser, U., Gassmann, O., Hens, T., Leifer, L., Puschmann, T., & Zhao, L. (2017). Digital Banking 2025. Research Platform Alexandria. Retrieved from:

Glover, S., & Benbasat, I. (2010). A comprehensive model of the perceived risk of e-commerce transactions. International Journal of Electronic Commerce, 15(2), 47-78.

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 Review, Digital Article. Retrieved from

Jüngera, M., & Mietznerb, M. (2020). Banking goes digital: The adoption of FinTech services by German Households. Finance Research Letters, 34(3), 13-24. https://doi:10.1016/

Kitsios, F., Giatsidis, I., & Kamariotou, M. (2021). Digital Transformation and Strategy in the Banking Sector: Evaluating the Acceptance Rate of E-Services. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 204-215.

Koroleva, E., & Kudryavtseva, T. (2020). Factors influencing digital bank performance. The 2018 International Conference on Digital Science, 325-333. https://doi. org/10.1007/978-3-030-37737-3_29.

Krasonikolakis, I., Tsarbopoulos, M., & Eng, T. Y. (2020). Are incumbent banks bygones in the face of digital transformation? Journal of General Management, 46(1), 60-69.

Lee, M. C. (2009). Factors influencing the adoption of internet banking: An integration of TAM and TPB with perceived risk and benefit. Electronic Commerce Research and Applications, 8(3), 130-141.

Mangin, J. P., Lévy, B., Calvo-Porral, C., Mesly, O., Telahigue, I., & Trudel, M. (2014). The moderating role of risk, security, and trust applied to the tam model in Canada's offer of banking financial services. Journal of Internet Banking and Commerce, 19(2), 2-21.

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 for digital transformation in financial service ecosystems. Journal of Research in Interactive Marketing, 15(2), 200-222.

Pramanik, H. S., Kirtania, M., & Pani, A. K. (2019). The essence of digital transformation - Manifestations at large financial institutions from North America. Future Generation Computer Systems, 95(4), 323-343.

Schuelke-Leech, B. A. (2018). A model for understanding the orders of magnitude of disruptive technologies. Technological Forecasting and Social Change, 129(3), 261-274.

Sharif, A., & Raza, S. A. (2017). The influence of hedonic motivation, self-efficacy, trust, and habit on the adoption of internet banking: A case of a developing country. International Journal of Electronic Customer Relationship Management, 11(1), 1-22.

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 to understand insurance value creation in a digital world. Electronic Markets, 28(3), 287-305.

Tsindeliani, I. A., Proshunin, M. M., Sadovskaya, T. D., Popkova, Z. G., Davydova, M. A., & Babayan, O. A. (2022). Digital transformation of the banking system in the context of sustainable development. Journal of Money Laundering Control, 25(1), 165-180.

Udin, U. (2023). Linking transformational leadership to organizational learning culture and employee performance: The mediation-moderation model. International Journal of Professional Business Review, 8(3), 1-17.

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 and IT-enabled organizational transformation. Journal of the Association for Information Systems, 22(1), 102–129.

Yazid, Z. E., Zainol, Z., & Bakar, J. A. (2023). E-commerce via mobile banking: contemporary shariah issues and ways to address them. International Journal of Professional Business Review, 8(1), 1-14.

Zandhessami, H., & Geramayeh, P. (2014). Determinants of user acceptance of internet banking: An empirical study. Management Science Letters, 4(7), 1369-1374.

Zhao, Q., Tsai, P. H., & Wang, J. L. (2019). Improving financial service innovation strategies for enhancing China's banking industry competitive advantage during the fintech revolution: A hybrid MCDM model. Sustainability, 11(5), 1105-1419.




How to Cite

Tran, P. T. T., Le, T. T. H., & Phan, N. H. T. (2023). Digital Transformation of the Banking Industry in Developing Countries. International Journal of Professional Business Review, 8(5), e01503.