IDEAS home Printed from https://ideas.repec.org/a/pal/jofsma/v29y2024i2d10.1057_s41264-023-00223-x.html
   My bibliography  Save this article

Financial institutions digital transformation: the stages of the journey and business metrics to follow

Author

Listed:
  • Aristides Papathomas

    (University of Western Macedonia)

  • George Konteos

    (University of Western Macedonia)

Abstract

This paper examines the stages of the digital transformational path that lies in front of incumbent banks in their conversion into digitally driven institutions and contributes by providing clarity in the parameters that define each stage and the key metrics to be tracked. It is a general review paper, with main tools employed the relevant scholar and grey literature & field observations. The paper identifies three phases for banking institutions’ digital transformation and proceeds with defining the characteristics of the phases and the distinct actions required for an institution to progress through them, employing a set of proposed key tracking indicators. The outcome adds to the, rather limited, academic literature on the subject and can be applied to all relevant banking institutions. Research needs further insides to articulate better the findings and expand them on a cross-examination of relevant theories and approaches. This paper aims at contributing to a growing, contemporary discussion, hopefully assisting in greater collaboration between practitioners and academics.

Suggested Citation

  • Aristides Papathomas & George Konteos, 2024. "Financial institutions digital transformation: the stages of the journey and business metrics to follow," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 590-606, June.
    • Handle: RePEc:pal:jofsma:v:29:y:2024:i:2:d:10.1057_s41264-023-00223-x
    DOI: 10.1057/s41264-023-00223-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41264-023-00223-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41264-023-00223-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Betül AKAN & Funda ER ÜLKER & Agah Sinan ÜNSAR, 2016. "The Effect Of Organizational Communication Towards Resistance To Change: A Case Study In Banking Sector," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 14(1), pages 53-67, May.
    2. Wendy C.Y. Li & Makoto Nirei & Kazufumi Yamana, 2018. "Value of Data: There’s No Such Thing as a Free Lunch in the Digital Economy," BEA Working Papers 0164, Bureau of Economic Analysis.
    3. Vinit Parida & David Sjödin & Wiebke Reim, 2019. "Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    4. Gebauer, Heiko & Fleisch, Elgar & Lamprecht, Claudio & Wortmann, Felix, 2020. "Growth paths for overcoming the digitalization paradox," Business Horizons, Elsevier, vol. 63(3), pages 313-323.
    5. Mi Zhou & Dan Geng & Vibhanshu Abhishek & Beibei Li, 2020. "When the Bank Comes to You: Branch Network and Customer Omnichannel Banking Behavior," Information Systems Research, INFORMS, vol. 31(1), pages 176-197, March.
    6. Zhang, Zhengyi & Jin, Jun & Li, Shijing & Zhang, Yuanmin, 2023. "Digital transformation of incumbent firms from the perspective of portfolios of innovation," Technology in Society, Elsevier, vol. 72(C).
    7. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    8. Aristides Papathomas & George Konteos, 2022. "Digital Transformation Journey for Incumbent Banks: The Case Study of Greece," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 14(2), pages 1-13, December.
    9. de Reuver, Mark & Sørensen, Carsten & Basole, Rahul C., 2018. "The digital platform: a research agenda," LSE Research Online Documents on Economics 80669, London School of Economics and Political Science, LSE Library.
    10. Shah, Mahmood Hussain & Siddiqui, Feroz A., 2006. "Organisational critical success factors in adoption of e-banking at the Woolwich bank," International Journal of Information Management, Elsevier, vol. 26(6), pages 442-456.
    11. Sudipa Majumdar & Vijay Pujari, 2022. "Exploring usage of mobile banking apps in the UAE: a categorical regression analysis," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(3), pages 177-189, September.
    12. Key Pousttchi & Maik Dehnert, 2018. "Exploring the digitalization impact on consumer decision-making in retail banking," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 265-286, August.
    13. Ferreira, João J.M. & Fernandes, Cristina I. & Ferreira, Fernando A.F., 2019. "To be or not to be digital, that is the question: Firm innovation and performance," Journal of Business Research, Elsevier, vol. 101(C), pages 583-590.
    14. Md. Alamgir Hossain & Nusrat Jahan & Minho Kim, 2021. "A multidimensional and hierarchical model of banking services and behavioral intentions of customers," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 18(4), pages 845-867, May.
    15. Maartje Henderikx & Jol Stoffers, 2022. "An Exploratory Literature Study into Digital Transformation and Leadership: Toward Future-Proof Middle Managers," Sustainability, MDPI, vol. 14(2), pages 1-18, January.
    16. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    17. Karolin Frankenberger & Tobias Weiblen & Michaela Csik & Oliver Gassmann, 2013. "The 4I-framework of business model innovation: a structured view on process phases and challenges," International Journal of Product Development, Inderscience Enterprises Ltd, vol. 18(3/4), pages 249-273.
    18. Simran Jit Kaur & Liaqat Ali & M. Kabir Hassan & Md Al-Emran, 2021. "Adoption of digital banking channels in an emerging economy: exploring the role of in-branch efforts," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 26(2), pages 107-121, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aristides Papathomas & George Konteos, 2022. "Digital Transformation Journey for Incumbent Banks: The Case Study of Greece," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 14(2), pages 1-13, December.
    2. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    3. Thomson, Linus & Sjödin, David & Parida, Vinit & Jovanovic, Marin, 2023. "Conceptualizing business model piloting: An experiential learning process for autonomous solutions," Technovation, Elsevier, vol. 126(C).
    4. Li, Ganglei & Shao, Yunfei, 2023. "How do top management team characteristics affect digital orientation? Exploring the internal driving forces of firm digitalization," Technology in Society, Elsevier, vol. 74(C).
    5. Jinkai Liang & Ke Du & Dandan Chen, 2023. "The Effect of Digitalization on Ambidextrous Innovation in Manufacturing Enterprises: A Perspective of Empowering and Enabling," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    6. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    7. Gerrit Remane & Andre Hanelt & Jan F. Tesch & Lutz M. Kolbe, 2017. "The Business Model Pattern Database — A Tool For Systematic Business Model Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-61, January.
    8. Sebastian Kussl & Andreas Wald, 2022. "Smart Mobility and its Implications for Road Infrastructure Provision: A Systematic Literature Review," Sustainability, MDPI, vol. 15(1), pages 1-20, December.
    9. Anna M. Hansson & Eja Pedersen & Niklas P. E. Karlsson & Stefan E. B. Weisner, 2023. "Barriers and drivers for sustainable business model innovation based on a radical farmland change scenario," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8083-8106, August.
    10. Daniela Ioniță & Ion Alexandru Olteanu, 2023. "SME and digital transformation: a dream too far?," Journal of Emerging Trends in Marketing and Management, The Bucharest University of Economic Studies, vol. 1(1), pages 7-16, April.
    11. Li, Chengming & Huo, Peng & Wang, Zeyu & Zhang, Weiguang & Liang, Feiyan & Mardani, Abbas, 2023. "Digitalization generates equality? Enterprises’ digital transformation, financing constraints, and labor share in China," Journal of Business Research, Elsevier, vol. 163(C).
    12. Sascha Kraus & Alexander Brem & Miriam Schuessler & Felix Schuessler & Thomas Niemand, 2019. "Innovative Born Globals: Investigating the Influence of Their Business Models on International Performance," World Scientific Book Chapters, in: Alexander Brem & Joe Tidd & Tugrul Daim (ed.), Managing Innovation Internationalization of Innovation, chapter 11, pages 275-328, World Scientific Publishing Co. Pte. Ltd..
    13. Ying Wu & Yuanyue Deng, 2024. "Does digital transformation crowd out the employment of lower skill labor?," Bulletin of Economic Research, Wiley Blackwell, vol. 76(3), pages 726-748, July.
    14. Zhou, Dan & Kautonen, Mika & Dai, Weiqi & Zhang, Hui, 2021. "Exploring how digitalization influences incumbents in financial services: The role of entrepreneurial orientation, firm assets, and organizational legitimacy," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    15. Nancy Bocken & Lars Strupeit & Katherine Whalen & Julia Nußholz, 2019. "A Review and Evaluation of Circular Business Model Innovation Tools," Sustainability, MDPI, vol. 11(8), pages 1-25, April.
    16. Payam Hanafizadeh & Parastou Hatami & Morteza Analoui & Amir Albadvi, 2021. "Business model innovation driven by the internet of things technology, in internet service providers’ business context," Information Systems and e-Business Management, Springer, vol. 19(4), pages 1175-1243, December.
    17. Liukai Wang & Caiting Wang & Larisa Yarovaya & Heshu Huang, 2024. "Trade credit and corporate digital transformation: The role of managerial ability," The Financial Review, Eastern Finance Association, vol. 59(3), pages 779-806, August.
    18. Somendra Narayan & Jatinder S. Sidhu & Henk W. Volberda, 2021. "From Attention to Action: The Influence of Cognitive and Ideological Diversity in Top Management Teams on Business Model Innovation," Journal of Management Studies, Wiley Blackwell, vol. 58(8), pages 2082-2110, December.
    19. Bencsik, Barbara & Palmié, Maximilian & Parida, Vinit & Wincent, Joakim & Gassmann, Oliver, 2023. "Business models for digital sustainability: Framework, microfoundations of value capture, and empirical evidence from 130 smart city services," Journal of Business Research, Elsevier, vol. 160(C).
    20. Vinicius Minatogawa & Matheus Franco & Izabela Simon Rampasso & Maria Holgado & Diego Garrido & Hernan Pinto & Ruy Quadros, 2022. "Towards Systematic Sustainable Business Model Innovation: What Can We Learn from Business Model Innovation," Sustainability, MDPI, vol. 14(5), pages 1-35, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jofsma:v:29:y:2024:i:2:d:10.1057_s41264-023-00223-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.