Analysis of Digital Transformation and the Future of Banking: Challenges and Opportunities in an Era of Technological Advancement
Abstract
Abstract
Digital transformation has had a significant impact on the banking industry, influencing the way banks operate and interact with customers. In the current era of technological advancement, banking faces new challenges and unlimited opportunities. This study aims to analyze digital transformation for the future of banking, focusing on the challenges and opportunities faced. The research method used is literature study and secondary data analysis. The research results show that digital transformation has changed the banking landscape in various ways. The main challenges faced by banks are data security and privacy, rapid technological developments, changes in consumer behavior, and increasingly fierce competition. To overcome this challenge, banks need to adapt quickly and develop innovative strategies. Overall, digital transformation brings challenges and opportunities for banking in an era of technological advances. Banks that are able to overcome these challenges and take advantage of existing opportunities will become leaders in the future banking industry.
Keywords: Banking;Digital Transformation;Technologi.
References
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Salerno, D., Sampagnaro, G., & Verdoliva, V. (2022). Fintech and IPO underpricing: An explorative study. Finance Research Letters, 44, Article 102071. https://doi.org/10.1016/j.frl.2021.102071
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Vial. 2019. “Understanding Digitl Transformation: A Review and a Research Agenda.†Journal of Strategic Information Systems 118-144.
Zavolokina, L., Dolata, M., & Schwabe, G. (2016). The FinTech phenomenon: Antecedents of financial innovation perceived by the popular press. Financial Innovation, 2(1), 1–16. https://doi.org/10.1186/s40854-016- 0036-7
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Barrett, M., Davidson, E., Prabhu, J., and Vargo. 2015. “Service Innovation in The Digital age: Key Contribution and Future Direction.†135-154.
Boot, A., Hoffmann, P., Laeven, L., & Ratnovski, L. (2021). Fintech: what's old, what's new? Journal of Financial Stability, 53, Article 100836. https:// doi.org/10.1016/j.jfs.2020.100836
Chiu, I. H. (2017). A new era in fintech payment innovations? A perspective from the institutions and regulation of payment systems. Law, Innovation and Technology, 9(2), 190–234. https://doi.org/10.1080/ 17579961.2017.1377912
Dian, Zahra. 2022. Transformasi Digital dalam Perbankan Syariah.
Dratva, R. (2020). Is open banking driving the financial industry towards a true electronic market? Electronic Markets, 30(1), 65–67. https://doi.org/ 10.1007/s12525-020-00403-w
Fasano, F., & Cappa, F. (2022). How do banking fintech services affect SME debt? Journal of Economics and Business, 106070. https://doi.org/10.1016/ j.jeconbus.2022.106070
Gai, K., Qiu, M., & Sun, X. (2018). A survey on FinTech. Journal of Network and Computer Applications, 103, 262–273. https://doi.org/10.1016/ j.jnca.2017.10.011
Gimpel, H., Rau, D., & Roglinger, M. (2018). Understanding FinTech startups–a taxonomy of consumer-oriented service offerings. Electronic Markets, 28(3), 245–264. https://doi.org/10.1007/s12525-017-0275-0 Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services. Journal of Management Information Systems, 35(1), 220–265. https://doi.org/10.1080/07421222.2018. 1440766
Gomber, P., Koch, J. A., & Siering, M. (2017). Digital finance and FinTech: Current research and future research directions. Journal of Business Economics, 87(5), 537–580. https://doi.org/10.1007/s11573-017-0852-x
Guo, Y., & Liang, C. (2016). Blockchain application and outlook in the banking industry. Financial Innovation, 2(1), 24. https://doi.org/10.1186/ s40854-016-0034-9
Hanafizadeh, P., & Amin, M. G. (2022). The transformative potential of banking service domains with the emergence of FinTechs. Journal of Financial Services Marketing, 1–37. https://doi.org/10.1057/s41264-022- 00161-0
Heppelmann, Porter M E and. t.thn. “How Smart Connected Products are Transforming Competition.†Harvard Business Review 64-88.
Hornuf, L., Klus, M. F., Lohwasser, T. S., & Schwienbacher, A. (2020). How do banks interact with fintech startups? Small Business Economics, 1–22. https://doi.org/10.1007/s11187-020-00359-3\
Jagtiani, J., & Lemieux, C. (2018). Do fintech lenders penetrate areas that are underserved by traditional banks? Journal of Economics and Business, 100, 43–54. https://doi.org/10.1016/j.jeconbus.2018.03.001
Jung, D., Dorner, V., Weinhardt, C., & Pusmaz, H. (2018). Designing a roboadvisor for risk-averse, low-budget consumers. Electronic Markets, 28(3), 367–380. https://doi.org/10.1007/s12525-017-0279-9
Katsiampa, P., McGuinness, P. B., Serbera, J. P., & Zhao, K. (2022). The financial and prudential performance of Chinese banks and Fintech lenders in the era of digitalization. Review of Quantitative Finance and Accounting, 1–53. https://doi.org/10.1007/s11156-021-01033-9
Kohtamaki, M., Parida, V., Oghazi, P., Gebauer, H., & Baines, T. (2019). Digital servitization business models in ecosystems: A theory of the firm. Journal of Business Research, 104, 380–392. https://doi.org/10.1016/ j.jbusres.2019.06.027
Kou, G., Olgu Akdeniz, O., Din¸ ¨ cer, H., & Yuksel, S. (2021). Fintech investments in European banks: A hybrid IT2 fuzzy multidimensional decision-making approach. Financial Innovation, 7(1), 1–28. https:// doi.org/10.1186/s40854-021-00256-y
Liu, J., Li, X., & Wang, S. (2020). What have we learnt from 10 years of fintech research? A scientometric analysis. Technological Forecasting and Social Change, 155, Article 120022. https://doi.org/10.1016/ j.techfore.2020.120022
Liu, J., Li, X., & Wang, S. (2020). What have we learnt from 10 years of fintech research? A scientometric analysis. Technological Forecasting and Social Change, 155, Article 120022. https://doi.org/10.1016/ j.techfore.2020.120022
Leong, C., Tan, B., Xiao, X., Tan, F. T. C., & Sun, Y. (2017). Nurturing a FinTech ecosystem: The case of a youth microloan startup in China. International Journal of Information Management, 37(2), 92–97. https:// doi.org/10.1016/j.ijinfomgt.2016.11.006
M. K. M. Nasution, â€Basis sains dan teknologi sebagai basis perekonomianâ€, Suara USU, edisi 24 - April, 2001. 9.
Najaf, K., Subramaniam, R. K., & Atayah, O. F. (2022). Understanding the implications of FinTech Peer-to-Peer (P2P) lending during the COVID-19 pandemic. Journal of Sustainable Finance & Investment, 12(1), 87–102. https://doi.org/10.1080/20430795.2021.1917225
Nguyen, L., Tran, S., & Ho, T. (2021). Fintech credit, bank regulations and Bank performance: A cross-country analysis. Asia-Pacific Journal of Business Administration. https://doi.org/10.1108/apjba-05-2021-0196
Puschmann, T. (2017). Fintech. Business & Information Systems Engineering, 59(1), 69–76. https://doi.org/10.1007/s12599-017-0464-6
Salerno, D., Sampagnaro, G., & Verdoliva, V. (2022). Fintech and IPO underpricing: An explorative study. Finance Research Letters, 44, Article 102071. https://doi.org/10.1016/j.frl.2021.102071
Tao, R., Su, C. W., Naqvi, B., & Rizvi, S. K. A. (2022). Can fintech development pave the way for a transition towards low-carbon economy: A global perspective. Technological Forecasting and Social Change, 174, Article 121278. https://doi.org/10.1016/j.techfore.2021.121278
Vial. 2019. “Understanding Digitl Transformation: A Review and a Research Agenda.†Journal of Strategic Information Systems 118-144.
Zavolokina, L., Dolata, M., & Schwabe, G. (2016). The FinTech phenomenon: Antecedents of financial innovation perceived by the popular press. Financial Innovation, 2(1), 1–16. https://doi.org/10.1186/s40854-016- 0036-7
Zhao, J., Li, X., Yu, C. H., Chen, S., & Lee, C. C. (2022). Riding the FinTech innovation wave: FinTech, patents and Bank performance. Journal of International Money and Finance, 122, Article 102552. https://doi.org/ 10.1016/j.jimonfin.2021.102552
Published
2024-05-19
How to Cite
NURYANA, Ida.
Analysis of Digital Transformation and the Future of Banking: Challenges and Opportunities in an Era of Technological Advancement.
JMK (Jurnal Manajemen dan Kewirausahaan), [S.l.], v. 9, n. 1, p. 51-60, may 2024.
ISSN 2656-0771.
Available at: <https://ejournal.uniska-kediri.ac.id/index.php/ManajemenKewirausahaan/article/view/4565>. Date accessed: 21 dec. 2024.
doi: https://doi.org/10.32503/jmk.v9i1.4565.
Section
Artikel Ilmiah
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