Digital Transformation in Commercial Banking: Trends, Challenges, and Future Directions

Abstract

This systematic literature review provides an in-depth exploration of digital transformation in commercial banking, with a focused emphasis on Scopus-indexed research articles. Employing the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) methodology, our investigation methodically navigated the extensive database to meticulously curate a final selection of 56 published articles composed in the English language. Through exacting screening processes and innovative data visualization techniques facilitated by VOS viewer, this systematic review aspired to delineate and showcase the thematic evolution within the literature on digital transformation in commercial banks. This review provides insights into the notable effects of emerging technologies like blockchain, artificial intelligence, and big data on how traditional banking practices, customer interactions, and risk evaluation are evolving, based on a detailed examination of 56 scholarly articles from the years 2019 to 2024. The analysis highlights the drivers of digital transformation, including evolving customer expectations, competition from FinTechs, regulatory mandates, and cost efficiency. The review underscores the prominence of journal-based research, with a focus on sustainability and finance-oriented themes, while identifying key geographical contributions and emerging topics like financial inclusion, innovation, and FinTech. This study offers a comprehensive synthesis of existing knowledge, providing a robust foundation for future research in digital transformation within commercial banking. This study stands as a valuable resource for scholars, practitioners, and policymakers alike who are keenly interested in the dynamic and evolving field of digitalization in retail banking.