An Accelerated Digital Transformation in the Banking Sector: Propelled by COVID 19 - A Study on JPMorgan

This research aims to investigate the effectiveness of digital transformation and how it can assist people and all other commercial paradigms, especially the financial sector, throughout this global pandemic. The study recommends that businesses should invest in technologies, innovations, processes, data, applications, and workforce as well as customers. Banks should be committed to digital strategies through projects, planning, innovations, optimization, directing, adoption of business/technology models, and communication between business and IT stakeholders, which would improve efficiency and boast service delivery.

An Accelerated Digital Transformation in the Banking
Sector: Propelled by COVID 19
- A Study on JPMorgan
Master of Science in Digital Business
PLAGIARISM STATEMENT
Based on my study and research, I certify that this project is my work. I have
acknowledged all materials and sources used in its preparation, whether books, articles, reports,
lecture notes, and all other kind of documents, electronic or personal communication. I also
certify that this project has not previously been submitted for assessment in any other unit,
except where specific permission has been granted from all unit coordinators involved, or at any
1

additional time in this unit, and that I have not copied in part or whole or otherwise plagiarized
the works of other students or persons.
Name: David Sodeinde Date:
Signature:
ABSTRACT
Globalization and rapid technological advancement have altered a lot of processes and
services across the world. Increasingly, in many sectors of the state, traditional processes are
giving way to digital processes and transformation in production cycle and customer
relationship, particularly in service delivery. This research was conducted to investigate the
2

effectiveness of digital transformation and how this can assist banks in making further decisions
that drive transformational changes for efficient services on both customers and banks.
The positivist research philosophy was adopted because the study used the qualitative
method to provide theoretical and reliable information related to a particular subject area. Data
for the study was generated from information on relevant topics around the subject through
sources such as books, articles, journals, and relevant online materials.
The study found that the global COVID-19 pandemic created a challenge for the banking
sector especially in carrying out efficient services to customers. It was also found that JPMorgan
Chase Bank underwent a significant level of digital transformation of its services to its customers
in order to remain efficient and retain customers’ trust and loyalty. The study therefore
recommended that businesses should invest in technologies, innovations, processes, data,
applications, and workforce as well as customers. Banks should be committed to digital
strategies through projects, planning, innovations, optimization, directing, adoption of
business/technology models, and communication between business and IT stakeholders, which
would improve efficiency and boast service delivery.
It was recommended that JPMorgan Chase Bank, alongside other banks should explore
more IT-driven innovative technologies such as AI, orchestration, machine learning, mobility,
integration, analytics and intelligence, open banking APIs, cloud computing, robotics, and
automation. In addition, the adoption of security best practices, frameworks, and standards from
National Institute of Standards and Technology (NIST) and ISO 27001, amongst others, should
continually be matured to operationalise a continuous, successful, predictive, and secured
business outcome. These capabilities will elevate digital customer experiences at a speed and
scale, and distinctions will be made amongst banks during and beyond the covid-19 pandemic.
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION...................................................................................................................5
1.1 Research Background........................................................................................................................5
1.2 Research Rationale............................................................................................................................7
1.3 Research Aim.....................................................................................................................................8
1.4 Research Objectives...........................................................................................................................8
3

1.5 Research Questions...........................................................................................................................8
CHAPTER TWO: LITERATURE REVIEW..........................................................................................................9
2.1 Impact of the Digital Transformation on the Banks and People during COVID-19 Pandemic............9
2.2 Different Perceptions of Banking Organizations regarding the Shift toward Digital Transformation
...............................................................................................................................................................17
2.3 Effective Ways to Implement Features of Digital Transformation in the Financial Sector...............24
CHAPTER THREE: METHODOLOGY.............................................................................................................28
3.1 Introduction.....................................................................................................................................28
3.2 Research Philosophy........................................................................................................................28
3.3 Research Approach..........................................................................................................................29
3.4 Research Choice...............................................................................................................................29
3.5 Research Strategy............................................................................................................................29
3.6 Data collection methods..................................................................................................................30
3.7 Sampling..........................................................................................................................................32
3.8 Data Analysis....................................................................................................................................33
3.10 Ethical Considerations....................................................................................................................34
CHAPTER FOUR: RESULT AND DISCUSSION...............................................................................................35
4.1 Introduction.....................................................................................................................................35
4.2 Statistical analysis of closed-ended questions.................................................................................35
4.2.1 Frequency Table........................................................................................................................35
4.2.2 non-statistical analysis of open-ended questions.....................................................................43
4.3 Discussion........................................................................................................................................44
4.3.1 Impact of digital transformation on banks and people during COVID-19.................................44
4.3.2 Different perceptions of banking organizations towards digital transformation......................46
4.3.3 Effective ways to implement the features of digital transformation in the financial sector.....47
CHAPTER FIVE: CONCLUSION AND RECOMMENDATION...........................................................................50
5.1 Conclusion.......................................................................................................................................50
5.2 Recommendations...........................................................................................................................52
5.3 Evaluation of study and scope.........................................................................................................55
5.4 Further Research Areas....................................................................................................................56
REFERENCES..............................................................................................................................................57
APPENDIX..................................................................................................................................................63
Ethics form Taught-Ethics-Application-Form-SBS..................................................................................63
Close-ended questions...........................................................................................................................71
4

CHAPTER ONE: INTRODUCTION
1.1 Research Background
Digital transformation is fundamentally the process of leveraging digital technologies to
develop or change existing cultures, processes, and customer experiences (Haralayya, 2021). It
helps in modifying businesses and meeting the needs of the market. Digital transformation is
directly linked with the implementation of digital technology within an organization to improve
business and innovation and create value for the consumers (Nguyen, 2020). It is all about
evolving the industry through experimenting with advanced technologies and rethinking the
existing problem-solving approaches (Ananda, Devesh, and Al Lawati, 2020). Organizations use
digital technologies to improve their end-user experience (Czerwińska et al., 2021) by leveraging
artificial intelligence (AI), improving on-demand services among others.
5

The financial sector is essential as it mobilizes savings and allots credit across time and
space (Kaur et al., 2021). Moreover, it reduces the risks and costs of developing services and
products and makes necessary contributions for enhancing the living standards. Development in
the financial industry extends beyond financial intermediation and infrastructures, requiring
comprehensive regulatory and supervisory procedures for all the major businesses. Recently,
financial institutions have had to monitor and deal with the impact of the COVID-19 pandemic
focusing on understanding the challenges to economies and societies and their long-term
influence on the financial system. They have mainly considered experts to assist them regarding
banking for making better decisions. (Das, 2020).
In the financial sector, digital transformation is simply a conception that has successfully
become a part of business strategy. It is helpful in financial management, accounting, and
compliance management to reduce human errors involved in the financial sector's risk
management by introducing robust digital strategies (Haralayya, 2021). In the financial industry,
digital transformation has improved the customer's and employees' experiences by helping meet
the deadlines and conducting cost-effective operations. From branch offices to mobile
applications and ATMs, digital transformation provides more convenience and a better
experience; in fact, consumers are gravitating more and more towards obtaining a compelling
digital experience (Dermine, 2016).
COVID-19 pandemic has reshaped the way banks interact with their customers, most
notably in the United States. With more financial institutions than any other country in the
European Union and total market size, most banks in the US are continually innovating to meet
digitization expectations for their customers (Demirgüç-Kunt, Pedraza, and Ruiz-Ortega, 2021).
The result is an enhanced banking experience, accelerating day by day due to the closing down
of bank branches during the pandemic. Although this was evident in banking even before the
epidemic hit, new and more effective innovating strategies were highly required due to COVID-
19 restrictions, lockdown and other social distancing regulations (Kaur et al., 2021).
Clients’ banking expectations were notably accelerated during the development of these
innovative and even disruptive technologies, with the growth of customized services of
significant technology companies (Melnychenko, Volosovych, and Baraniuk, 2020). On the
6

other hand, the extent to which all the banks are offering effective services and maintaining
relevance to the consumers is vital (Etembekov, 2021).
The digitalizing process of banking is also prone to a few system errors, where high
response rates to customer service inquiries are also of great concern and quick loan
distributions. Providing a faultless payment system is necessary as the COVID-19 pandemic has
accelerated branchless banking, mobile banking, and the need to make society cashless (Sonand
et al., 2020). All over the world, more than 55% of the banks are getting into partnerships with
Fintech to provide additional and better services to the clients, such as facilitating on-boarding,
spending on analytics, and others (Disemadi and Shaleh, 2020).
Digitalization mainly tends towards using the overarching term that spans different
dimensions and bank value chain activities (Nguyen, Nguyen, and Nguyen, 2020). The digital
transformation in banking effectively provides a better and timesaving banking experience to
customers, as they can make safe and more accessible payment transactions anywhere and
anytime (Fairooz and Wickramasinghe, 2019).
1.2 Research Rationale
The rationale behind conducting this investigation is to examine the effectiveness of
digital transformation and how this can assist people and all other commercial paradigms,
especially the financial sector during this global pandemic.
Due to the COVID-19 pandemic, people faced the issue of making payments and
transferring money remotely (Harvey, 2016). In banking, digital transformation has been
embraced by banks of all sizes scrambling to implement advanced technologies, entailing
cutting-edge innovations such as AI integration in customer support helplines and broader
spectrums and platforms for sending and receiving money within seconds; a shift that has led to
the provision of digital and online services through several backend modifications needed to
support the transformation.
This investigation has therefore been conducted in both personal and professional
contexts. In the personal context, the study critically examines the digital transformation
employed in the banking sector during the pandemic to help enhance researchers' knowledge
7

regarding digital transformation (Baicu et al., 2020). In the professional context, the study can
help improve an investigator's analytical and research skills.
1.3 Research Aim
This research aims to investigate the effectiveness of digital transformation and how it
can assist people and all other commercial paradigms, especially the financial sector, throughout
this global pandemic.
1.4 Research Objectives
The objectives of this study are to:
 Critically evaluate the impact of the digital transformation on banks and people during
the COVID-19 pandemic in the context of the US banking sector.
 Investigate different perceptions of banking organizations in terms of the shift towards
digital transformation in the US banking sector.
 Identify the challenges of the banks in implementing and aligning with digital
transformations.
 Recommend effective ways to implement digital transformation features in the financial
sector in the context of the US banking sector.
1.5 Research Questions
 RQ1: What are the benefits of digital transformation for the users?
 RQ2: What are the perceptions of banking organizations in the U.S about the shift
towards digital transformation?
 RQ3: How is digital transformation of the banking sector in the U.D challenged?
 RQ4: In what ways can digital transformation features be more effectively implemented?
1.6 Research Structure
The dissertation is structured as follows:
8

Introduction: It is the first chapter in the dissertation, containing the background of the study,
the rationale of the research, research aim, research objectives, research questions, and proposed
methodology.
Literature Review: It is the second chapter highlighting the research objectives by considering
secondary sources such as books, journals, articles, as well as scholars. It also involves analysing
the viewpoints of the authors and making critical evaluations.
Methodology: It is the third chapter and contains the different methods such as research
philosophy, research approach, research method, research strategy, data collection method,
sampling, data analysis, and ethical considerations.
Results and Discussion: This chapter is mainly presented logically by considering the figures
and tables, making graphs and forming interpretations to analyse the primary data. The results
are linked to the research objectives and literature review.
Conclusions and Recommendations: This chapter consists of a decision based on the whole
investigation. The determination depends on the outcome. The recommendations are related to
giving suggestions to improve the business in the future. It also consists of the aims, execution
strategies, cost of resources, and benefits.
CHAPTER TWO: LITERATURE REVIEW
2.1 Impact of the Digital Transformation on the Banks and People during COVID-19
Pandemic.
According to Shubenok (2021), digital transformation is described as the up gradation of
the existing processes or introducing new ways of performing business activities that enhance
customers' experience.
In banking, digital transformation is related to several changes performed through the
banks, which are integrated with different Fintech solutions to automate, digitize, and optimize
the process and enhance data safety. It is a phenomenon that arose from information
development and communication technologies (Egala, Boateng & Mensah, 2021).
9

Banks are at a competitive edge in digital transformation as digital capacity has
increased, client travel has developed further, and the central banking methods have surpassed
branch offices with mobile services (Kitsios, Giatsidis, and Kamariotou, 2021).
For the banks, digital transformation can be understood as a shift to digitalizing services,
products, and communication channels. Due to the increasing expansion of mobile technologies,
the banking business is now more technologically knowledgeable (Das, 2020).
Although some banking firms have previously delayed mobile app development, this step
has become virtually obligatory especially in the aftermath of the COVID19 pandemic.
The COVID-19 pandemic forced customers and banks to use digital processes and tools
to compensate for the office workspace, call centres, and branch closures. Because of the
closures of physical bank branches due to local and national lockdowns, mobile and online
banking became the primary channels for individuals to interact with banks.
(Disemadi&Shaleh,2020).
With the rise of digital capabilities, customers' journeys have evolved, with mobile
services overtaking the routine visit to bank branches and redefining traditional banking. Banks
use digital technologies to minimize costs in the US and provide better services to customers
(Wewege, Lee and Thomsett, 2020).
Top banks in America have decided not to let global COVID-19 pandemic potential
interfere negatively on their service quality. At the beginning of the pandemic, banks capitalized
on the escalated willingness of customers to consider digital financial services, which was
positive compared to before the pandemic when some banks were providing bafflingly archaic
financial services (Luhach, Jha, and Luhach, 2018).
It is arguable that banks played a vital role in slowing the spread of COVID-19 by
assisting clients in making better and more effective use of remote channels and existing digital
media in managing their budgets, transferring money across bank accounts, making digital
payments, and using government programs. With the spread of the economic fallouts, retail
banks had to deal with more overwhelming and fluid priorities, making repositioning a critical
step to be taken at present and recalibration essential for the future.
10

Concerning this, bank operations have continuously monitored circumstances daily while
also focusing on the changing working hours of branches’ operations and closures (Kaur et al.,
2020).
For instance, JPMorgan Chase Bank has temporarily closed around 20% of its
components and minimized staff, only operating their branches in the morning.
Figure 1: Frequency of mobile app usage for deposit product in the year 2019 (%)
(Source: McKinsey Banking Journey Pulse Benchmark)
From the above graph, it is evident that even in the current crisis, there are some actions
that banks can take to assist retail customers as well as some other businesses by using digital
channels so that consumers can make bank-related transactions from home.
In the COVID-19 pandemic, banks in the US focused on developing proactive measures
and strategies to prevent mortality within their workforce due to the COVID-19 virus infections
(Dermine,2016).
Actions taken to reduce the spread of the virus included visiting only through
appointments, maintaining social distancing, keeping doors locked to limit the number of
customers inside, and having no higher than the prescribed number of workers on premises
(Etembekov, 2021).
Digital banking helped in easier transactions, checking account balances, and other
digital devices (Fedotova et al., 2018).
11

Figure 2: US banks by branches
(Source: COVID nudges US bank customers into digital era)
The pandemic has had a substantial impact on the way individuals make purchases.
Contactless payments rose by 40% globally (Dermine,2016).
The pandemic also motivated the retail banks to speed up digital transformation plans
and promote awareness in the people for using digital banking to make the transactions easily,
transfer money and other bank-related transactions without going to a bank branch. This
exponential trend of a rise in digital activities has opened new and harmonious relationships,
registrations, contactless payments, and mobile applications for payments.
On the other hand, banks can also successfully apply fraud prevention measures for credit
card transactions using AI, real-time data analytics, and User Behaviour analytics (UBA) as
warning systems (Disemadi and Shaleh,2020).
The development of the new innovative technology permits the banks to enhance
customer engagement and offer personalized experiences (Omarini, 2017).
12

According to the Deloitte Centre for Financial Services, the banking industry of the US
may have to set aside $318 billion in net loan loss between year 2020 to 2022, comprising 3.2%
of mortgages (Dang & Vartiainen, 2020).
Figure 3: Banks will add more digital capabilities to branches
(Source: Deloitte Center for Financial Services)
While losses are anticipated in all loan categories, commercial real estate, credit cards,
and small business loans are slated to be the most severe (Dermine,2016).
The digital capabilities of banks aid users in making account deposits and transfers
remotely by providing them with several opportunities to make it feasible for them to apply for
loans and access personalized money management services (Sonono, and Ortstad, 2017).
Currently, these capabilities are being utilized by the branches of banks. This is done by
ensuring that they are offering access to their customers, using and moving the money through
mobile devices. Moreover, digital banking apps help provide for their customers feasibility and
access to check their account balance detail, pay bills, transfer money, and apply for loans
(Cuesta et al., 2015).
13

There is no need for the customer to visit the branch as digital banking has made life
easier. It has been examined that the bank should prioritize sustaining first-time digital channels
users through targeted offers and engagement strategies (Fairooz & Wickramasinghe, 2019).
Simultaneously, banks should continue to invest in digital technology to provide the
seamless experience the sector has been seeking. They should not only cover the digital channels
but also consider in-branch experiences such as self-service digital kiosks (Disemadi &
Shaleh,2020).
There is a need for banks to consider undergoing digital transformation processes, which
entails that such banks while emphasizing digital transformation, ensure the adaptability of
policies that drive initiatives for meeting and changing consumers’ demand through the use of
new technologies along with an automated and swift response to the changes of the market that is
necessary for digital transformation in banking (Diener, and Spacek, 2021).
Kitsios, Giatsidis, and Kamariotou (2021) stated that the following are the requirements
that banks need to put in place while undergoing digital transformation.
1. Developing a data strategy for personalization
2. Selecting the right technology platforms.
3. Redefining customer experience.
4. Establishing and optimizing existing customer-facing websites and apps, e.g., AI,
Chatbot, mobile, web.
5. Implementing quality assurance measures on services products.
In addition, it is observed that for a successful digital transformation journey, three key
pillars involved are the evolution of the network, digital business, and customer experience
which helps in effective transition from traditional to digital services in banks.
In conclusion, the use of digital tools during the Covid-19 crisis has forced Banks and
customers to transform the way they do business, and this process has helped compensate for
branches, offices, and call centres closures. The emerging risk arising from using this technology
is a challenge during the COVID-19 crisis.
14

Impact of digital transformation on banks with examples
Impact of digital transformation on banks Examples
Developing a data strategy for personalization
that drives the data outcomes (Kitsios, Giatsidis,
and Kamariotou, 2021).
For an example, enriched and cleansed
data.
Selecting the right technology platforms
(Mikhaylov and Petrov, 2021).
For an example, blockchain, open
banking, cloud banking and biometrics.
Establishing customer-facing websites as well as
apps (Omarini, 2017).
Examples, self-service customer portal,
agent/broker portals, and claims
management applications
Investing in artificial intelligence through
launching virtual assistants and chatbots for
assisting customers having urgent issues
(Mikhaylov and Petrov, 2021)
For an example, online banking
applications, Fraud detection systems,
virtual assistants, website optimization,
(Source: Nigel Moden, 2021)
Impact of digital transformation on banking customers
Areas of impact Impact of digital
transformation on
customers
Examples
Customer Services - Getting 24/7 customer
service (Kaur et al.,
2020).
- NEFT and IMPS
customers can transfer
money and make
payments easier
- Real-time support - Real time assistance
when customers need
“real time” help, they
15

mean it. Banks can
provide real time
support to customers
via live assistance
such as co-browsing
& video chat with
integration with
support chatbots.
Ease of Payments - Easier payments and
transfer of money
without going to bank
branches
(Kreitstshtein, 2017).
-
- For an example, by
using the RTGS,
NEFT and IMPS
customers can transfer
money and make
payments easier
-
- Bills payment. - Bills payment made
easier
- Common platform for
sending and receiving
payments.
- Sending or paying
money to friends,
family and businesses
using phone numbers
or email address e.g.,
Zelle
Account Monitoring - Monitoring their
accounts, transferring
money, paying bills,
locating a close
branch or atm,
depositing cheques,
setting up alerts for
unknown transactions
etc. (Martin, 2019)
-
- By using the mobile
banking applications
in financial
planning/forecasting,
Checking, and
improving my credit
score, and making or
managing budgets.
Complaint Management - Having urgent
solutions to their
problems/complains
(Omarini, 2017).
- For example,
customers can go to
the banking
ombudsman or take
the bank to court.
16

2.2 Different Perceptions of Banking Organizations regarding the Shift toward Digital
Transformation
 Management perception: All the banks in the US are focused on transforming their
businesses towards the “digital” so they can provide better services to the customers
(Vishnuvardhan, Manjula, and Lakshman Naik, 2020).
In banking, the main issue seems to be that the financial services providers do not have
comprehensive digitalization, provide an incomplete range of services, and are
confronted by the operational and strategic barriers within the digital transformation
processes (Egala, Boateng & Mensah, 2021).
Faced with the regulatory requirements defined as Basel III, banks are striving to
introduce new technological standards, such as regulatory technology (RegTech).
 Customer perception: Individuals had a suggestion related to shifting up to digital
network during the Covid-19 pandemic, which must aid an adequate environment to
direct banking changes to excel. However, the level of satisfaction related to online
banking was decreased (Egala, Boateng & Mensah, 2021) and according to J.D Power
(2021), direct or online banking satisfaction scale lowers, customer satisfaction decreases
at a high rate resulting in decreased interest and a complex economic condition.
In contrast, many essential performances scale showed that direct banking is continually
set for norms and standards related to digital transformation within the retail banking
market. Nowadays, online networking, online applications, and mobile phone usage are
widespread and necessary.
Still, the satisfaction rate regarding online banking is low (Etembekov,2021).
Few defects have been seen related to online banking, including issues regarding clarity
or transparency of information, easy navigation, and boundary aesthetics. Moreover, the
customers have no right to claim any direct bank websites to provide enough
information for addressing all queries (Disemadi &Shaleh, 2020).
17

 Social perception: The uprising of this transition has already started, and banks’
opportunities would take a decision whether they’re developing a digital division across
the rich and poor or producing a wholly comprehensive economy and societies.
According to Diener and Spacek (2021), digital transformation is a worldwide
phenomenon that has been considered better in relation to business strategies.
Bank digitalization is seen as an omnipresent challenge the banking sector faces (Egala,
Boateng & Mensah, 2021).
In the financial sector, digital transformation is related to smoothening the obstacles that
seem to hinder its execution. Digital transformation aims to make improvements by
bringing necessary structural changes by combining information, community,
connectivity technology, and information technology (Dang & Vartiainen, 2020).
The primary goal of digital transformation is to be reinforced as the trusted associate of
board of directors in the context of addressing any concerns and creating realistic
expectations about digital transformation and emerging technologies.
However, bank digitalization is a ubiquitous problem presently confronting the financial
sector. Banks are engaged by disruptive innovation in digital transition, which involves
adapting nearly all cooperating procedures (Galazova & Magomaeva, 2019).
Digital transformation also involves breaking down the barriers to the seamless
realization of digital techniques in the financial sector (Das, 2020).
Faced with the regulatory requirements defined as Basel III, banks are striving to
introduce new technological standards, such as regulatory technology - RecTech.
RegTech is a new technological trend involving the use of information technology and
digital technologies, which may contribute significantly to the regulatory processes of
banks (Bajpai and Biberman, 2020).
18

Figure 4: Transactions through various channels
(Source: Deloitte Canter for Financial Services)
Digitalization plays an essential role in contributing to the United Nations Sustainable
Development Goals (SDGs). Without the needed change, the existing business, environmental
and economic challenges in the future cannot be sustainably solved (Demirgüç-Kunt, Pedraza &
Ruiz-Ortega, 2021).
It is to be noted that JPMorgan is a financial service and American multinational
investment bank headquartered in New York City. In 2017, the IT budget for this financial
services giant was $9.6 billion. For IT firms, the important aspects regarding the digital
transformation are the vision of marketing as well as implementation for all the stakeholders,
done through marketing, which is a strong suit for the IT groups. The IT budget can also be
influenced by their position on the list of fortune companies.
19

Figure 5: J.D. Power 2021 US direct banking satisfaction study
(Source: Business Wire)
A significant finding from different researchers shows a long waiting time incurred
during information processing or transfers. In their words completing an insurance claim should
take only 5 minutes, but it often takes 30 days to have the claim processed. The rest of the time,
the claim is waiting for information, getting lost, getting found, expediting, and so on (Wetherbe
& Frolick, 2000).
However, JPMorgan Chase has been bold to move towards transforming digitally.
Through various digital offerings, the company has undertaken effective digital transformation
measures that have metamorphosed into successful and secure business outcomes
(Dermine,2016).
20

The company is investing in innovative methods to attract consumers and grow customer
engagement, profitability, and satisfaction through the use of digital channels. JPMorgan Chase
is committed to digital transformation and sticking with technology use (Okano, Antunes, and
Fernandes, 2021).
In 2016, JPMorgan engaged a consulting firm to assess their present state of digital
transactions from the view of the customers and their business clients (Fairooz &
Wickramasinghe, 2019).
The company stated that there was slow adoption of advanced technological features like
electronic payments and digital wallets. However, since 2018, things have changed positively,
where the pandemic propelled an exponential launching of their digital offerings (Demirgüç-
Kunt, Pedraza & Ruiz-Ortega, 2021).
JPMorgan Chase has more than 600 million retail consumers that continually propel the
bank to embrace the digitization space. JPMorgan’s Corporate and Investment Bank uses
machine learning to better personalize the digital experience of research platforms (Fedotova et
al., 2018). The machine learning techniques help the bank solve issues using features such as
customers’ logos in the customized portal, which provides relevant and unique investigation and
personalization, as per their requirements.
JPMorgan Chase is the first big bank to deploy an AI-powered virtual assistant to
simplify ways for business customers to move money overseas, for average pay, or acquisitions
and mergers worth several million dollars (Egala, Boateng & Mensah, 2021).
AI-powered helpers can adapt to customer behaviour and provide intelligent suggestions
(Bhasin and Rajesh, 2021).
The AI integration provides a comprehensive, multi-channel customer care experience
that enables users to request information from the virtual helper such as account balances, list of
recent transactions, stopped payments, bill payments, among others. (Etembekov,2021).
Advantages and Disadvantages of Machine Learning
ADVANTAGES DISADVANTAGES
Artificial intelligence can be
deployed easily (Horvitz, 2014).
Robots, with them replacing jobs, can cause severe
unemployment, unless if humans can fix the
21

unemployment (Copeland, 2015).
Machines not required refreshments
and breaks as like human beings
(Naik, 2016).
AI is making humans lazy with its applications
automating the bulk of the work. Humans tend to urge
hooked in to these inventions which may cause a drag
to future generations (Demirgüç-Kunt, Pedraza and
Ruiz-Ortega, 2021).
The machines can be re programmed
for work for long time without
getting bored or getting tired
(Etembekov, 2021).
As AI is replacing most of the repetitive tasks and
other works with robots, human interference is
becoming less which may cause a significant problem
within the utilization standards (Vinayak Pujari,
2020).
Programming, self-writing, self-
modifying etc (Fairooz and
Wickramasinghe, 2019).
Not easy to develop the machines because the
equipment is also expensive (Sachin S Bhosale, 2020).
High (2021) talked about a multi-year program of transformation that started in 2019. It
looked at making operations more efficient and minimizing operation risk by leveraging different
digital approaches and solutions like hyper-personalization and developing blocks.
Wells Fargo & Company is one of the leading financial revokes organizations with assets
of around$1.9 trillion (Pashkov and Pelykh, 2020).
This firm mainly offers investment, banking, and mortgage services and products. The
company has combined the multi-cloud approach with its third-party centres to drive agility,
technological speed, and scalability of staff members and consumers (Disemadi and
Shaleh,2020).
Wells Fargo has adopted cloud computing using the Google Cloud Platform (GCP) and
Microsoft Azure cloud from a digital infrastructure strategy perspective. Launching the new
infrastructure strategy is a necessary stage in the multi-year journey for digitally transforming
Wells Fargo (Galazova and Magomaeva, 2019). The purpose is to provide an accessible platform
22

and ease of doing business for consumers and develop a positive working experience for staff
members.
This Wells Fargo Bank intends to leverage the Microsoft Azure cloud platform to
empower innovative solutions across various functions within the banks and provide a secure
and trusted foundation about strategic business workloads (Dang and Vartiainen, 2020).
Consequently, two companies will partner with Wells Fargo on analytics and digital
services necessary to accelerate the digital transformation strategy. Google cloud will drive
complex AI, advanced workloads, and data solutions for a faster and better-personalized
experience for the consumers (Dermine,2016). Services rendered by Microsoft Azure will
promote effective financial services with complaint, scalable and secure platforms for cloud
solution requirements, consisting of complex and advanced workloads.
Wells Fargo can pursue its crucial technologies and business transformation priorities
across different areas, including risk management and control, personalized banking, and the
digital industry for the long-term, with standardization in the Google Cloud and Microsoft Azure
as primary and strategic cloud platforms throughout all areas of the business (Stackpole, 2021).
On the other hand, US Bancorp, an American bank holding organization, the fifth-biggest
banking institution in the US, has invested heavily in digital transformation (Dang and
Vartiainen, 2020). The research team of US Bancorp has determined that cloud applications and
on-premises applications will be used by its over 70,000-strong workforce.
Undoubtedly, digital banking is hitting the mainstream (Egala, Boateng and Mensah,
2021). US banks are gravitating towards satisfying their modern customers, mainly Generation Z
and the millennial brackets. These generations are more focused on technologies and are more
fascinated by intelligent digital products and offer analytics.
The maturity model of digital banking is the highest global research analysis related to
digital banking, which provides a complete mystery analysis of financial services offered by
digital networking and motivates the deliberations about upcoming advancements
(Etembekov,2021).
23

The Information System (IS) maturity model structure covers three main components: IS
utilization success, IS quality success, and IS advantage success (Galazova and Magomaeva,
2019).
IS quality being the initial stage of success or achievement and is identified as system
quality, data quality, and service quality. The IS usage success is considered the 2nd component,
which includes user analysis and customer pleasure. The 3rd dimension of success is benefit
success which consists of operational excellence and strategic positioning (Dang and Vartiainen,
2020).
2.3 Effective Ways to Implement Features of Digital Transformation in the Financial
Sector
According to Hertz (2021), with the shift in the COVID-19 pandemic and the
advancement of technologies, the world has evolved around digitalization.
Smart technology usage now forms an integral part of individual lives using mobile
phones for automating daily processes.
Source: Gartner Digital Banking Transformation Hyper Cycle. 2019
24

In finance, digital transformation involves restyling financial services using technologies
to improve the existing system. Compared to modern banking, traditional banking takes more
time and needs more workforce, whereas digital transformation needs only specific people to
participate (Fedotova et al., 2018).
Consequently, recruiting experts to create and execute digital transformation strategies,
working with those who can assist in this shift as well as maintaining and acquiring consumers is
essential to all three mentioned banks.
The leading banks of the US are some of the largest banks in the region, providing a more
comprehensive range of banking items as well as solutions to the affluent, personal, and
commercial consumers in around 600 branch locations and through more than 1300 ATMs
(Egala, Boateng and Mensah, 2021).
Features of Digital Transformation
Source: (Mikhaylov and Petrov, 2021)
25

There are some ways to implement the features of digital transformation in the financial
sector, which are as follows:
Define strategic direction: Failure of the digital transformation source is due to the lack of well-
explained objectives. The banks' focus in selecting advanced technologies is to provide
satisfactory services to customers to easily make transactions, payments and transfer the funds to
different accounts (Etembekov,2021).
To implement digital technology in the banks, there is a need to define the strategic
direction in a detailed manner. Many techniques can be considered, such as the business canvas
model, which effectively expresses constituents regarding the business model concisely and
clearly. Other than this, there are helpful analysis tools such as SWOT, balanced scorecard,
PESTLE, and others. Firms support those techniques that can be integrated with business model
stress-testing. It helps determine the weaknesses and strengths of the business models by
examining them against various scenarios before execution.
Align the organization: After defining the strategic direction, there is a requirement to ensure
that each one can understand the new approach to implementing the digital transformation
features and act accordingly (Pyatina et al., 2020).
One major factor inhibiting the execution of the strategy is related to lack of
understanding of the strategic intent (Disemadi&Shaleh,2020).
There is a need to provide valuable and transparent information on the system and
influence each at the workplace at their detailed level. They are disseminating accessible
information to different groups at the workplace through online channels to foster alignment and
understanding.
Adaptively implement the strategy: The strategic models can easily be aligned with enterprise
architecture. This needs to bring individuals together from various areas of the company to
impart them with the essential skills and knowledge while considering the high quality of
information for supporting effective decision-making as well as execution. Executing the
strategy helps in using digital technology in business, as this assists in making the lives of
customers easier (Dang and Vartiainen, 2020).
26

It assesses the feasibility and impacts of the business models and execution of the present
company (Demirgüç-Kunt, Pedraza and Ruiz-Ortega, 2021).
Stimulate local innovation, improvement, and learning: This is complex for the local teams to
improve working, develop software, and execute the bottom-up innovation (Fedotova et al.,
2018).
A specific source of information gathers and combines data from multiple sources and
delivers results via displays, graphs, and other formats that can be readily consumed. It is an
essential tool to help teams achieve local achievements and connect them to their more
considerable strategic guidance (Etembekov, 2021).
comply with applicable regulations: Digital transformation cannot be operated unconstrained.
There is a need for a company to deal with the pressure from external and internal sources. The
banks should be aware of all the regulations which need to be considered while executing digital
transformation (Sebastian et al., 2020).
Boolean search string
Boolean
string
operator
Database Boolean string search
AND Three ways COVID-19 is changing how banks adapt to
digital technology
Business AND analytics
OR 10 Innovations That Deliver the Digital Banking of the
Future
Analysis OR analytics
NOT Wells Fargo’s Head Of Tech Plots A Strategy For
Innovation
Architects NOT
“software architects”
QUOTATION
MARK “”
Digital Transformation in Banking: A Managerial
Perspective on Barriers to Change
“Enterprise Architecture”
INURL NIST Risk Management Framework site: www.nist.org
InURL: “digitalization”
27

CHAPTER THREE: METHODOLOGY
3.1 Introduction
This investigation employs several research methods, philosophy, strategy, and
approaches. It has collected and analysed data, administered questionnaires, done surveys, given
official statistics and objectively interpreted them. These strategies are employed due to their
representativeness and reliability for valid information. The following are the strategies/ research
methods employed.
3.2 Research Philosophy
Positivism research philosophy: This research philosophy is related to quantitative methods like
the structured questionnaire, surveys, and official statistics because they have representativeness
and reliability. The positivism philosophy is the view that only provides valuable knowledge
gained by proper observation. In this, the leading role of an investigator is limited to the
collection of the data and objectively interpreting it (Breslerand Stake, 2017).
The positivism research philosophy is being considered in this investigation. The primary
reason is that it is based on the quantitative method and gives valid information. The positivism
28

research philosophy provides a platform for solid claims regarding usefulness, reliability, and
objectivity of knowledge (Dźwigoł, 2018).
3.3 Research Approach
Deductive approach: This approach is related to creating a better hypothesis that depends on the
existing theory and designing an effective research strategy for testing hypotheses. It explores the
phenomenon and tests the idea's validity in the provided circumstances; it provides general to
specific information (Fairooz and Wickramasinghe, 2019).
The deductive research approach has been considered in this research. The process
consists of developing a past study and examining whether similar outcomes can be developed
regarding the effectiveness of digital transformation and how this could assist people and all
other commercial paradigms, especially the financial sector, particularly in the period of the
global pandemic
3.4 Research Choice
Quantitative method: This research method mainly emphasizes the measurements of the
objectives, numerical, statistical, and mathematical analyses of a collection of the data done by
using surveys, polls, and questionnaires (Demirgüç-Kunt, Pedraza and Ruiz-Ortega, 2021). The
quantitative method is used to search for averages and patterns, make proper predictions,
generalize outcomes to the broader populations, and test causal relationships.
The quantitative research method has been considered for this study as it provides valid
and statistical information related to the study aim. This method is effective because it permits
better flexibility. Moreover, it makes the research more scientific by gathering a large amount of
data for statistical analysis, which diminishes the biases in research.
3.5 Research Strategy
Survey: The survey research strategy is used in this investigation. The survey method includes
gathering information through a predefined respondent group (participants) for evaluating the
research topic. The participants will be the employees of different banks. They will be provided
with questionnaires with open-ended questions to fill up, and then the data will be analysed
through applying statistics.
29

In context of close ended questions 10 questions were accumulated while for open-ended
questions 4 questions were asked. With the help of these questions the overall research is being
executed to achieve the research objectives.
3.6 Data collection methods
Primary data collection method: The researcher can obtain new and fresh information regarding
the subject area. Primary data is directly obtained from first-hand sources such as
experimentation, surveys, observations, and others (Nayak and Singh, 2021).
In this research, the primary data is collected through survey questionnaires distributed to
the participants, such as bank employees. The questionnaire has been developed around the
research aim.
The primary rationale behind considering this method is that it guarantees that the
collected information is relevant and updated, revealing accurate trends.
Questionnaire design
This process helped in creating a format as well as questions of a survey instrument used to
gather data related to the objectives of this research. A guide on questionnaire design by
(Nguyen, Kim-Duc, and Freiburghaus, 2021 gave an insight into how questions could be
properly framed. Steps taken in questionnaire design include:
- Identified research aims and the goal of the questionnaire: Specific questions were
defined that could help gather information around the objectives of the research. Four
research objectives were drafted.
- Targeted Respondents were defined: Specific audience, based on personalities were
identified for the interviews and survey. The plan concluded on interviewing thirty (30)
respondents in the survey. This includes, a bank Chief Information Security Officer
(CIO), four bank executives (three vice presidents—strategy, cyber security operation,
and legal), one senior operations officer, eight non-executive banking officers, and
seventeen bank customers majorly domiciled in California, Maryland, and New York
states. Data gathered through these engagements assisted in defining the recommendation
in this research.
30

Questions developed: In order to gather relevant data in the exercise, a total of ten (10)
questions were designed for the questionnaire. This includes Nine (9) Close-ended
questions and one (1) open-ended question. Bearing in mind that question phrases could
be phrased in several ways. Participants will encounter open-ended questions in relation
to the exploratory questionnaire, where they can fill in any replies.
Sample of questions derived during the questionnaire design and mapping to research
objectives
QUESTIONS RESEARCH OBJECTIVES
Does your bank implementing digital
transformation make customers’ life easier?
Critically evaluate the impact of the digital
transformation on banks and people during
the COVID-19 pandemic in the context of the
US banking sector.
What are the benefits of digital transformation
in the context of banks?
Critically evaluate the impact of the digital
transformation on banks and people during
the COVID-19 pandemic in the context of the
US banking sector.
What are the various areas of digital
transformation in banks?
Investigate different perceptions of banking
organizations in terms of the shift towards
digital transformation in the US banking
sector.
What are the various kinds of online banking? Investigate different perceptions of banking
organizations in terms of the shift towards
digital transformation in the US banking
sector.
According to you, does a digital
transformation seem necessary for financial
services during COVID-19?
How did the digital transformation impact the
customers in the context of banking during
the COVID-19 pandemic?
Critically evaluate the impact of the digital
transformation on banks and people during
the COVID-19 pandemic in the context of the
US banking sector.
31

What are the different issues customers may
face while using digital banking?
Identify the challenges of the banks in
implementing and aligning with digital
transformations.
What are the effective ways to overcome the
issues faced while customers consider digital
banking?
Critically evaluate the impact of the digital
transformation on banks and people during
the COVID-19 pandemic in the context of the
US banking sector.
What are the different ways banks can use to
improve online security?
Investigate different perceptions of banking
organizations in terms of the shift towards
digital transformation in the US banking
sector.
Recommend ways in which banking software
solutions help banks overcome challenges?
Recommend effective ways to implement
digital transformation features in the financial
sector in the context of the US banking sector.
3.7 Sampling
Sampling is the process or action of obtaining samples for analysis. It involves statistical
analysis to predetermine the observations numbers that are to be chosen from the whole
population.
Probabilistic sampling: In this sampling method, each member of the whole population has an
equal chance of being chosen. It is a sampling method that uses random selection (Snyder, 2019).
In this research, probabilistic sampling will be used; the respondents were randomly
chosen. The main reason for using the random sampling method is that it provides an equal
chance to the selected participants i.e., each participant will be of equal value and equal rights
throughout the study process.
32

The sample size that will be selected is 30 participants, the bank employers are authentic
and accurate. Through this method, focus groups of 30 members were considered.
The survey questionnaire is based nine (9) closed-ended questions and one (1) open-
ended question. The development of the questionnaire is based on nine basic questions linked
with the objectives of the study related to digital transformation in banks. Each question is
reciprocal to the other question that helps gain relevant and appropriate insights from the
customers. The method incorporates the following members:
 A bank Chief Information Security Officer (CIO).
 Four bank executives (three vice presidents—strategy, cyber security operation, and
legal), One senior operations officer.
 Eight non-executive banking officers.
 Seventeen bank customers majorly domiciled in California, Maryland, and New York
states.
3.8 Data Analysis
This is the process of gathering data and organizing data to develop reliable and valid
outcomes, using logical and analytical reasoning to gain reliable information.
For the data analysis in this research, thematic analysis has been considered. In this,
different themes have been used based on the questions in the questionnaire and the graphs.
Interpretations have been made through the process of coding and theming. The thematic coding
will first identify the themes within data by evaluating the words and sentences’ meaning and
then make themes of the text discussed in the overall research (the aims and objectives of the
study (Taherdoost, 2016).
3.9 Thematic Analysis (Coding and Theming)
The thematic analysis is the most used method for analysing open-ended questions in the
survey method (Etembekov,2021).
It is the analysis of qualitative research. It focuses on identifying, analysing, and
interpreting the meaning or themes in the qualitative data. The qualitative data is first identified
33

through the coding process in which what, why, and who is included. For example, what are the
people saying? Who are they? And what they’re talking about? And the main aim of the research
(Galazova and Magomaeva, 2020).
The thematic analysis includes the data extracted through the coding process for further
analysis according to the research assumptions. In this research, the qualitative data attained
through open-ended survey questionnaires will be coded, and the theme development will be
done. The thematic analysis is used because the primary research involves preliminary
qualitative data, which is challenging to be analysed as there are no straightforward answers to
questions; instead, there are too vague, incomplete sentences, and language issues that cannot be
easily understood by the researcher and readers so that the coding process will be done and
themes made after which the interpretations will be made.
3.10 Ethical Considerations
The BERA guidance for educational research, fourth edition: August (2019), helped navigate
necessary ethical considerations for the study. All ethical considerations were identified and
followed. This includes informed consent, anonymity, privacy, confidentiality, and preventing
harm for the University of Salford. A completed Ethical consideration form can be found in the
Appendix.
During the close-ended data collection process, no private details were obtained from the
respondents. This is all due to the privacy concerns of the respondents that their personal
information was not disclosed in the future.
34

CHAPTER FOUR: RESULT AND DISCUSSION
4.1 Introduction
This chapter analyses the data collected from the primary and secondary data collection
methods. It consists of the evaluation as well as the discussion of the findings. To analyse the
preliminary data, the thematic analysis method is chosen. The results are linked to the research
objectives and the literature review. The argument is based on the primary and secondary data
collection methods.
4.2 Statistical analysis of closed-ended questions
4.2.1 Frequency Table
Q1) Does your bank implementation of digital transformation make
the customer’s life easier?
Frequency
a) Yes 24
b) No 6
Q2) What are the benefits of digital transformation in the banks? Frequency
a) Gain flexibility and adaptability 16
b) Consolidate data, applications, and processes 7
c) Transform reporting capabilities 7
Q3) What are the various areas of the digital transformation in the
banks?
Frequency
35

a) Online banking applications 15
b) Fraud detection systems 7
c) Virtual assistants 8
Q4) What are the various kinds of online banking? Frequency
a) Deposits and payments 14
b) Debit card 9
c) E-statement 7
Q5) According to you, is digital transformation necessary for
financial services during COVID-19?
Frequency
a) Yes 18
b) No 2
Q6) How did digital transformation impact the customers in the
context of banking during the COVID-19 pandemic?
Frequency
a) Positive manner 21
b) Negative manner 9
Q7) What are the different issues customers can face while using
digital banking?
Frequency
a) Traditional banking habits 7
b) Security 7
c) Transaction difficulty 7
d) Technical issues 8
Q8) What are the effective ways to overcome these issues while
customers consider digital banking?
Frequency
a) Enhance online banking awareness 9
36

b) Explain online bank security 9
c) Speed up the transaction time 7
d) Implement advanced technology 5
Q9) What are the different ways banks can improve online
security?
Frequency
a) Multi-factor authentication 11
b) End-to-end Encryption 4
c) Secure code and architecture 7
d) Enable real-time alerts 8
THEME 1: Banks implementation of digital transformation makes customers’ lives easier
Q1) Does your bank implementation of digital transformation make
the customer’s life easier?
Frequency
a) Yes 26
b) No 4
Interpretation: According to 26 respondents, banks have implemented digital
transformation to make the customers’ lives easier. According to them, during the early period of
the COVID-19 pandemic, customers faced difficulties making payments or any financial
transaction. With the help of digital transformation by the banks, customers transactions were
made more efficiently, and they could make digital payments anywhere and at any time.
However, 4 respondents said that customers sometimes face issues in terms of digital
payments, like security concerns. People think that digital banks are unsafe as it can be hacked,
or thieves can get to their financial data and information.
37

THEME 2: Benefits of digital transformation
Q2) What are the benefits of digital transformation in the context of
banks?
Frequency
a) Gain flexibility and adaptability 16
b) Consolidate data, applications, and processes 7
c) Transform reporting capabilities 7
Interpretation: The above table shows that digital transformation provides many
advantages to banks. According to sixteen respondents, the main benefit of digital transformation
for banks is gaining flexibility and adaptability. In the banking sector, mergers and acquisitions
are common. A cloud-based Enterprise Resource Planning (ERP) system makes it easy to merge
the banks.
According to seven respondents, consolidation of data, applications, and processes are
benefits of digital transformation. As per their perspective, digital transformation permits banks
to transition from different legacy systems and yields many advantages such as minimizing the
technology stack and being cost-effective. After transitioning to a payroll system and cloud
based HCM, the bank clients can consolidate or eliminate five various applications and improve
operational efficiency.
The seven remaining respondents stated that digital transformation helps banks transform
reporting capabilities, i.e., banks can react and monitor quickly to determine the issues and the
changing trends. This makes the data accessible, permitting senior leaders to pull up reports
usually needing IT to put together.
THEME 3: Areas of the digital transformation in banks
Q3) What are the various areas of the digital transformation in
banks?
Frequency
38

a) Online banking applications 15
b) Fraud detection systems 7
c) Virtual assistants 8
Interpretation: The above table shows different areas related to digital transformation in
banks. Fifteen respondents asserted that online banking applications are the main areas of digital
transformation in banks. According to them, online banking applications are helpful to the
customers in terms of making digital payments, transfer money, and other transactions. Some
online payment applications make financial transactions more accessible, such as Current.com,
Money Lion, and others.
Another seven respondents responded that the banks' focus is on the fraud detection
system. It is related to processes and analyses that permit the organizations to determine and
prevent any unauthorized monetary transactions or activities. Companies use arguably sufficient
fraud detection software, such as Sift, Clear Sale, Kount, and others, which help make financial
activities safe and secure.
The remaining eight respondents stated that virtual assistants are the central area of
digital transformation in banks, and they can effectively handle the transfers, payments,
password resets. It frees up teams of customer services to be more focused on the complex
inquiries of the customers and enhance growth.
THEME 4: Various kinds of online banking
Q4) What are the various types of online banking? Frequency
a) Deposits and payments 14
b) Debit card 9
c) E-statement 7
39

Interpretation: Online banking allows users to conduct financial transactions through
the internet. According to fourteen respondents, online banking is effective for deposits and
payments. Direct deposits provide users with a routing number to transfer the money in the
account automatically.
Nine respondents were however of the opinion that debit card is the primary type of
online banking as this money can be withdrawn from the bank account. Information regarding
the purchase is uploaded to the computer and then transmitted online.
The seven remaining respondents stated that e-statements are the periodic bank statement
available online. These are guarded through electronic safeguards and are unlikely to be obtained
by thieves compared to the paper statements sent by mail. The respondents summarily observed
that online transactions are better for security purposes.
THEME 5: Digital transformation is necessary for the financial services during COVID-19
Q5) According to you, is digital transformation necessary for
financial services during COVID-19?
Frequency
a) Yes 18
b) No 2
Interpretation: Eighteen respondents stated that digital transformation is necessary for
financial services during COVID-19 pandemic. During the pandemic, people faced issues in
making financial transactions and faced problems in making payments. This method is safe and
secure for the people as they do not need to go to the bank branches. Moreover, the financial
services are also enhanced due to digitization and the use of new technologies.
Digital technologies and processes have been used to mitigate the shutdown of the
branches, offices, and call centres in response to the pandemic. The respondents highlighted how
banks use technology to address difficulties and risks arising from the COVID-19 pandemic.
Digital technology made it possible to enhance the process of decision-making.
40

Only two stated that the digital transformation is unnecessary for financial services
during the COVID-19 pandemic.
THEME 6: Digital transformation impacted customers in the context of banking during
the COVID-19 pandemic
Q6) How did digital transformation impact customers in the context
of banking during the COVID-19 pandemic?
Frequency
a) Positive manner 21
b) Negative manner 9
Interpretation: From the above table, digital transformation has both positive and
negative impact on the customers in banking during the COVID-19 pandemic. According to
twenty-one respondents, digital transformation positively impacted the customers during the
COVID-19 pandemic. By using digital banking services, the banks give different digital tools to
consumers, consisting of taxation tools, loan calculations, and others, that assist the consumers in
financial planning without visiting bank branches.
In online banking, the customers were able to make financial transactions 24/7 and
unhindered as well as connect to customer care anytime to solve their queries better. To make the
banking experience convenient for customers, the banks also assigned the digital relationship
managers who could help the consumers solve questions at any time. Regarding this, digital
transformation makes the banking experience convenient, burden-free, and efficient for all
customers.
Nine of the respondents said that digital transformation negatively impacted the
customers. The main issues faced by the customers were slow processes, security issues, among
others.
THEME 7: Issues customers can face while using digital banking
41

Q7) What are the different issues customers can face while using
digital banking?
Frequency
a) Traditional banking habits 7
b) Security 7
c) Transaction difficulty 7
d) Technical issues 8
Interpretation: According to the table, people face several issues while using digital
banking. According to seven respondents, the main challenge related to digital banking is
traditional banking habits, while seven others said that security is the primary concern for all the
customers. They think that their financial data can be leaked using digital banking. Another
seven are of the opinion that the transactions are complex while the remaining eight respondents
agreed that customers face technical issues while using digital banking.
THEME 8: Ways to overcome the issues while considering digital banking for customers
Q8) What are effective ways to overcome the issues while considering
digital banking for customers?
Frequency
a) Enhance online banking awareness 9
b) Explaining online banks security 9
c) Speed up the transaction time 7
d) Implement advanced technology 5
Interpretation: According to nine respondents, there is a need to increase the awareness
of online banking to communicate the advantages to customers. According to nine respondents,
to get customers to use online banking, it is essential to explain online bank security to them. On
the other hand, seven respondents stated that banks should speed up the time taken for
42

transactions. Still, five respondents said that banks should use advanced technology to provide
better online banking facilities to customers.
THEME 9: Ways banks can be used to improve online security
Q9) What are the different ways banks can improve online security? Frequency
a) Multi-factor authentication 11
b) End-to-end Encryption 4
c) Secure code and architecture 7
d) Enable real-time alerts 8
Interpretation: According to eleven respondents, multi-factor authentication is one of the many
ways banks can improve online security. In comparison, four respondents stated that there should
be end-to-end encryption so that the online security of the banks can be improved. Nevertheless,
seven respondents stated that banks should adopt a secure code and architecture while eight
respondents said that banks need to enable real-time alerts to enhance online security.
4.2.2 non-statistical analysis of open-ended questions
Q1) What are the different factors that drive digital transformation in the banking sector?
Interpretation:
A CIO with a commercial bank portfolio and two executives responded that continuous
improvement is the factor that drives digital transformation in the banking sector. Some
participants said that the operating model is a digital transformation factor. As per the viewpoint
of some of the respondents, modernizing infrastructure drives digital transformation in the
banking sector.
Q2) What are the effective ways to implement digital transformation features in the financial
sector in the context of the US banking sector?
43

Interpretation:
According to some respondents, there is a need to explain the strategic direction better.
Some respondents stated that banks should implement the strategy, while others noted a need to
stimulate local innovation, improvement, and learning. Some of them said that the banks should
align with the IT organization to implement the digital transaction in the banks so that customers
can make digital payments transactions.
Q3) What benefits can customers get from digital banking from the US banking sector?
Interpretation:
According to some respondents, the benefits customers can get from digital banking of
the US banking sector is instant access, 24/7. The customers can make transactions at anytime
from anywhere. According to some respondents, customers can pay their bills online, and others
can check their account balances quickly.
Q4) What are the various opportunities available for the banks in the context of digital
banking?
Interpretation:
According to the respondents, the foremost opportunity is more output and more profits.
Some respondents said that mobile banking is the better opportunity available for the banks, as it
presents a better chance for the banks to generate high revenues from making transactions.
Similarly, some other respondents said that online banking is helpful because of faster services
that enables the completion of transactions in less time. According to some respondents, better
market predictions are an adequate opportunity available for the banks in digital banking.
4.3 Discussion
4.3.1 Impact of digital transformation on banks and people during COVID-19
It was observed from the review of literature that digital transformation permits banks to
know what their customers want (Fairooz and Wickramasinghe, 2019). They can develop
financial services and provide these services as per customers' needs rather than performing
guesswork. The innovative technological development permits banks to establish more robust
44

customer engagement with better offerings (Dermine,2016). Digitalization minimizes human
error as well as develops the loyalty of the customers. Through digital banking, it is easier for the
customer to manage more cash (Dang & Vartiainen, 2020). It has been studied that digitalization
has provided advantages to customers through facilitating cashless transactions; especially
during COVID-19, digital transformation delivered a positive impact on banks and people
(Dźwigoł,2018).
The requirement of various strategies for digital banking and innovation was evident in
the banking sector. Even before the pandemic hit, there was a rise in the customers' expectations,
at least from the personalized and instant services given through leading technology
organizations (Das, 2020). It is the main battleground for the financial institutions for the banks
to try to influence investors to focus on incorporating the digital path for the consumers while
minimizing the cost and reducing operational risk.
The switch to online models only has resulted in an unbelievable transformation, as the
banks moved all interaction with the consumers to digital (Etembekov,2021). The open banking
APIs are powered through advanced AI, and advanced analytics can provide more affluent real-
data time and personalization. At the same time, several financial technologies can lend
themselves as powerful accelerators. Regarding this, the closure of the banks demonstrated the
accurate scale of COVID-19 and caused a shift in customers' behaviour at the time of the
pandemic (Egala, Boateng and Mensah, 2021).
Now the banks are adapting and future-proofing their business models in context to these
societal changes. The shift in customer behaviour has put increased pressure on financial
institutions to speed digitalization and guarantee that traditional clients are entirely handled not
in terms of the physical in-branch experience but online. On the one hand, digital transformation
has positively impacted people during COVID-19, helping them make payments quickly and any
financial transaction. Moreover, the banks can solve customer queries and give their customers
better guidance.
45

4.3.2 Different perceptions of banking organizations towards digital transformation
Figure 7: Active mobile banking users at US Banks
(Source: Business Insider Intelligence, 2022)
JPMorgan Chase reported 51.8 million active digital clients as of Q3 2019, increasing 7%
year over year (YoY), with 36.5 million using mobile banking, a 12 percent increase YoY. This
is essentially unchanged from the previous quarter, when the growth of digital customers was 6%
YoY while mobile banking development was also 12% YoY.
Chase is the largest investor in the technology of large bank in the United States. It has a
$11.4 billion yearly technology expenditure, trailed by Bank of America's $10 billion & Wells
Fargo's $9 billion. In addition, the company is investing more money in its services as a whole.
Its total expenses increased by 5% to $16.4 billion in Q3 in the year 2019, owing to "greater
volume and revenue related expenses and investments" according to the company.
In view of JPMorgan Chase Bank, it is principally advised to evaluate both consumer and
corporate customers’ status of digital transactions (Fairooz & Wickramasinghe, 2019). This firm
has stated that high-tech features, such as electronic payments and payment systems, are being
adopted slowly by the customers as conceptions of such products. The clients have a positive
image of a merchant that offers efficient digital choices.
46

The retail banking brand of the US depends on the consumers to open current accounts
with the reward programs and expand in terms of loans, savings, and some other financial
products (Dermine,2016). Chase & Co. attributed 11.4 billion dollars to IT spending by
JPMorgan. The Bank of America will also spend 10 billion dollars on information
communication technology.
Banks and some other financial institutions use digital technology to improve the
customer experience for various financial products to enhance agility when introducing new
services (Fedotova et al., 2018). In comparison, Wells Fargo Company will contribute nine
billion dollars, and Citigroup will spend around eight billion dollars on technology. It was noted
that away from real-time payments, more barriers on the working capital and ineffective capital
use for financial service organizations compared to technology firms are present to protect the
financial service sector against the violation from big tech (Das, 2020).
The database provides contextual information and customer insights on which software
system and enterprise applications the US Bancorp is using and tends to invest in to deepen
relationships, such as Adobe Systems, OpenText, and Akamai, or determine the new suppliers as
the central part of the overall digital transformation (Disemadi&Shaleh,2020).
4.3.3 Effective ways to implement the features of digital transformation in the financial
sector
Schwertner (2017) observed that digital transformation is related to many changes in the
banking sector that are performed to integrate the different Fintech solutions to optimize,
automate, digitalize processes and enhance data safety. It applies several small changes that will
reshape technologies and methods considered in the financial field.
There are several digital transformation aspects in the banking sector with the ability to
implement change and readiness being necessary. From the perspective of industrial
development and national technological advancements, all the US banks are held back through
the legislation, strict frameworks, and security to protect privacy and customer data (Sebastian,
2020). Similarly, money applications and new digital native banking solutions are outpacing
conventional banking in the context of customer acquisitions and growth.
47

There are different ways to implement the features of digital transformation in the
financial sector, such as defining strategic direction, aligning the organization, adapting
strategies, stimulating local innovation, and improving, learning, and staying compliant with
applicable regulations. These steps can help execute digital transformation in the finance sector
by assisting customers in making their payments digitally and encouraging other people to use
the digital payment system while ensuring safety and security.
Schwertner (2017) further proclaimed that by assessing the current state of the business
profile, developing customized digital transformation strategies, and analysing the gap in the
business strategies, the firms are executing practical upgrading approaches. Also, creating a
digital transformation roadmap before the execution of the actual transformation reduces the
chances of failure and complications by the risk analysis of the digital transformation project
managers in banking sectors, as observed by Omarini (2017).
However, it has been analysed that several banks have made some mistakes in taking
separate digital initiatives to succeed because they do not have any coordination or support and
hence struggle with the digital native solutions. In banking, digital transformation should entail
the top-down approach, customer experience platforms, applications, integrating digital systems,
and infrastructure. In the US, all the banks have digital applications, provide online services and
consider digital features.
In banking, digital transformation permits the development of a personal and cohesive
digital customer journey, and this would be helpful for customers to gain solution of their
problems and manage their needs as well (LoGiudice, Liebhaber and Schöder, 2020).
Developing a compelling digital customer journey is related to taking the necessary steps
to integrate everything in an online platform so that consumers are handled by similar tools and
at the same time these tools can be used by the customer to meet their needs (Dermine, 2016).
Considering the digitally driven and automating solutions, such as AI and well-tested
chatbots, KYC compliance, Real-time ID verification, Selfie capture, and verification, Device
verification, Facial and fingerprint biometrics, Omnichannel capability (in-branch, mobile app,
website), Real-time credit bureau checks, Instant approvals, Interactive forms, and eSignatures
and others, maybe be integrated with technologies to drive digital transformation for banks.
48

JPMorgan Chase takes it to an extreme level, where they use these processes to evaluate loan
agreements and incorporate them in coin handling. AI is integrated into providing better
customer service, account creation, practical assistance, and more (Alia Parpia and Zubin
Taraporevala, 2020).
Adopting Enterprise Architecture which meshes, data, application, technology, and the
business through a modular approach, that leave rooms for other innovations (modules) to be
plugged in the nearest future will be a considerable under-lay (foundation) upon which other
digital tools such as Machine Learning, AI, Data Analytics, collaboration, and cloud etc. will
ride on as over-lay. Once this foundation is solidly developed, plugging in different future
innovations become easier. CIO (2018) reports describes The Open Group Architectural- Forum
(TOGAF) Enterprise Architecture as framework like other IT management frameworks that
assists businesses, align IT goals with overall business goals while driving cross-departmental IT
capabilities. It also helps businesses itemize and assemble must-haves before a project starts,
thereby making the process to move swiftly with few errors.
49

CHAPTER FIVE: CONCLUSION AND RECOMMENDATION
5.1 Conclusion
From the above detailed discussions, it can be concluded that digital transformation is an
important concept to learn, explore, review, and steps should be taken to improve on strategies
for its adoption and continual innovations. It is now impossible for organizations to survive
without adopting advanced and updated technologies as the distance between customers and
service providers continually narrows due to the proliferation of innovative and disruptive
technologies, driven by digital transformation. Any organization that lags in the adoption of
these technologies easily loss clientele base. Without a doubt, customers’ expectations and
imaginations continually widens by day. At the same time, many organizations are thinking on
how to plug in new ideas into their existing businesses models that will simplify business
processes, decrease time to complete processes/transactions, automate where necessary to make
service subscription effortless. A typical bank and other financial services companies such as
insurance and exchange services have most of their processes driven by technology.
The continuous innovations of banks like JP Morgan Chase are driven by reticulation
among various technology and business experts such as business analysts, enterprise and security
architects, data analyst, infrastructure engineers, and others from various business units. For the
technology unit, the ship is steered by the Chief Information Officer (CIO) and for the business
unit, its chaired by other C-level executives such as Chief Executive Officer, Chief Financial
Officer (CFO) and Chief Operating Officer (COO). Interestingly only the CIO straddles between
the business and technology. A CIO is usually starting his career from the technical side and
gradually drifts into the business areas and by such experience, he speaks both business and
technical languages. Freshservice, an online publisher on technology in an article, "Chief
Information Officer (CIO) - The role of a CIO and how it’s evolving" stated that “The CIO must
understand the technology in use by the company today and where technology trends are going.
They must also understand the company’s business strategy and market dynamics to advise
business leaders on technology investment choices.” That is why his role is the most critical in
any transformational process.
50

The different teams mentioned above help with direction on why, when, what as well as
how to achieve digital or transformation goals, and their jobs continually evolve around these
goals endlessly. They support the HR on the scouting for best hands and best skills unceasingly
in order to keep up with the scheme of things in respect to innovative ideas.
Hence, the above information is based on determining the effects of digital
transformation and how that can help people and other commercial entities, particularly the
financial sector, in the context of the global COVID-19 pandemic. The research objectives have
been achieved through by the examining the suitable primary and secondary data sources.
Based on primary data
The conclusions discussed in this section fall in line with the four objectives of this
research. The leverage of both questionnaire and interviews helped to gathered data that
strengthen the argument that digital transformation in the banks make the lives of customers
easier. Many customers agree with the conclusion. The data collated further indicated that digital
transformation has several benefits such as flexibility and adaptability, transformed reporting
capabilities, and consolidation of data, applications, and processes. For banks, it was arrived at,
that the key advantage of digital transformation is increased flexibility and agility (Chetty,
Friedman, Hendren and Stepner, 2020). According to the respondent, digital transformation
enables banks to shift from various old systems which provides numerous benefits, including
scalability, integration and cost-effectiveness. It was gathered that digital transformation
impacted banking customers during the COVID-19 pandemic in both negative and positive
manner. It can be concluded that digital transformation is essential for financial services at the
time of COVID-19 and beyond. As per most respondents, there is a positive impact of digital
transformation of banks on the customers in a pandemic. As gathered, mergers and acquisitions
are widespread in the banking industry. The use of a cloud-based enterprise resource planning
(ERP) system makes merging banks processes simple and scalable.
Based on the literature review
51

The secondary data sources (literature review) identified and analysed the aspects of
digital transformation, the process, and the scope, along with the benefits and effectiveness in the
banking sector of the US finance industry. It is illustrated in the study that digitalizing process of
banking needs to be effective, efficient, and secured to protect customers’ data along with all the
technical expertise of the current time frame so that the systems can perform well and do not get
outdated at any point. The first objective focuses on the impact of the digital transformation on
banks and people during COVID-19 in the context of the US banking sector. The banks' main
goal is to deliver effective services in the context of transactions, transfers, payments, payment
gateways, and inter-switching without having to go to another branch or bank.
The second objective focuses on the shift and management of digital transformation. It
considered the management perception and social perception. The management perspective
identifies how most banks in the United States are working toward digitalization which was
further accelerated by the Covid-19 pandemic. In context to the social perception, the rising of
this change has already begun. Digitalization in banks helps the banks to clearly define roles and
responsibilities of the board of directors, CIO, CFO, and other C-level executives in relation to
“digital processes”, and how they are positioned as trusted advisors through their in-depth
knowledge, experience, and digitally driven decision-making capabilities.
The third and last objectives examine the effective Ways to Implement the features of
digital transformation in the financial sector. This includes defining strategic direction, aligning
the organization to the strategic goal, adaptively implementing the strategy, stimulate local
innovation, improvement, and learning and stay compliant with applicable regulations.
5.2 Recommendations
JP Morgan Chase can leverage embedded finance for further support in the functioning of the
bank. This can offer a more seamless financial services for consumers' everyday experience
through an integration with non-financial products. Renovation to the business using Machine
learning, robotics and artificial learning technologies is highly suggested with the help of
extensive data management and installing its security as well. The adoption of Open banking
(API) will help the bank open up its application programming interfaces (APIs), allowing third
parties to have access to financial data required to develop new apps and services and providing
52

customers greater financial transparency options. All such transformation requires the promotion
of an external instead of internal orientation. It also includes delegation over control and
encourages boldness over caution (Omarini, 2017).
The JPMorgan need to enhance the feature of their websites such as data privacy, banner
alert and notifications as the major touchpoints for the customers. It means it must be a user-
friendly and easy layout for simple navigation through the website (Pashkov, and Pelykh, 2020).
It is recommended that the JPMorgan should continually innovate in the area of data
analytics to unbundle opportunities around transactions of insurance contracts, and or entirely
change the auto insurance business model to be more inclusive and comprehensive (Pyatina, et
al., 2020).
It is suggested that banks simplify the financial concepts by providing the explainer videos so
that customers can get clarification regarding the financial services rendered by banks. The
JPMorgan should also consider creating a YouTube channel to provide information-rich contents
to their customers as well as use email and mobile marketing in the form of internal emailing
system for better security concerns and more of electronic transaction with the help of mobile
technology (Baur, 2020).
Embracing social media channels like twitter, Instagram, LinkedIn, Facebook etc. would be
an easy ride for the bank to manage younger generation or next generation customers
perceptions, feedback, thoughts which will help them in making targeted and specific responses
and decisions. (Marin Valchev, 2021).
Social media applications like Facebook and Instagram are for the customers who are more
socially connected with the people and take their daily updates of different news via social media
applications. YouTube is for the customers who uses videos to understand each and very thing to
gain knowledge in the form of videos. Other applications like Twitter are for the customers who
likes to view updates and post of an individual and sharing their views (Kreitstshtein, 2017).
In addition, it is suggested that the bank must expand with the open banking application
programming interfaces. This facilitates the customers and the easy rendering of the services
effectively and efficiently (Kaur, et. al., 2021).
53

Furthermore, it is also suggested that the bank considers moving some of its IT infrastructure
to the cloud computing because it provides flexibility, agility, and scalability in its management
and operations. This activity is owned by the technical experts so that they can safeguard the big
data of customers and prevent any cyber-attack (Handana Asif, Klaus, Dallerup, Stephanie
Hauser, Alia Parpia, 2020).
The most important recommendation is that the bank must continually optimize its cyber
security capabilities. The Payment Card Industry Data Security Standard (PCIDSS), ISO 2701-
Information Security Management System (ISMS), National Institute on Standards and
Technology (NIST 800-53) are common guidelines being followed by banks to offer security for
data, applications, infrastructure, and their cloud architecture. NIST SP 800-53, Risk
Management Framework (RMF V5) identifies three key controls areas for information security.
This includes, management controls such as security awareness training, technological controls
which include the deployment of security mechanisms such as firewall, Intrusion Prevention
System, Security Information and Even Management (SIEM), Security operations centre,
orchestration and security automation, continuous monitoring, vulnerability management and
pen testing, among others. Another Operational control includes measures to ensure that business
stay in operation even during eventualities such as disaster recovery and backup among other. It
can be done by using strong passwords against any private and important data with proper
authentication and authorization while using the technology of encryption and decryption.
Extensive data management is crucial because if it is breached or lost, it can result in a bad
reputation for the customers and the management of the bank. Therefore, it is essential to focus
on cyber security (Handana Asif, Klaus, Dallerup, Stephanie Hauser, Alia Parpia, and Zubin
Taraporevala, 2020).
JP Morgan should continually invest in training its IT and other technology teams in order to
stay up to date in the scheme of things. This will ensure constant capabilities to drive the
business processes through innovations. A good practice is to consider the specialised software
like IBM’s Trusteer Rapport. It gives the additional protectional layer against the phishing
redirections and attacks to the fake websites (Dang, and Vartiainen, 2020). Rapport protects
information entered by users, like account numbers and PINs, from becoming stolen through
harmful software like Trojans, when used in conjunction with anti-malware measures and
54

firewalls. From the CIO to different IT and technology architects and engineers it will be
responsible for re-engineering, rearchitecting, optimizing and transforming processes with
cybersecurity, while also identifying technology and security gaps within the organization so that
specific responses could be initiated. The bank has a sizable number of Enterprise Architects
whose responsibility within the context of digital transformation drive Enterprise Architecture
through strategy and technology innovations to facilitate trendspotting and innovation efforts to
rapidly identify and respond to market opportunities and disruptions. These professionals are
responsible for hand-shaking technology with data, applications, and the business in a modular
approach, while creating opportunities that allow new technologies and capabilities to be
plugged in the future (Das, 2020).
5.3 Evaluation of study and scope
This is notable because the learning experience that I had in conducting this investigation
provided me a chance to increase my knowledge regarding the effectiveness of digital
transformation in banks during the COVID-19 pandemic. I had an opportunity to grasp numerous
sections of a study with this research, for example, the literature review, research methodology,
and data analysis. I also learned about various study techniques available for investigators to
finish their investigation and achieve their research objectives successfully.
Conducting the present investigation was helpful for me in enhancing my research skills
effectively as well. In the future, this study will provide knowledge that would help to perform
all research activities effectively and obtain positive research outcomes. It will further be
continued by overcoming the weaknesses and problems faced during the research and ensuring
that it adopts all the beneficial activities for the future.
In terms of the overall research, it has been determined that the current study utilizes
positivism research philosophy. In contrast, interpretivism might have been better to offer a
clearer picture of the topic. While the deductive research approach was applied for this study, an
inductive approach may have been suggested, as it depends on qualitative methods and provides
a general understanding (Fairooz and Wickramasinghe, 2019).
In this investigation, the quantitative approach was used. However, qualitative research
methods could be considered in the future, as they provide a theoretical description of the topic
and trends on specific issues. To gather evidence for this research, a survey method was
55

considered. The alternative method: an interview could be conducted. A researcher has the
ability of focusing on other aspects, features and qualities that will help in the digital
transformation of banks, which is expected to broaden the scope of the research.
Finally, all these research methods can help an investigator perform a similar
investigation in the future.
5.4 Further Research Areas
In the future, the focus of the research should be tailored towards exploring and
expanding the dynamics of digital transformation capabilities in other sectors such as oil and gas,
telecom, retail, entertainment, commercial, etc. Further works should look at integrating digital
technologies across different sectors to streamline the interconnectivity process among other
sectors. This will reduce the amount of time to complete the transaction due to the preponderance
of collaboration technologies connecting different service providers. It is also expected to drive
more revenue and open more rooms for intersectoral risk management processes. (Hertz, 2021).
The fundamental driver of digital transformation, digital innovation gives rise to new
goods and services, creates opportunities for new business models and markets, and can drive
efficiencies in the financial sector and beyond (OECD 2020). Continuous innovation can be put
in place and continue to mature the existing digital capabilities in terms of access, use and
innovation. With lockdowns and social distancing measures resulting from the COVID-19
pandemic, many businesses were forced to go online. The COVID-19 crisis has reinforced the
importance of communications infrastructures and services, as well as access to and robust
governance of data. As more people and firms “go digital” following the COVID-19 crisis, the
financial sector must ensure that all workers are equipped with the skills necessary to succeed in
the digital economy and must do more to enhance use across small- and medium-sized
businesses enterprises (SMEs).
56

REFERENCES
Al Kilani, M., (2016). An overview of research methodology in information systems (IS). Open
Access Library Journal. 3(11). p.1.
Ananda, S., Devesh, S. and Al Lawati, A. M., (2020). What factors drive the adoption of digital
banking? An empirical study from the perspective of Omani retail banking. Journal of
Financial Services Marketing. 25. pp.14–24.
Andrus, G., Kejriwal, S. and Wadhwani, R., 2016. Digital transformation in financial services:
The need to rewire organizational DNA. Dostupnonapoveznici: https://www2. Deloitte.
com/insights/us/en/industry/financial-services/digital-transformation-in-financial services.
HTML (18.12. 2017.). (Accessed on: December 18, 2021)
Asian Journal of Economics, Finance, and Management, pp.69–78.
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,
15.
Bajpai, N. and Biberman, J., (2020). Columbia Academic common - Columbia University
Libraries, The COVID-19 economy: Building a sustainable future in the shadow of a crisis.
Bankuoru Egala, S., Boateng, D. and Aboagye Mensah, S. (2021). & quot; To leave or retain?
An interplay between quality digital banking services and customer satisfaction &
quot; International Journal of Bank Marketing, 39 (7). pp. 1420
1445. https://doi.org/10.1108/IJBM-02-2021-0072.
Baur, P.W., (2020). An examination of the impact of COVID-19 on the financial markets and
how this directs investment into the market for fine art. Journal of Economic and Financial
Sciences, 13(1), p.22.
Bhasin, N. K., and Rajesh, A., (2021). Impact of e-collaboration between Indian banks and
Fintech companies for digital banking and new emerging technologies. International Journal
of e-Collaboration (IJeC). 17(1). pp.15–35.
Bresler, L. and Stake, R. E., (2017). Qualitative research methodology in music education.
Critical Essays in Music Education. pp.113–128.
Chanias, S., (2017). Mastering digital transformation: the path of a financial services provider
towards a digital transformation strategy.
Chetty, R., Friedman, J.N., Hendren, N. and Stepner, M., (2020). The economic impacts of
COVID-19: Evidence from a new public database built using private sector data (No.
w27431). national Bureau of economic research.
CIO reports, By Sarah K. White, CIO AUG 10, 2018
https://www.cio.com/article/228328/what-is-togaf-an-enterprise-architecture-
methodology-for-business.html [Date Accessed: March 2,2022]
57

Cuesta, C., Ruesta, M., Tuesta, D. and Urbiola, P., (2015). The digital transformation of the
banking industry. BBVA research, pp.1-10.
Czerwińska, T. et al., (2021). Digital transformation in banks of different sizes: evidence from
the Polish banking sector. In Fostering Innovation and Competitiveness with FinTech,
RegTech, and SupTech (m). IGI Global.
Dang, D. and Vartiainen, T., (2020). Changing patterns in the process of digital transformation
initiative in established firms: the case of an energy sector company. PACIS 2020
Proceedings.
Das, S., (2020). Innovations in digital banking service brand equity and millennial consumerism.
In Digital Transformation and Innovative Services for Business and Learning (pp.62–79).
IGI Global.
Demirgüç-Kunt, A., Pedraza, A., & Ruiz-Ortega, C. (2021). Banking sector performance during
the covid-19 crisis. Journal of Banking & Finance, 133, 106305.
Dermine, J., 2016. Digital banking and market disruption: a sense of déjà vu? Financial Stability
Review. 20. pp.17–25.
Diener, F. and Špaček, M., (2021). Digital Transformation in Banking: A Managerial Perspective
on Barriers to Change. Sustainability, 13(4), p.2032.
Disemadi, H. S. and Shaleh, A. I., (2020). Banking credit restructuring policy amid COVID-19
pandemic in Indonesia. JurnalInovasiEkonomi. 5(2), p.107.
Dźwigoł, H., (2018). Scientific research methodology in management sciences. (2). pp.424–437.
Egala, S. B., Boateng, D., & Mensah, S. A. (2021). To leave or retain? An interplay between
quality digital banking services and customer satisfaction. International Journal of Bank
Marketing.
Etembekov, R. K., 2021. Digital transformation of banking services in Russia. European Journal
of Natural History. (1). pp.13–18.
Retrieved on 01/28/2022, from: https://www.bera.ac.uk/publication/ethical-guidelines-for-
educational-research-2018-online. Accessed on: (February 08,2022).
Fairooz, H. M. M. and Wickramasinghe, C. N., (2019). Innovation and development of digital
finance: a review on digital transformation in banking & financial sector of SriLanka.
Fedotova, G. V. et al., (2018). April. Peculiarities of digital transformation of the system of
bank’s economic security. In International Conference Project “The Future of the Global
Financial System: Downfall of Harmony” (pp.1104–1112). Springer, Cham.
Finance transformation Transform finance to drive strategic value through technology, digital
innovation, upskilling, and new ways of working.
https://www.pwc.com/us/en/services/consulting/finance-transformation.html?
WT.mc_id=CT3-PL300-DM1-TR1-LS40-ND40-PRG7-
CN_FinanceTransformationFinanceTransformationGoogle&gclid=CjwKCAiAg6yRBhBNE
iwAeVyL0ESALgsU_ALSPsc2_8skDc7SKxKuU0ejoUAZwjozWAN7mXUVSQD_QhoCq
LIQAvD_BwE&gclsrc=aw.ds [Date Accessed: March 2,2022]
Freshservice, an online publisher on technology in an article "Chief Information Officer (CIO)
- The role of a CIO and how it’s evolving"
https://freshservice.com/chief-information-officer?freshservice.com/ITSM-
Helpdesk&utm_source=Google-AdWords&utm_medium=Search-DSA
%2BSimilar_Audience-USt&utm_campaign=Search-DSA%2BSimilar_Audience-
US&utm_term=&device=c&gclid=Cj0KCQiAybaRBhDtARIsAIEG3kn7c8WASdsVVMJe
58

27IbBPbYQ9ETVuBjmZQjDE3CJJkwGMcl5L71uNgaAvdsEALw_wcB [Accessed by :
March 5,2022]
Galazova, S. and Magomaeva, L. (2020). The Transformation of Traditional Banking Activity in
Digital, International Journal of Economics and Business Administration. 7(2). pp. 41-51.
Goldberg, P.K. and Reed, T., 2020. The effects of the coronavirus pandemic in emerging market
and developing economies: An optimistic preliminary account. Brookings papers on
economic activity, 2020(2), pp.161-235.
Golubev, A., Ryabov, O. and Zolotarev, A., (2020). September. IOP Publishing. Digital
transformation of the banking system of Russia with the introduction of blockchain and
artificial intelligence technologies. In IOP Conference Series: Materials Science and
Engineering (Vol. 940, No. 1, p. 012041).
Hadad, S. and Bratianu, C., (2019). Dematerialization of banking products and services in the
digital era. Management & Marketing, 14(3). pp. 318-337.
Haralayya, B., (2021). How digital banking has brought innovative products and services to
India. Journal of Advanced Research in Quality Control and Management. 6(1). pp.16 18.
Harvey, D., 2016. Digital transformation in banks: the trials, opportunities, and a guide to
important. Journal of Digital Banking. 1(2). pp.136–145.
Hepburn and et. al., 2020. Will COVID-19 fiscal recovery packages accelerate or retard progress
on climate change?. Oxford Review of Economic Policy, 36(Supplement_1), pp.S359-S381.
Hertz, L., (2021). Benefits of Digital Transformation in the Finance Industry. [Online]. Retrieved
from: https://medium.com/geekculture/benefits-of-digital-transformation-in- finance-
industry-2bb301fabd9c&gt. (Accessed on: December 14, 2021).
Hertz, L., (2021). Benefits of Digital Transformation in the Finance Industry. Available at:
https://medium.com/geekculture/benefits-of-digital-transformation-in-finance-industry-
2bb301fabd9c (Accessed: 30 December 2021).
High, P. (2021) Wells Fargo’s Head of Tech Plots a Strategy for Innovation, Forbes. Available
at: https://www.forbes.com/sites/peterhigh/2021/02/05/wells-fargos-head-of-tech-plots-a-
strategy-for-innovation/?sh=5b3bf6e44442 (Accessed: 30 December 2021).
Igwenagu, C., (2016). Fundamentals of Research Methodology and Data Collection. LAP
Lambert Academic Publishing.
Jan Bellens (2021). Three ways COVID-19 is changing how banks adapt to digital technology.
Retrieved from https://www.ey.com/en_us/banking-capital-markets/three-ways-covid-19-is-
changing-how-banks-adapt-to-digital-technology. (Accessed on: December 08, 2021).
Kaur, R. et al., (2020). Intelligent voice bots for digital banking. In Smart Systems and IoT:
Innovations in Computing (pp.401–408). Springer, Singapore.
Kaur, S. J. et al., (2021). Adoption of digital banking channels in an emerging economy:
exploring the role of in-branch efforts. Journal of Financial Services Marketing. 26(2).
pp.107–121.
Kitsios, F., Giatsidis, I. and Kamariotou, M., (2021). Digital transformation and strategy in the
banking sector: evaluating the acceptance rate of e-services. Journal of Open ace Innovation:
Technology, Market, and Complexity. 7(3). p.204.
Kreitstshtein, A., (2017). Digital transformation and its effects on the competency framework: a
case study of digital banking. Journal of Management and Planning in Educational
System, 12(2), pp.211-242.
Kumar, R., (2018). Research Methodology: A Step-by-step Guide for Beginners. Sage.
59

LoGiudice, S.H., Liebhaber, A. and Schöder, H., 2020. Overcoming the COVID-19 crisis and
planning for the future. Journal of Nuclear Medicine, 61(8), p.1096.
Luhach, R., Jha, C. K. and Luhach, A. K., (2018). Efficient digital filter banking algorithm for
wireless VoIP. In International Conference on Advanced Informatics for Computing
Research (pp.806–814). Springer, Singapore.
Marin Valchev. (2021). 10 Innovations that deliver the digital banking of the future, retrieved
from https://www.softwaregroup.com/insights/blog/article/10-innovations-that-deliver-the-
digital-banking-of-the-future-today. (Accessed on: February 08, 2022)
Martin, V. (2019). Reshaping banking industry through digital transformation. FINIZ 2019
Digitization and Smart Financial Reporting. pp.31–36.
Melnychenko, S., Volosovych, S. and Baraniuk, Y., (2020). Dominant ideas of financial
technologies in digital banking. Baltic Journal of Economic Studies. 6(1). pp.92–99.
Mikhaylov, A. M. and Petrov, N. A., (2021). Features of digital transformation of everyday
banking transactions. In Current Achievements, Challenges and Digital Chances of
Knowledge-Based Economy (pp. 673–681). Springer, Cham.
Mikhaylov, A.M., and Petrov, N.A., (2021). In Current Achievements, Challenges and Digital
Chances of Knowledge Based Economy (pp. 673-681). Features of Digital Transformation
of Modern Banking Transactions. Springer, Cham.
Mishra, S. B., and Alok, S., (2017). Handbook of research methodology. Edu creation.
Mohajan, H. K., (2018). Qualitative research methodology in social sciences and related
subjects. Journal of Economic Development, Environment, and People. 7(1). pp.23–48.
Nayak, J. K. and Singh, P., (2021). Fundamentals of Research Methodology Problems and
Prospects. SSDN Publishers & Distributors.
Nguyen, D. N., Nguyen, D. D. and Nguyen, D. V., (2020). Distribution information safety and
factors affecting the intention to use digital banking in Vietnam. The Journal of Distribution
Science. 18(6). pp.83–91.
Nguyen, N. T. H., Kim-Duc, N. and Freiburghaus, T. L., (2021). Effect of digital banking-related
customer experience on banks’ financial performance during Covid-19: a perspective from
Vietnam. Journal of Asia Business Studies. 10(2). pp.48–11.
Nguyen, O. T., (2020). Factors affecting the intention to use digital banking in Vietnam. The
Journal of Asian Finance, Economics, and Business. 7(3). pp.303–310.
NIST Risk Management Framework RMF: SP 800-53 Release Search: Updated March 15, 2022
https://csrc.nist.gov/Projects/risk-management/sp800-53-controls/release-search#/
Date Accessed: March 31,2022]
OECD (2020). “Making the digital transformation work: An integrated policy framework”
(webpage), https://www.oecd.org/ going-digital/framework/. Accessed on February 14,
2022.
Okano, M. T., Antunes, S. N. and Fernandes, M. E., (2021). Digital transformation in the
manufacturing industry under digital platforms and ecosystems optics. Independent Journal
of Management & Production. 12(4). pp.1139–1159.
Omarini, A. (2017). The digital transformation in banking and the role of FinTech in the new
financial intermediation scenario. International Journal of Finance, Economics, and Trade
(IJFET), 1 (1). pp. 1-6.
Pashkov, P. and Pelykh, V., (2020). Digital transformation of financial services based on
trust. Economic and Social Development: Book of Proceedings. pp.375–383.
60

Prasad, E., (2018). Central banking in a digital age: Stock-taking and preliminary thoughts.
Hutchins Center on Fiscal & Monetary Policy at Brookings.
Pyatina, E. A. et al., (2020). Analysis of the digital profile of the financial market: a
methodological approach of Russian Central Bank. In SHS Web of Conferences (Vol. 80,
p.01023). EDP Sciences.
Schwertner, K. (2017). Digital transformation of business. Trakia Journal of Sciences, 15(1),
pp.388-393.
Sebastian, I. M. et al. (2020). How big old companies navigate digital transformation. In
Strategic Information Management (pp.133–150). Routledge.
Shubenok, P. (2021). Digital Transformation in the Banking Sector: The Keys of a Successful
Launch. [Online]. Retrieved from: https://www.finextra.com/blogposting/20837/digital
transformation-in-the-banking-sector-the-keys-of-a-successful-launch> (Accessed on:
February 08, 2022)
Snyder, H., (2019). Literature review as a research methodology: an overview and guidelines.
Journal of Business Research. 104. pp.333–339.
Son, Y. et al. (2020). Impact of customers digital banking adoption on hidden defection: a
combined analytical–empirical approach. Journal of Operations Management. 66(4).
pp.418–440.
Sonono, B. and Ortstad, R., (2017). Business Performance and Financial Institutions in Europe:
The effects of the digital transformation process on banks’ relationship with customers: a
large Swedish bank case study.
Stackpole, B. (2021). Digital Transformation after the Pandemic. [Online]. Available through:
https://mitsloan.mit.edu/ideas-made-to-matter/digital-transformation-after-pandemic
(Accessed on: 30 January 2022).
Taherdoost, H., (2016). Sampling methods in research methodology; choosing a sampling
technique for research. How to Choose a Sampling Technique for Research (April 10,
2016).
Vinayak Pujari,Sachin S Bhosale,Zameer Multani,2020. Advantages And Disadvantages Of
Artificial Intelligence .https://www.researchgate.net/profile/Vinayak-Pujari-2/publication/
344584269_Advantages_And_Disadvantages_Of_Artificial_Intellegence/links/
5f81b70192851c14bcbc1d96/Advantages-And-Disadvantages-Of-Artificial-Intellegence.pdf
(Accessed on: 26 April 2022).
Vasiljeva, T. and Lukanova, K. (2016). Commercial banks and FINTECH companies in the
digital transformation: Challenges for the future. Journal of Business Management, (11).
pp.25-33.
Vishnuvardhan, B., Manjula, B. and Lakshman Naik, R., (2020). A study of digital banking:
Security issues and challenges. In Proceedings of the Third International Conference on
Computational Intelligence and Informatics (pp.163–185). Springer, Singapore.
Vives, X. (2019). Digital disruption in banking. Annual Review of Financial Economics. 11.
pp.243–272.
Wadesango, N. and Magaya, B. (2020). The impact of digital banking services on performance
of commercial banks. Journal of Management Information and Decision Sciences. 23.
pp.343–353.
Wallace and et. al., (2020). COVID-19 and Circuits of Capital. Monthly review, 72(1), pp.1-13.
Walter, M. and Andersen, C. (2016). Indigenous Statistics: A Quantitative Research
Methodology. Routledge.
61

Wewege, L, Lee, J. and Thomsett, M.C., (2020). University of London, Centre for Financial and
Management Studies: The Digital Banking Transformation: Disruption, Synergy toward
FinTech Frontier.
Zangirolami-Raimundo, J., Echeimberg, J. D. O. and Leone, C., (2018). Research methodology
topics: cross-sectional studies. Journal of Human Growth and Development. 28(3). pp.356–
360.
М. K., (2021). Digital transformation of financial management at the enterprise (Master’s thesis).
62

APPENDIX
Ethics form Taught-Ethics-Application-Form-SBS
63

64

65

66

67

68

69

QUESTIONNAIRE
Close-ended questions.
Q1) Does your bank implementing digital transformation make customers’ life easier?
a) Yes
b) No
Q2) What are the benefits of digital transformation in the context of banks?
a) Gain flexibility and adaptability
b) Consolidate data, applications, and processes
c) Transform reporting capabilities
Q3) What are the various areas of digital transformation in banks?
a) Online and mobile banking applications
70

b) Fraud detection systems
c) Virtual assistants
d) Better market predictions
Q4) What are the various kinds of online banking?
a) Deposits and payments
b) Debit card
c) E-statement
Q5) According to you, does a digital transformation seem necessary for financial services during
COVID-19?
a) Yes
b) No
Q6) How did the digital transformation impact the customers in the context of banking during
the COVID-19 pandemic?
a) Positive manner
b) Negative manner
Q7) What are the different issues customers may face while using digital banking?
a) Traditional banking habits
b) Security
c) Transactional difficulty
d) technical issues
Q8) What are the effective ways to overcome the issues faced while customers consider digital
banking?
a) Enhance online banking awareness
b) Explain online banking security
71

c) Speed up the transaction time
d) Implement advanced technology
Q9) What are the different ways banks can be used to improve online security?
a) Multi-factor authentication
b) End-to-end encryption
c) Secure code and architecture
d) Enable real-time alerts
open-ended question
Q10) Recommend ways in which banking software solutions help banks overcome challenges
72