Title: Digital transformation and bank performance: case of commercial banks in Vietnam

Authors: Tam Phan Huy; Yen Nguyen Ngoc Nhu; Tuyen Vo Thi Kieu; Duong Dinh Nguyen Khanh; Tuyet Pham Hong; Kien Nguyen Huu

Addresses: University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, No. 669, Highway 1, Quarter 6, Linh Xuan Ward, Thu Duc City, Ho Chi Minh City, Vietnam ' University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, No. 669, Highway 1, Quarter 6, Linh Xuan Ward, Thu Duc City, Ho Chi Minh City, Vietnam ' University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, No. 669, Highway 1, Quarter 6, Linh Xuan Ward, Thu Duc City, Ho Chi Minh City, Vietnam ' University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, No. 669, Highway 1, Quarter 6, Linh Xuan Ward, Thu Duc City, Ho Chi Minh City, Vietnam ' University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, No. 669, Highway 1, Quarter 6, Linh Xuan Ward, Thu Duc City, Ho Chi Minh City, Vietnam ' University of Economics and Law, Ho Chi Minh City, Vietnam; Vietnam National University, No. 669, Highway 1, Quarter 6, Linh Xuan Ward, Thu Duc City, Ho Chi Minh City, Vietnam

Abstract: Digital transformation in the Vietnamese banking sector plays a crucial role in influencing bank performance. This research examines the impact of digital transformation through three key dimensions: strategic, business, and management transformation. Using regression models and data from annual reports, digital channels, and organisational restructuring metrics, the study reveals that strategic transformation - measured by the frequency of digital terms in reports - significantly enhances bank performance. However, business and management transformations did not show a statistically significant relationship. The findings suggest that aligning digital initiatives with core banking strategies is essential for achieving performance improvements. These insights provide valuable guidance for investors, managers, and policymakers navigating the digital transformation process in Vietnam's banking industry.

Keywords: digital transformation; banks; Vietnam.

DOI: 10.1504/IJRM.2024.143449

International Journal of Revenue Management, 2024 Vol.14 No.4, pp.361 - 396

Received: 05 Apr 2024
Accepted: 04 Sep 2024
Published online: 20 Dec 2024 *

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