Riassunto analitico
Banking institutes play a major role in every country’s economic development. Specially Sri Lanka as a developing country highly depends on the financial sector including banking institutes, for their economic development. Therefore, the profitability of the financial industry is really important to every aspect of the country. Since the world is transforming towards a digital era and in the face of global health crises, changing habits of consumer behaviours drive banks naturally towards adopting the digital transformation for their establishments. Therefore, digital transformation and the innovation in technology in banking institutes create opportunities for growth for banking institutes and opportunities to remain profitable in this challenging environment.
In this study, the researcher investigated the influence of digital transformation (Dx) on the financial performance of commercial banks in Sri Lanka. Financial performance of the banking institutes is determined by several factors. Therefore, identifying significant factors of financial performance is important as it directly affects profitability and ensures stability of institutional operations.
The research question of this study is derived from the above discussed information. It concerns the relationship between the elements of digital transformation and the impact it has on the financial performance of banking institutes in Sri Lanka. Therefore, this study answers the research question “Does Digital transformation (DX) have an impact on financial performance of banking institutes in Sri Lanka?”. To answer the above major question the researcher adopted the methodology of analysing annual report data of five major commercial banks in Sri Lanka for a period of nine years from 2011 to 2019. The analysis was conducted using identified variables related to financial performance and digital transformation discussed in literature. Findings were drawn based on evaluating the following perspectives: 1. Identification of the new trends and key technologies of banking institutes in Sri Lanka? 2. The key items and performance indicators of banking institutes in reference to Digital Transformation 3. Major criteria of measuring profitability of banking institutes and 4. The impact Digital Transformation has on the banking financial performance in Sri Lanka.
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Abstract
Banking institutes play a major role in every country’s economic development. Specially Sri Lanka as a developing country highly depends on the financial sector including banking institutes, for their economic development. Therefore, the profitability of the financial industry is really important to every aspect of the country. Since the world is transforming towards a digital era and in the face of global health crises, changing habits of consumer behaviours drive banks naturally towards adopting the digital transformation for their establishments. Therefore, digital transformation and the innovation in technology in banking institutes create opportunities for growth for banking institutes and opportunities to remain profitable in this challenging environment.
In this study, the researcher investigated the influence of digital transformation (Dx) on the financial performance of commercial banks in Sri Lanka. Financial performance of the banking institutes is determined by several factors. Therefore, identifying significant factors of financial performance is important as it directly affects profitability and ensures stability of institutional operations.
The research question of this study is derived from the above discussed information. It concerns the relationship between the elements of digital transformation and the impact it has on the financial performance of banking institutes in Sri Lanka. Therefore, this study answers the research question “Does Digital transformation (DX) have an impact on financial performance of banking institutes in Sri Lanka?”. To answer the above major question the researcher adopted the methodology of analysing annual report data of five major commercial banks in Sri Lanka for a period of nine years from 2011 to 2019. The analysis was conducted using identified variables related to financial performance and digital transformation discussed in literature. Findings were drawn based on evaluating the following perspectives: 1. Identification of the new trends and key technologies of banking institutes in Sri Lanka? 2. The key items and performance indicators of banking institutes in reference to Digital Transformation 3. Major criteria of measuring profitability of banking institutes and 4. The impact Digital Transformation has on the banking financial performance in Sri Lanka.
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