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TopIntroduction
The banking industry plays an essential role in the daily life of modern society worldwide. From its inception, innovation is not new to the global banking system, evolving from the utilization of coins, banknotes, ATMs, and the lending system. Likewise, technology and innovation in the banking sector have transformed from time to time (Scardovi, 2017). Disruptive innovation, digitalization, and new technology are transforming traditional business models and processes. As a result, banks should modify their business strategies to change how they interact with customers, handle middle and back-office operations, be competitive, and be prepared for the future (Kitsios & et al., 2021).
New banking and financial payment methods have emerged due to the widespread adoption of the internet and mobile devices worldwide. Digital banking was established as a cutting-edge, practical, and effective method of financial transactions. There are numerous types of digital banking available right now, including mobile wallets, online banking, internet banking, and electronic banking (Alkhowaiter, 2020). Typical functions include viewing balance inquiries, transferring funds, and payment. When the economic crisis rose caused by the global COVID-19 pandemic, digital banking became an enabler in facilitating the business transaction. The digital ecosystem linked banks to entrepreneurs, suppliers, employees, and new markets. Governments attempt to promptly and effectively dispense assistance to those in need. Simultaneously, digital banking allows for social distancing and helps foster financial inclusion in remote or impoverished places where financial institutions are not physically present.
The banking industry invests in digital banking to obtain substantial benefits and remain competitive with the challenges of digitalization during and beyond the pandemic. For practitioners, this study will provide practical guidance based on a detailed analysis of challenges and technology that could be used to develop strategies that help improve the adoption and performance of digital banking. For academics, understanding the literature gap will set the agenda for future research directions. In particular, this systematic literature review (SLR) -based study attempts to achieve the following three objectives:
- 1.
Determine the definition and state-of-the-art digital banking research.
- 2.
Investigate the challenges of digital banking.
- 3.
Identify future research agenda.
This paper is organized as follows: The Methodology section describes the methodology of SLR. In the Results and Discussion section, The authors discuss various results of the SLR and recommendations for future digital banking research. Finally, the Practical and Managerial section presents practical and managerial implications, and the Conclusion section presents the conclusion.
TopMethodology
The methodology used in this research is SLR. Kitchenham procedure was selected as a “standardized method” for literature reviews that is replicable, transparent, and objective (Boell & Cecez-Kecmanovic, 2016). The SLR method enables finding out the trends of research topics that are of great interest to previous researchers so that this can be used as a reference for further research. The stages of this SLR-based research are described as follows (Kitchenham & Brereton, 2013):