Strategic Control model for implementing Digital Banking in Iranian Banking System
Aim and Introduction: Banking industry today is facing a great increase in competition as well as other industries and it moving toward newer banking methods to get along with technological improvements in order to create competitive advantages, is an undeniable necessity. Researches show that the...
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| Format: | Article |
| Language: | fas |
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Iran Strategic Management Society
2022-06-01
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| Series: | مطالعات مدیریت راهبردی |
| Subjects: | |
| Online Access: | http://www.smsjournal.ir/article_133676_b26c24725523fc331d3fa465a1f7a6d1.pdf |
| _version_ | 1797893932859785216 |
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| author | fateme anisi Seyyed Kazem Chavoshi |
| author_facet | fateme anisi Seyyed Kazem Chavoshi |
| author_sort | fateme anisi |
| collection | DOAJ |
| description | Aim and Introduction: Banking industry today is facing a great increase in competition as well as other industries and it moving toward newer banking methods to get along with technological improvements in order to create competitive advantages, is an undeniable necessity. Researches show that the banking method is changing from traditional banking to digital banking. Digital banking means to digitalize all steps and processes done by banks and monetary institutes which used to be done for the customer only possible by customer’s physical presence in the physical bank.Methodology: The main purpose of this project is to present a strategic control system to implementation digital banking in Iranian banking system. This research is considered as a Descriptive correlation with fieldwork strategy which is to assess this very goal. The statistical population of this study includes all experts and thinkers in the field of banking who, for example, 202 out of 300 experts answered the researcher-made questionnaire of twenty research questions as a data collection tool after ensuring its validity and reliability. Data analysis is done by Structural equation model with the partial least squares approach through Smart PLS 3.2 and SPSS 26 software. The research findings while confirming the necessity of a strategic control system and presenting it for evaluation and monitoring in the banking system to achieve the goal of establishing digital banking in the Iranian banking system indicate that appropriate strategic control should be selected according to the type of strategic formulation and implementation.Findings:The activities and programs include : depositing , harvesting and transfer of money, account management, loan management, billing ,accounting services. Other expectations from digital banking can be directed to management of all assets, calls for credit cards online or via mobile phone , credit card, virtual prepayment for safe payments, The loan demand is totally online or via mobile phone, text-based payments , payment via cell phone in stores and taxis , products and personal services , the existence of a remote financial consultant. In times of crisis, the spread of Corona disease in the world many businesses, including banks , about the importance of telecommuting and providing remote services to customers and expanding telecommunications to reduce face-to-face communication and prevent the transmission of diseases and the need to encourage customers ,employees and chains They are aware of the need to turn to digital channels and new ways of working and providing services, and the need for this has created an opportunity for banks to take rapid steps towards digital transformation and the implementation of digital banking. While the establishment of digital banking and the conversion of banks into digital banks, given the benefits of reducing the cost of activities, which leads to a reduction in the cost of services and products in all sectors of the economy and increasing the productivity of the whole economy. The emergence of economic cycles and the need to increase productivity and profitability, have led banks to better manage their assets and with the introduction of new technologies in addition to the transformation of banking models, new businesses in the field of financial technology or fintechs that form part of the market share of services will target finance and banking. To implementation the digital banking in Iranian banking system, it is necessary to have a strategic control system. That is because problems in the performance of strategies are due to weaknesses of controlling systems. Strategic control is performed to control the setting up and implementing the strategy which within contains the change management and that gives a clear understanding of organization’s internal matters and awareness of the changes of the surroundings leading the managers to make better decisions. In order to correctly and effectively guide such huge transformation with deep effects over the society, it is necessary to have some strategic model. The model ensures the effectiveness and quality of the digital transformation strategy, its long-term effectiveness, the follow up of the banking system to run the road map of digital transformation according to higher ranking documents, step by step implementation of the road map and achievement of predetermined targets.Discussion and Conclusion:Strategic control helps managers to take into account environmental changes such as changes in competition, changes in technological innovations, changes in customer preferences, changes in investment trends, etc., which can affect the development of the country's banking system. Digital Banking Given the environmental opportunities affecting the field of banking (such as opportunities in technological developments, social, political, legislative, economic and international trends) It can improve the weakness of the country's banking (such as weakness in processes, technology, knowledge, human resources and financial products). Therefore , the kind of strategy of digital banking is conservative , and banks must refrain from placing in conditions that have high risk . The types of goals of »future banking and digital transformation« are conservative , that is , the document aims to address the weaknesses of the banking system using the opportunities available in it .As a result after offering strategic control system to implementation digital banking in Iranian banking system, the connection among strategic control type (formulation and implementation) with strategic setup type (style) and environmental changes as the research’s main hypothesis and six other subsidiary hypothesis of the research through the implement of statistic examinations and a strong GOF formula was confirmed. |
| first_indexed | 2024-04-10T07:00:46Z |
| format | Article |
| id | doaj.art-b106b377b00443d7bf47d42b321de205 |
| institution | Directory Open Access Journal |
| issn | 2228-6853 2676-6744 |
| language | fas |
| last_indexed | 2024-04-10T07:00:46Z |
| publishDate | 2022-06-01 |
| publisher | Iran Strategic Management Society |
| record_format | Article |
| series | مطالعات مدیریت راهبردی |
| spelling | doaj.art-b106b377b00443d7bf47d42b321de2052023-02-27T20:07:05ZfasIran Strategic Management Societyمطالعات مدیریت راهبردی2228-68532676-67442022-06-01135011910.22034/smsj.2022.133676133676Strategic Control model for implementing Digital Banking in Iranian Banking Systemfateme anisi0Seyyed Kazem Chavoshi1Faculty of Management Kharazmi University, Tehran, IranAssistant Professor , Faculty Member. Department of Business management, Kharazmi University, Tehran, IranAim and Introduction: Banking industry today is facing a great increase in competition as well as other industries and it moving toward newer banking methods to get along with technological improvements in order to create competitive advantages, is an undeniable necessity. Researches show that the banking method is changing from traditional banking to digital banking. Digital banking means to digitalize all steps and processes done by banks and monetary institutes which used to be done for the customer only possible by customer’s physical presence in the physical bank.Methodology: The main purpose of this project is to present a strategic control system to implementation digital banking in Iranian banking system. This research is considered as a Descriptive correlation with fieldwork strategy which is to assess this very goal. The statistical population of this study includes all experts and thinkers in the field of banking who, for example, 202 out of 300 experts answered the researcher-made questionnaire of twenty research questions as a data collection tool after ensuring its validity and reliability. Data analysis is done by Structural equation model with the partial least squares approach through Smart PLS 3.2 and SPSS 26 software. The research findings while confirming the necessity of a strategic control system and presenting it for evaluation and monitoring in the banking system to achieve the goal of establishing digital banking in the Iranian banking system indicate that appropriate strategic control should be selected according to the type of strategic formulation and implementation.Findings:The activities and programs include : depositing , harvesting and transfer of money, account management, loan management, billing ,accounting services. Other expectations from digital banking can be directed to management of all assets, calls for credit cards online or via mobile phone , credit card, virtual prepayment for safe payments, The loan demand is totally online or via mobile phone, text-based payments , payment via cell phone in stores and taxis , products and personal services , the existence of a remote financial consultant. In times of crisis, the spread of Corona disease in the world many businesses, including banks , about the importance of telecommuting and providing remote services to customers and expanding telecommunications to reduce face-to-face communication and prevent the transmission of diseases and the need to encourage customers ,employees and chains They are aware of the need to turn to digital channels and new ways of working and providing services, and the need for this has created an opportunity for banks to take rapid steps towards digital transformation and the implementation of digital banking. While the establishment of digital banking and the conversion of banks into digital banks, given the benefits of reducing the cost of activities, which leads to a reduction in the cost of services and products in all sectors of the economy and increasing the productivity of the whole economy. The emergence of economic cycles and the need to increase productivity and profitability, have led banks to better manage their assets and with the introduction of new technologies in addition to the transformation of banking models, new businesses in the field of financial technology or fintechs that form part of the market share of services will target finance and banking. To implementation the digital banking in Iranian banking system, it is necessary to have a strategic control system. That is because problems in the performance of strategies are due to weaknesses of controlling systems. Strategic control is performed to control the setting up and implementing the strategy which within contains the change management and that gives a clear understanding of organization’s internal matters and awareness of the changes of the surroundings leading the managers to make better decisions. In order to correctly and effectively guide such huge transformation with deep effects over the society, it is necessary to have some strategic model. The model ensures the effectiveness and quality of the digital transformation strategy, its long-term effectiveness, the follow up of the banking system to run the road map of digital transformation according to higher ranking documents, step by step implementation of the road map and achievement of predetermined targets.Discussion and Conclusion:Strategic control helps managers to take into account environmental changes such as changes in competition, changes in technological innovations, changes in customer preferences, changes in investment trends, etc., which can affect the development of the country's banking system. Digital Banking Given the environmental opportunities affecting the field of banking (such as opportunities in technological developments, social, political, legislative, economic and international trends) It can improve the weakness of the country's banking (such as weakness in processes, technology, knowledge, human resources and financial products). Therefore , the kind of strategy of digital banking is conservative , and banks must refrain from placing in conditions that have high risk . The types of goals of »future banking and digital transformation« are conservative , that is , the document aims to address the weaknesses of the banking system using the opportunities available in it .As a result after offering strategic control system to implementation digital banking in Iranian banking system, the connection among strategic control type (formulation and implementation) with strategic setup type (style) and environmental changes as the research’s main hypothesis and six other subsidiary hypothesis of the research through the implement of statistic examinations and a strong GOF formula was confirmed.http://www.smsjournal.ir/article_133676_b26c24725523fc331d3fa465a1f7a6d1.pdfdigital bankingstrategic controldigital transformationdigital banking road map |
| spellingShingle | fateme anisi Seyyed Kazem Chavoshi Strategic Control model for implementing Digital Banking in Iranian Banking System مطالعات مدیریت راهبردی digital banking strategic control digital transformation digital banking road map |
| title | Strategic Control model for implementing Digital Banking in Iranian Banking System |
| title_full | Strategic Control model for implementing Digital Banking in Iranian Banking System |
| title_fullStr | Strategic Control model for implementing Digital Banking in Iranian Banking System |
| title_full_unstemmed | Strategic Control model for implementing Digital Banking in Iranian Banking System |
| title_short | Strategic Control model for implementing Digital Banking in Iranian Banking System |
| title_sort | strategic control model for implementing digital banking in iranian banking system |
| topic | digital banking strategic control digital transformation digital banking road map |
| url | http://www.smsjournal.ir/article_133676_b26c24725523fc331d3fa465a1f7a6d1.pdf |
| work_keys_str_mv | AT fatemeanisi strategiccontrolmodelforimplementingdigitalbankinginiranianbankingsystem AT seyyedkazemchavoshi strategiccontrolmodelforimplementingdigitalbankinginiranianbankingsystem |