Technology and Innovation Communication in Banking Business: A Dynamic Panel Data Approach

Abstract

The study analyzes the role of technology and innovation communication (TIC) in banking business activities using dynamic panel data regression analysis (Arellano & Bond, 1991). In addition, do we consider whether some large banks in Vietnam dominate in technology and innovation communication activities? The study found that technology and innovation communication (TIC) activities are different between banking groups, especially the group of large banks. In particular, with the group of small banks, the relationship is not clear, possibly due to the pressure of high management costs, so the level of readiness to adapt to technology is not yet available. In addition, bank-specific variables also have different levels and trends of impact on BS in different banking groups. These findings are significant in suggesting appropriate policies for small banks with limited internal resources to promote technological innovation in the banking sector. In addition, the study also proposes essential policy implications for regulators in designing appropriate strategies for each bank to develop technology to promote competition in the context of digital transformation.