Impact of digital transformation on competitiveness of commercial banks in Vietnam

Abstract

The powerful international integration has forced commercial banks in Vietnam to improve their competitiveness, especially in the context of the strong 04th industrial revolution. The research investigates the impact of digital transformation on the competitiveness of commercial banks in Vietnam. Using the primary data from a survey of 150 employees working in commercial banks in October 2021 by answering the 5-level Likert scale questionnaires & Exploratory Factor Analysis (EFA), the paper implies that digital transformation through digital banking, E-banking as well as the strong penetration of financial technology (fintech) is important factors that positively affect the competitiveness of commercial banks. Furthermore, besides digital transformation, service diversification also has a positive whereas risks have a negative impact on competitiveness. Based on the research results, the authors suggest some recommendations to improve the competitiveness of commercial banks in the coming time.