Digital transformation in commercial banks: Unraveling the flow of Industry 4.0

This study investigates the strategies employed by commercial banks during their digital transformation, particularly regarding the integration of Industry 4.0 technologies. A systematic literature review of 287 articles was conducted to identify strategies at micro, meso , and macro levels. At the micro level, three key strategies emerged: value co-creation, security, and inclusion, aiming to enhance customer experience, secure data, and improve digital accessibility. At the meso level, banks adopt agile organisational structures, automation, and expand digital platforms to optimise internal processes and foster external collaborations. At the macro level, strategies include establishing fully digital banks, incorporating digital features into traditional operations, or collaborating with other stakeholders to innovate business models. A conceptual framework is presented to illustrate the dynamic interaction between these levels, emphasising the importance of a holistic approach for successful digital transformation. The research connects its findings to theories of general-purpose technology and dynamic capabilities. Implications highlight the need for overcoming challenges such as legacy systems, regulatory complexities, and internal resistance. These findings offer valuable insights for banks implementing Industry 4.0 technologies, with a focus on strategic alignment, organisational readiness, and technological innovation. • Conceptual Framework for Digital Transformation (DT): The study introduces a conceptual framework illustrating the multilevel structure of DT in commercial banks, focusing on the integration and interdependence of three levels: macro (external banking networks), meso (technological development), and micro (customer demands). This framework helps guide strategic decisions in the DT process. • Impact of I4.0 Technologies in banks business models: The integration of Industry 4.0 technologies, such as AI, blockchain, and automation, significantly alters banks' technological infrastructure and operations, driving structural changes within the banking industry and fostering new business models. • Macro-Level Strategies: At the macro level, strategies include creating fully digital banks, expanding digital banking within traditional frameworks, and collaborating with FinTechs to enhance service offerings and customer interfaces, ultimately shaping the banking ecosystem. • Micro-Level Strategies: At the micro level, strategies focus on value co-creation with customers, improving security (e.g., blockchain for data protection), and increasing customer inclusion through digital banking experiences. These strategies are driven by customer data analysis and technological innovation. • Interconnected Levels of DT: The study emphasizes that all levels of DT (macro, meso, and micro) are interconnected. Changes at the micro level, such as customer-driven innovations, influence strategies at the meso and macro levels, leading to the creation of value and new business models in the banking sector. • Theoretical approach: The research connects its findings to theories of general purpose technology and dynamic capabilities. Implications highlight the need for overcoming challenges such as legacy systems, regulatory complexities, and internal resistance. These findings offer valuable insights for banks implementing Industry 4.0 technologies, with a focus on strategic alignment, organisational readiness, and technological innovation.