Financial Innovation and Digital Banking Transformation: A Systematic Literature Review

Abstract

This study aims to analyze the relationship between financial innovation and digital banking transformation through a Systematic Literature Review (SLR) approach to scientific publications in the last five years. This study identifies the pattern of relationships between financial innovation, technological development, and organizational restructuring in the context of digital banking. The results show that financial innovation plays a key catalyst for digital transformation by improving operational efficiency, expanding financial inclusion, and strengthening the competitiveness of the banking industry. The success of digital transformation depends heavily on the integration of technological innovation, adaptive leadership, an organizational culture that is open to change, and good governance. Strong innovation is proven to accelerate the restructuring of business models, while mature transformation drives the birth of new and sustainable innovations. In addition, collaboration between banks, fintech, and regulators is a crucial factor in building a secure, inclusive, and competitive digital financial ecosystem. The results of this research are expected to enrich the academic literature and become the basis for strategic policies in the development of innovation and digital transformation of banking in the future