Abstract
Bank digital transformation boosts the development of information and communication technology (ICT) in the banking and financial systems worldwide. This study investigates the impact of ICT development on the performance of the banking system in a frontier market. For the period from 2009 to 2020, the empirical evidence is based on balanced panel data of 39 banks in Vietnam. The result shows that bank profitability and ICT index have a significant positive nexus. This beneficial impact is particularly evidenced in the bank’s digital transformation. Hence, the beneficial impact on the return on IT infrastructure investment surpasses the original installation expenses. The findings suggest that ICT advances help the banks perform better when transforming from traditional to digital systems.
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Acknowledgements
We want to thank the Board of Editors and the two anonymous referees for the constructive comments and valuable suggestions. Special thanks to Ho Yen Nhi for excellent research assistance. Any remaining errors or shortcomings are the authors’ responsibility. To conduct this research, financial support from the Van Lang University and University of Economics Ho Chi Minh City is acknowledged.
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Le, T.L.V., Pham, D.K. (2022). The ICT Impact on Bank Performance: The Case of Vietnam. In: Gao, XZ., Tiwari, S., Trivedi, M.C., Singh, P.K., Mishra, K.K. (eds) Advances in Computational Intelligence and Communication Technology. Lecture Notes in Networks and Systems, vol 399. Springer, Singapore. https://doi.org/10.1007/978-981-16-9756-2_16
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