Impact of Digital Transformation on Long-Term Sustainability of Indian Banking
Published: 2026
Author(s) Name: Rajat Mahajan, Tajinder Jassal, Nitin Gupta |
Author(s) Affiliation: Mittal School of Business, Lovely Professional University, Phagwara, Punjab, India
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Abstract
This research examines the influence of digital transformation on the long-term sustainability of the Indian banking sector, exploring both the opportunities and challenges faced by this paradigm. Through quantitative analysis of financial and operational data from 20 major Indian banks over a 10-year period from 2012 to 2022, the study evaluates how digital initiatives affect financial performance, operational efficiency, customer satisfaction, and environmental sustainability. The findings of the study reveals that banks with advanced digital maturity demonstrate 23% higher profitability, 31% improved cost-to-income ratios, and 45% enhanced customer engagement compared to low-digitalization peers. The research identifies key sustainability challenges including cybersecurity concerns, digital divide issues, and regulatory compliance costs. A proposed Digital Sustainability Framework for Indian Banking (DSFIB) offers strategic guidance for sustainable digital transformation. This study contributes to understanding how financial institutions can leverage technology for sustainable operations while navigating unique challenges in the Indian context.
Keywords: Digital Transformation, Banking Sustainability, Financial Technology, Indian Banking Sector, Digital Banking, Sustainable Finance
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