POLICY RECOMMENDATIONS FOR ENHANCING THE COMPETITIVENESS AND BUSINESS PERFORMANCE OF DIGITAL BANKS IN VIETNAM
DOI:
https://doi.org/10.2478/eoik-2025-0091Ključne reči:
Digital transformation, digital bank, financial technology, business performanceApstrakt
The digital transformation of the banking sector is reshaping competi-
tive dynamics, requiring institutions to align technological innovation
with service quality, human capital, and customer experience. Despite
growing global attention, limited empirical research explores the spe-
cific determinants of competitiveness and business performance in
digital banks within emerging markets. Thus, this study develops and
empirically validates a structural equation model to examine the key
factors influencing digital bank competitiveness and performance in
Vietnam. A mixed-methods approach was adopted, combining qual-
itative insights from 30 expert interviews with a large-scale survey
of 935 digital banking professionals across five major cities. Fourteen
hypotheses and one moderating effect were tested using Partial Least
Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 3.0.
The findings reveal that customer satisfaction is the strongest predictor
of both competitiveness and business performance, with service qual-
ity, digital human resources, and financial technology also exerting
significant direct and indirect effects. Digital transformation not only
enhances performance directly but also moderates the relationship be-
tween customer satisfaction and performance. The validated model ac-
counts for 33.9% of the variance in business performance and 32.7% in
competitiveness. This study contributes a novel integrative framework
that highlights the interplay between customer-centricity and digital
capabilities in driving strategic outcomes. Policy recommendations
include enhancing customer satisfaction mechanisms, investing in
digital workforce development, and promoting strategic digital trans-
formation initiatives. These insights provide actionable guidance for
policymakers and banking leaders seeking to strengthen the resilience
and performance of digital banks in emerging economies.
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