Assessing the Digital Transformation in Two Banks: Case Study in Hungary

DOI 10.7160/aol.2022.140210
No 2/2022, June
pp. 121-134

Tran, L. Q. T., Phan, D. T., Herdon, M. and Kovacs, L. (2022) "Assessing the Digital Transformation in Two Banks: Case Study in Hungary", AGRIS on-line Papers in Economics and Informatics, Vol. 14, No. 2, pp. 121-134. ISSN 1804-1930. DOI 10.7160/aol.2022.140210.


The influence of Industry 4.0 and the trend of economic globalization has led to growing competition among enterprises in all business sectors, then compelled them to seek new ways to create competitive advantages and sustainable development. Presently, digital transformation plays a critical role across many countries and in all sectors including the agriculture and the rural development. New players have been increasing in the banking sector in which incumbent banks are competing with other traditional banks, fintech, and big tech. Nevertheless, not all banks are successful in digital transformation. By analyzing the practices of two banks in Hungary, this study aims to highlight the digital transformation process which happens at the leading banks and compare and contrast in all dimensions at these transformations. The study results confirm that digitalization in incumbent banks is still at a low and medium level. Moreover, the study outcomes suggest that strategic planning and human resource play key roles in implementing Digital transformation. In addition, digital transformation at traditional banks is not only related to internal; external stakeholders can be drivers or barriers to this process. Government policy and support are important factors to improve the digitalization process in Hungary related to financial services for the agriculture. Based on the results obtained, the authors aim to supplement the lack of research on digital transformation in Hungary.


Digital transformation, bank, Hungary, case study.


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