How are the main banks in Malta rising to the challenges of the new digital banks?

Abstract

Contemporary innovation in information and communication technologies is changing the banking sector landscape. This impacts on the consumers’ behaviour and the strategic changes that local banks must both adapt to and adopt. The array of digital products and applications provided by digital banks shapes both the processes and the operations of local banks. This digital era underpins the development of new digital products and a different customer approach that traditional banks must embark upon. The focus of this study is to examine how the Maltese banks are meeting the challenges of digital banking. A specific reference is dedicated to the products and the digital infrastructure offered by Revolut which experienced a considerable market penetration in the past months. The literature review defines the analogies of traditional and digital banking. Additionally, the research outcomes and analysis section discuss the topics which emerged from the semi-structured interviews. The following chapter provides a thematic analysis on the main themes together with a set of recommendations that address such themes. The subjects treated are interlinked and include the cost of going digital and implementing procedures, the digital innovation, and calculated risks together with the product and services reengineering. The recommendations should support the main local banking stakeholders and competent institutions to address strategic changes in digital banking into their day-to-day operations. Furthermore, complimentary recommendations for further research are included in the final chapter.