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The impacts of digitalization and covid-19 on the business model of banking: a qualitative study on turkish banks

Yıldırım, Ahmet Coşkun
The aim of this thesis is to understand the effect of digitalization and the digitalization-based changes during Covid-19 pandemic on Turkish Banking Sector (TBS). For this purpose, a qualitative study comprised of structured interviews are conducted to seven top managers of diversified banks and a regulatory authority. As a theoretical framework, the digital transformation maturity model is used as a foundation of the first part of the interview to determine the maturity levels of banks. Second part of the interview consists of employing the elements of Business Model Canvas (BMC) and the data generated is analyzed using a pattern-making approach. The results show that only one of the sample banks is classified as optimized which uses digital transformation for creating new business models according to the digital transformation maturity model. Further, due to changing phase of competition, adaptation of regulatory framework for open banking is a must. Together with these, digital money, blockchain, embedded banking and artificial intelligence are major issues that are to determine the future trend of banking with many new technologies to be implemented in this respect. In parallel to these developments, there is also need for collaboration of unions, banks, Fintechs and government authorities for the employment effects of technological developments. These institutions in collaboration can be remarkably effective in bettering the quality of human resources, competence building and creation of new employment opportunities. In other words, an innovation system perspective is necessary both for policy designers, policy implementers and the actors in TBS.