Innovation and Development of Digital Finance: A Review on Digital Transformation in Banking & Financial Sector of Sri Lanka

Main Article Content

H. M. M. Fairooz
C. N. Wickramasinghe

Abstract

During last few decades, Sri Lanka has shifted from agrarian economy to service economy. In service sector dominant role is played by the Banking and Financial Industry (BFI). Owing to this shift, BFI Industry has experienced a constant evolution by transforming entire BFI industry landscape with new era of convergence service delivery. This evolution can be considered as an extended connectivity and increased speed of information processing by introducing new business models and opportunities in BFI.  As one of the developing countries, BFI sector in Sri Lanka is looking for an exceptional level of divergence between technology and finance. However to date, there is not much published studies to explain the nature of digital transformation in BFI industry in Sri Lanka. This study proposed to develop digital transformation framework of BFI Industry in Sri Lanka based on the diffusion of innovation (DOI) theory, technology-organization-environment (TOE) framework and actor-network theory (ANT) to conduct the multi-level analysis of the development of Sri Lanka‘s BFI industry digital transformation. It attempts to create and reveal the process of building and execution of disruptive technology and variety of heterogeneous actors involved in the newly emerging converging industry. This research is a stepping stone in exploring interaction between FinTech and yet unfolding other technology around this context. It also discusses policy implication for Sri Lanka BFI industry, focusing on the expansion of state in fostering the exponential growth of BFI industry within and outside Sri Lanka.

Keywords:
ANT, digital finance, digital transformation, DOI, disruptive technology, exponential growth, FinTech, TOE

Article Details

How to Cite
Fairooz, H. M. M., & Wickramasinghe, C. N. (2019). Innovation and Development of Digital Finance: A Review on Digital Transformation in Banking & Financial Sector of Sri Lanka. Asian Journal of Economics, Finance and Management, 1(2), 69-78. Retrieved from https://globalpresshub.com/index.php/AJEFM/article/view/757
Section
Review Article