Explaining IT Governance for Implementing Branchless Banking Through Digital Transformation

Document Type : Original Article

Authors

1 Department of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 Faculty of Governance, University of Tehran, Tehran, Iran

3 PhD in Industrial Management, Department of Industrial Management, Se.C., Islamic Azad University, Semnan, Iran

10.22091/jdaid.2026.14530.1018

Abstract

This research addresses the critical gap in Information Technology Governance (ITG) models specifically tailored for the successful implementation of Branchless Banking (BB). While ITG has been extensively studied, its application within the unique context of BB remains underexplored. This study proposes and validates an operational ITG model designed explicitly for BB implementation.
Drawing upon a comprehensive literature review and insights from in-depth interviews with information security experts, this study identifies the key effects of ITG implementation on BB success. An operational model is developed and empirically validated using Partial Least Squares The structural modeling results demonstrate that ITG exerts a significantly more favorable and robust effect on BB success when mediated through Digital Transformation (DT). Furthermore, the core ITG framework components—Strategic Planning (SP), Risk Management (RM), and Quality Management (QM)—are found to have significant positive influences on the ITG framework itself. Crucially, ITG also exhibits a direct, positive, and significant impact on the successful implementation of BB. These findings underscore the necessity for banks to align their DT strategies with a robust ITG framework to effectively eliminate physical branches and digitize banking processes.

Keywords

Main Subjects

References

    Adrian, F. X., & Wang, G. (2023). Measure the level capability it governance in effectiveness internal control for cybersecurity using the COBIT 2019 in organization: Banking company. Journal of Theoretical and Applied Information Technology, 101(5), https://www.jatit.org/volumes/Vol101No5/9Vol101No5.pdf
Aduda, J., & Kingoo, N. (2012). The relationship between electronic banking and financial performance among commercial banks in Kenya. Journal of Finance and Investment Analysis, 1(3), 99-118. https://www.scienpress.com/Upload/JFIA/Vol%201_3_6.pdf
Afifah, N., Mulyana, R., & Abdurrahman, L. (2022). Survey of IT governance influence on digital transformation and bank organization performance. Sistemasi: Jurnal Sistem Informasi, 11(3), 749-760. https://doi.org/10.32520/stmsi. v11i3.2179
Ahmadi, R., Sahraei S., Saheb, T. (2023). Ranking the effective dimensions of knowledge management on the acceptance of digital banking in the banking industry (Case study: Parsian Bank). 12(4), 11-27.  https://doi.org/20.1001.1.22286977.1401.12.4.2.8
Ahmed, F., & Iqbal, A. (2025). The role of artificial intelligence in enhancing credit risk management: A systematic literature review of international banking systems. Pakistan Journal of Humanities and Social Sciences, 13(1), 478-492. https://doi.org/10.52131/pjhss.2025.v13i1.2727
Albderi, A. J. T., Hasan, M. F., & Flayyih, H. H. (2023). Measuring the level of banking performance according to the requirements of comprehensive quality management: An application study. Ishtar Journal of Economics and Business Studies, 4(1), 1-18. https://doi.org/10.55270/ijebs.v4i1.15
Ali, N. M. S., & Khalid, N. A. (2025). Fiscal sustainability of the palestinian local government units (lgus): challenges and opportunities. Lex Localis, 23(S4), 2605-2634. https://doi.org/10.52152/nn00bh97
Alnsour, I. R., Al-Nsour, I., Malkawi, E. M., & Allahham, M. I. (2025). The role of internet of things in fintech adoption within banking sector: the moderating role of digital transformation capability. Lex Localis- Journal of Local Self-Government, 23, 2486-2510. https://www.researchgate.net/profile/Iyad-Al-Nsour/publication/395413685_THE_ROLE_OF_INTERNET_OF_THINGS_IN_FINTECH_ADOPTION_WITHIN_BANKING_SECTORTHE_MODERATING_ROLE_OF_DIGITAL_TRANSFORMATION_CAPABILITY/links/68c30cf57e1397188302e76e/THE-ROLE-OF-INTERNET-OF-THINGS-IN-FINTECH-ADOPTION-WITHIN-BANKING-SECTORTHE-MODERATING-ROLE-OF-DIGITAL-TRANSFORMATION-CAPABILITY.pdf
Al-Gasaymeh, A., Qasaimeh, G. M., Alrawashdeh, N., Alsmadi, A. A., & Alzoubi, H. M. (2023). The impact of cobit 5 on the effectiveness of applying governance tools in jordanian commercial banks. Calitatea, 24(194), 377-384. https://doi.org/10.47750/QAS/24.194.42
Alzoubi, H. M., Ghazal, T. M., Hasan, M. K., Alketbi, A., Kamran, R., Al-Dmour, N. A., & Islam, S. (2022, May). Cyber security threats on digital banking. In 2022 1st International Conference on AI in Cybersecurity (ICAIC) (pp. 1-4). https://doi.org/10.1109/ICAIC53980.2022.9896966
Anisi, F., & Chavoshi, S. K. (2022). Strategic control model for implementing digital banking in Iranian banking system. Journal of Strategic Management Studies, 13(50), 1-19. https://doi.org/10.22034/smsj.2022.133676
Aprilinda, Y., Puspa, A. K., & Affandy, F. N. (2019, November). The use of ISO and COBIT for IT governance audit. Journal of Physics: Conference Series, 1381(1), 012028. IOP Publishing. https://doi.org/10.1088/1742-6596/1381/1/012028
Arghand, A. A., Alborzi, M., & Ghatari, A. R. (2022). A methodology for IT governance by viable system modeling (VSM): An action research in designing a data center. Systemic Practice and Action Research, 35(2), 131-152. https://doi.org/10.1007/s11213-021-09559-8
Ariyani, L., & Wicaksono, A. (2024). The dynamics of economy in the regional msmes' digital ecosystem. In the digitalization of indonesian small and medium enterprises: human capital, inclusivity and platform capitalism (pp. 91-116). Singapore: Springer Nature Singapore. https://doi.org/10.1007/978-981-97-0029-5_6
Borja, S., Moon, Y., Yoon, H., & Hwang, J. (2022, August). IT governance mechanisms, it governance domains, and their influence on it governance effectiveness: Empirical analysis in Colombia. In 2022 Portland International Conference on Management of Engineering and Technology (PICMET) (pp. 1-10). IEEE . https://doi.org/10.23919/PICMET53225.2022.9882803
Carbó‐Valverde, S., Cuadros‐Solas, P. J., Rodríguez‐Fernández, F., & EY. (2020). The effect of banks' IT investments on the digitalization of their customers. Global Policy, 11, 9-17 https://doi.org/10.1111/1758-5899.12749
de Miguel, P. M., Martínez, A. G., & Montes-Botella, J. L. (2022). Review of the measurement of dynamic capabilities: A proposal of indicators for the automotive industry. ESIC Market, 53(1), e283-e283. https://doi.org/https://doi.org/10.7200/esicm.53.283
Debreceny, R. S. (2013). Research on IT governance, risk, and value: Challenges and opportunities. Journal of Information Systems, 27(1), 129-135. https://doi.org/10.2308/isys-10339
Derakhshan, S., Nabiollahi, A., Khani, N., & Khayami, S. R. (2022). Presenting a capability planning model based on Cobit organizational architecture management process (Case study: Fava management of Isfahan University of Medical Sciences). Health Information Management, 19(2), 60-70. https://doi.org/10.48305/him.2022.39198.1026
Fernandes, A. J., Hartono, H., & Aziza, C. (2020). Assessment IT governance of human resources information system using COBIT 5. International Journal of Open Information Technologies, 8(4), 59-63. https://cyberleninka.ru/article/n/assessment-it-governance-of-human-resources-information-system-using-cobit-5
Fianty, M. I., & Brian, M. (2023). Leveraging COBIT 2019 framework to implement it governance in business process outsourcing company. Journal of Information Systems and Informatics, 5(2), 568-579. DOI:10.51519/journalisi.v5i2.492
Fitriyanti, F., M. I., & Kusumaningdiah R. S. (2023). Detection implementation of risk management for commercial digital banking. Migration, 20(S11), 727-734. https://doi.org/10.59670/ml.v20iS11.5760
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of
Marketing Research, 18(1), 39-50. https://journals.sagepub.com/doi/abs/10.1177/002224378101800104
Gangadwala, D. R., & Goyani, M. R. (2019). A study of issue of e-banking from the customers perception. Emerging Trends in Global Management and Information Technology, 73. https://books.google.com/books?hl=en&lr=&id=Uao5EAAAQBAJ&oi=fnd&pg=PA73&dq=Gangadwala,+D.+R.,+%26+Goyani,+M.+R.+(2019).+A+study+of+issue+of+e-banking+from+the+customers+perception.+Emerging+Trends+in+Global+Management+and+Information+Technology,+73.&ots=7mdb_D3qSY&sig=xf11Q6056_KEJIWkiW6-nmN5MFY#v=onepage&q&f=false
Gartner Inc. (2017). Hype cycle for emerging technologies 2017. https://www.gartner.com/document/3768572?ref=ddrec (visited on 11/25/2017).
Gasser, U., Gassmann, O., Hens, T., Leifer, L., Puschmann, T., & Zhao, L. (2017). Digital banking 2025. Research platform Alexandria. https://www.alexandria.unisg.ch/entities/publication/184e0b83-78cf-4338-8567-f4bcf441b139
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152. https://doi.org/10.2753/MTP1069-6679190202
Hantsch, C., Westner, M., & Matschi, M. (2025). IT/OT-Konvergenz: status-quo und umsetzungsempfehlungen. HMD Praxis der Wirtschaftsinformatik, 62(2), 402-418.  https://doi.org/10.1365/s40702-024-01111-1
Hamdan, M., Gharaibeh, O., Al-Quran, A., & Nusairat, N. (2021). The impact of information technology investment on the financial performance of the banks. Acad Strateg Manag J, 20(6), 1-12. https://www.researchgate.net/profile/Omar-Gharaibeh-3/publication/360756941_THE_IMPACT_OF_INFORMATION_TECHNOLOGY_INVESTMENT_ON_THE_FINANCIAL_PERFORMANCE_OF_THE_BANKS/links/628897426e41e5002d36c77c/THE-IMPACT-OF-INFORMATION-TECHNOLOGY-INVESTMENT-ON-THE-FINANCIAL-PERFORMANCE-OF-THE-BANKS.pdf
Haralayya, B. (2021). How Digital Banking has brought innovative products and services to India. Journal of Advanced Research in Quality Control and Management, 6(1), 16-18. https://www.researchgate.net/profile/Dr-Haralayya/publication/352681606_HOW_DIGITAL_BANKING_HAS_BROUGHT_INNOVATIVE_PRODUCTS_AND_SERVICES_TO_INDIA/links/60d31e92a6fdcce58bab3f24/HOW-DIGITAL-BANKING-HAS-BROUGHT-INNOVATIVE-PRODUCTS-AND-SERVICES-TO-INDIA.pdf
Henriques, D., Pereira, R., Almeida, R., & Da Silva, M. M. (2020). IT governance enablers. Форсайт, 14(1(eng)), 48-59. https://cyberleninka.ru/article/n/it-governance-enablers
Hassan, S. W. U., Kiran, S., Gul, S., Khatatbeh, I. N., & Zainab, B. (2025). The perception of accountants/auditors on the role of corporate governance and information technology in fraud detection and prevention. Journal of Financial Reporting and Accounting, 23(1), 5-29. https://doi.org/10.1108/JFRA-05-2023-0235
Indriasari, E., Prabowo, H., Gaol, F. L., & Purwandari, B. (2022). Intelligent digital banking technology and architecture: A systematic literature review. International Journal of Interactive Mobile Technologies, 16(19). https://doi.org/10.3991/IJIM.V16I19.30993
Juiz, C., & Gomez, B. (2021). Delving into the IT governance-management communication Interface: A scoping review. International Journal of Digital Strategy, Governance, and Business Transformation (IJDSGBT), 11(1), 1-37. https://doi.org/10.4018/IJDSGBT.291542
Khan, I., Amin, M. Y., & Akbar, S. (2025). Fintech adoption and sustainable performance in banking institutions: the role of digital transformation. Journal of Media Horizons, 6(1), 11-20. https://www.researchgate.net/profile/Imran-Khan288/publication/387792861_Fintech_Adoption_and_Sustainable_Performance_in_Banking_Institutions_The_Role_of_Digital_Transformation/links/677d6e987934b95644a7da00/Fintech-Adoption-and-Sustainable-Performance-in-Banking-Institutions-The-Role-of-Digital-Transformation.pdf
Khemiri, M., & Jallouli, R. (2022). Technology-enabled personalization for mobile banking services: Literature review and theoretical framework. Journal of Telecommunications and the Digital Economy, 10(2), 173-194. https://search.informit.org/doi/abs/10.3316/informit.587268320552265
Khashei Varnamkhasti, V., Ebrahimi, M., Khalil Nezhad, S., & Motahari Nejad, F. (2024). Generative mechanisms of digital banking ecosystem evolution. Business Intelligence Management Studies, 12(48), https://doi.org/10.22054/ims.2024.76327.2394
Kitsios, F., Giatsidis, I., & Kamariotou, M. (2021). Digital transformation and strategy in the banking sector: Evaluating the acceptance rate of e-services. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 204. https://doi.org/10.3390/joitmc7030204
kumar, M. (2023). An overview of cyber security in digital banking Sector. East Asian Journal of Multidisciplinary Research, 2(1), 43-52.‏ https://doi.org/https://doi.org/10.55927/eajmr.v2i1.1671
Kurniawansyah, K., Marthiawati, N., & Rohayani, H. (2023). Analisis kinerja tata kelola teknologi informasi pada bank menggunakan framework Cobit 2019. Bulletin of Computer Science Research, 4(1), 112-120. https://doi.org/https://doi.org/10.47065/bulletincsr.v4i1.320
Levstek, A., Pucihar, A., & Hovelja, T. (2022). Towards an adaptive strategic IT governance model for SMEs. Journal of Theoretical and Applied Electronic Commerce Research, 17(1), 230-252. https://doi.org/10.3390/jtaer17010012
Marlius, D. (2022). Use of digital banking in improving services at banks. Jurnal Keuangan Dan Perbankan (KEBAN), 1(2), 59-65. http://download.garuda.kemdikbud.go.id/article.php?article=2811275&val=25022&title=Use%20of%20Digital%20Banking%20in%20Improving%20Services%20at%20Banks
Matović, I. M., & Milosavljević, P. (2020). Digital transformation of serbian banking sector: Case study of bank's strategic planning for a creation of digital roadmap. ICAICTSEE–2020, 224. https://ibn.idsi.md/sites/default/files/imag_file/ICAICTSEE-2020.pdf#page=224
Melnychenko, S., Volosovych, S., & Baraniuk, Y. (2020). Dominant ideas of financial technologies in digital banking. Baltic Journal of Economic Studies, 6(1), 92-99. https://doi.org/10.30525/2256-0742/2020-6-1-92-99
Mikalef, P., Pateli, A., & van de Wetering, R. (2021). IT architecture flexibility and IT governance decentralisation as drivers of IT-enabled dynamic capabilities and competitive performance: The moderating effect of the external environment. European Journal of Information Systems, 30(5), 512-40. https://doi.org/10.1080/0960085X.2020.1808541
Nadkarni, S., & Prügl, R. (2021). Digital transformation: A review, synthesis and opportunities for future research. Management Review Quarterly, 71, 233-341. https://doi.org/10.1007/s11301-020-00185-7
Nguyen, T. T. H., & Phan, H. D. (2025). The role of governance and digital transformation in enhancing operational sustainability of non-banking financial institutions. Pakistan Journal of Life & Social Sciences, 23(1). https://doi.org/10.57239/PJLSS-2025-23.1.0087
OECD. (2021). ICT investment (indicator). https://doi.org/10.1787/b23ec1da-en Gartner Inc. (2017a). Hype Cycle for Emerging Technologies 2017. https://www.gartner.com/document/3768572?ref=ddrec
Ogunrinde, A. (2022). The effectiveness of soft skills in generating dynamic capabilities in ICT companies. ESIC Market, 53(3), e286-e286. https://doi.org/10.7200/esicm.53.286
Oyarhossein, S., Toloie Eshlaghy, A., Radfar, R., & Pour Ebrahimi, A. (2022). Digital transformation in corporate banking: Theoretical approach and behavioral analysis. Journal of Investment Knowledge, 11(44), 603-630. http://www.jik-ifea.ir/article_20674.html?lang=en
Pilorget, L. (2025). IT-Governance. In Managing IT in einer digitalen Welt: Zusammenhänge der IT verstehen und die Kriterien für eine erfolgreiche Transformation beherrschen (pp. 289-313). Wiesbaden: Springer Fachmedien Wiesbaden. https://doi.org/10.1007/978-3-658-46012-9_9
Porfírio, J. A., Felício, J. A., & Carrilho, T. (2024). Factors affecting digital transformation in banking. Journal of Business Research, 171, 114393. https://doi.org/10.1016/j.jbusres.2023.114393
Ramadhana, R., Izaac, B. V., Tangka, G. W., & Mambu, J. Y. (2023). Information technology governance analysis using the COBIT 2019 framework at PT. Daya Adicipta Wisesa. Jurnal Informasi dan Teknologi, 141-146. https://doi.org/10.60083/jidt.v5i3.414
Schaefer, J., Baierle, I., Nara, E., Benitez, G., & Haetinger, C. (2020). Corporate governance and information technology: A hybrid vision based on COBIT and ITIL for small companies. Proceedings of the XL Encontro Nacional de Engenharia de Producao, Foz do Iguaçu (pp. 20-23). Brazil. https://www.researchgate.net/profile/GuilhermeBenitez/publication/344885938_Corporate_Governance_and_Information_Technology_A_Hybrid_Vision_Based_on_COBIT_and_ITIL_for_Small_Companies/links/5f96bea6458515b7cf9f0194/Corporate-Governance-and-Information-Technology-A-Hybrid-Vision-Based-on-COBIT-and-ITIL-for-Small-Companies.pdf
Schrofelbauer, M., & Sellinger, M. (2025). Automatisierung in der IT-Governance. In Insurance & Innovation 2025 (pp. 5-13). VVW, Karlsruhe. https://doi.org/10.33283/978-3-86298-893-8_2
Shahabi, V., Azar, A., Faezy Razi, F., & Fallah Shams, M. (2021). Modeling the impact of the industry 4.0 on the banking supply chain using fuzzy dimatel technique. Journal of International Business Administration, 4(1), 67-89. https://doi.org/10.22034/jiba.2021.43213.1589
Shahabi, V., Azar, A., Faezy Razi, F., & Fallah Shams, M. F. (2022). Analysis of factors affecting the development of the banking service supply chain in the Industry 4.0. Management Research in Iran, 26(2), 95-114. https://doi.org/20.1001.1.2322200.1401.26.2.5.4
Shahabi, V., Radfar, R., Wanke, P., Shahabi, A., & Tan, Y. (2024). Agent-based modeling of banking service supply chain in Industry 4.0: A case study of Resalat Qard al Hasana Bank. International Journal of Innovation in Management, Economics and Social Sciences, 4(1), 64-85. https://doi.org/https://doi.org/10.59615/ijimes.4.1.64
Shaikh, A. A., & Karjaluoto, H. (2016, January). Mobile banking services continuous usage--case study of Finland. In 2016 49th Hawaii International Conference on System Sciences (HICSS) (pp. 1497-1506). IEEE. https://doi.org/10.1109/HICSS.2016.189
Sharma, B., & Dubey, A. (2022). Digital banking: A need of time. International Journal of Advance and Applied Research (IJAAR), 9(3), 504-513. https://www.researchgate.net/publication/360809100_DIGITAL_BANKING_A_NEED_OF_TIME
Silva, H. C. C. D., Silveira, D. S. D., Dornelas, J. S., & Ferreira, H. S. (2019). Information technology governance in small and medium enterprises-a systematic mapping. JISTEM-Journal of Information Systems and Technology Management, 17, e202017001. https://doi.org/10.4301/S1807-1775202017001
Sinaga, P., & Suroso, J. (2023). The influence of electronic service quality on digital bank application. Journal of Theoretical and Applied Information Technology, 31(10). https://www.semanticscholar.org/paper/THE-INFLUENCE-OF-ELECTRONIC-SERVICE-QUALITY-ON-BANK-Sinaga-Suroso/5306332418049a85fca1ad457cedbfa99ff8b25f
Soltani, M., & Tahmasebi Aghbelaghi, D. (2020). Explaining the role of tejarat bank's strategic alliance with fintechs in efficiency mediated by technological developments and digital banking. Journal of Business Management, 12(3), 800-832. https://doi.org/10.22059/jibm.2020.296288.3753
Taheri, M., & Ziaei, S. (2021). Providing a model to motivate information technology maturity in information science and knowledge in Gartner style in organizations and libraries (Case study: Documentation Organization). Digital and Smart Libraries Researches, 8(30), 79-92. https://doi.org/10.30473/mrs.2022.62680.1500
Valsamidis, S., Tsourgiannis, L., Pappas, D., & Mosxou, E. (2020). Digital banking in the new era: Exploring customers' attitudes. Business Performance and Financial Institutions in Europe: Business Models and Value Creation Across European Industries, 91-104. https://doi.org/10.1007/978-3-030-57517-5_6Top of Form
Veena, V. B. (2022). Effect of digital banking acceptance on digital banking usage. Webology, 19(1), 1344-1357. https://doi.org/10.14704/WEB/V19I1/WEB19090
Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Managing Digital Transformation, 13-66. https://doi.org/10.1016/j.jsis.2019.01.003
Warner, K. S., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326-349. https://doi.org/10.1016/j.lrp.2018.12.001
Warkentin, M., & Johnston, A. C. (2016). IT governance and organizational design for security management. In Information security (pp. 46-68). Routledge. https://www.taylorfrancis.com/chapters/edit/10.4324/9781315288697-5/governance-organizational-design-security-management-merrill-warkentin-allen-johnston
Wadesango, N., & Magaya, B. (2020). The impact of digital banking services on performance of commercial banks. Journal of Management Information and Decision Sciences, 23, 343-353. https://www.abacademies.org/articles/THE-IMPACT-OF-DIGITAL-BANKING-SERVICES-ON-PERFORMANCE-OF-COMMERCIAL-BANKS-1532-5806-23-S1-204.pdf
Weber, K., Otto, B., & Lis, D. (2025). Data governance. In Daten-und Informationsqualität: Die Grundlage der Digitalisierung (pp. 271-292). Wiesbaden: Springer Fachmedien Wiesbaden. https://link.springer.com/chapter/10.1007/978-3-658-47317-4_16
Wewege, L. (2017). The digital banking revolution. Lulu. https://books.google.com/books?hl=en&lr=&id=rXcnDwAAQBAJ&oi=fnd&pg=PA4&dq=Wewege,+L.+(2017).+The+digital+banking+revolution.+Lulu.+com.&ots=AKNynHOxRm&sig=bKMX8dDKYqAGie0u2JMEtyExtpA#v=onepage&q=Wewege%2C%20L.%20(2017).%20The%20digital%20banking%20revolution.%20Lulu.%20com.&f=false
Wilkin, C. L., & Chenhall, R. H. (2020). Information technology governance: Reflections on the past and future directions. Journal of Information Systems, 34(2), 257–292. https://doi.org/10.2308/isys-52632
Journal of Data Analytics and Intelligent Decision-making
Volume 1, Issue 4
January 2026
Pages 1-31

Files

Share

How to cite

Statistics