This paper discusses the evolution of digital transformation in banking beyond the simple application of the latest technologies. It argues that long-term success requires an integrated strategy focused on people, technology and business implementation, balancing enhanced customer experience with operational efficiency and embedding the ‘human touch’ in digital architectures, while remaining inclusive across the customer adoption curve. The paper examines transformation building blocks (people and skills, technology infrastructure and business implementation); looks at typical pitfalls of partial archetype scenarios in contrast with an ideal, integrated approach; and integrates insights from recent industry reports.1,2,3,4,5,6,7 It further details four strategic transformation paths defined by the Massachusetts Institute of Technology Center for Information Systems Research,8,9 with guidance on selection. The discussion is grounded in practical transformation experience, including the strategic application of artificial intelligence (AI). The paper finds that comprehensive digital transformation requires tackling cultural and organisational agility, in addition to needed technological upgrades and successful business implementation. It is essential to select the appropriate strategic pathway and thoughtfully integrate AI technology. Achieving a healthy balance between high-tech capability and high-touch, inclusive engagement continues to be a major challenge. The paper brings real-world insights, condensed into top imperatives for banking professionals to drive their transformation initiatives, and points out the importance of balancing people, technology and implementation, as well as human-centred design, adaptive leadership and AI, for value creation. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Tokic et al. (2026) studied this question.