Rethinking digital transformation in commercial banking: A longitudinal analysis of business model innovation

This study investigates how commercial banks in developed and developing countries have adapted their business models in response to Industry 4.0 technologies Drawing on a longitudinal content analysis of 969 annual reports from 57 banks across 33 countries, we identified four distinct phases of adaptation: pre-digital, digitalisation, and two successive waves of digital transformation. Beyond this temporal dimension, the study reveals three heterogeneous strategic models of business model innovation: collaboration, hyper-personalisation, and financial inclusion. These models highlight how contextual asymmetries between developed and developing economies shape diverse pathways of digital transformation. By integrating Industry 4.0 technologies within a business model innovation framework, this research advances theory on digital transformation as a heterogeneous and institutionally embedded process, while offering practical guidance for managers and policymakers seeking to balance innovation, competitiveness, and inclusion.