1. Advanced studies in Operation Management
Ain Shams University, DBA Students, June 2021
The Effect of COVID-19 on the Acceleration of Digital
Transformation in the Egyptian Banking Sector”
Supervised by Prof. Saeid El-khouly
• Doha Hassan, hanindohaq@gmail.com
• Eman Awadallah Mikhael (Group Leader) eman.awad@arabbank.com.eg
• Mary George Mary.georgefarouk@gmail.com
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Introduction
Aim and objective of the
research
Literature Review
Advantage and
disadvantage of Digital
transformation
Research Questions
Objective of the Study
METHODOLOGY AND
ANALYSIS
Results and conclusion
3. Abstract
• COVID-19 pandemic has massively driven people, organizations
and governments to digital platforms to be able to cope with the
impact of COVID-19 pandemic where social distance has become
the nowadays trend in all societies.
Objective of the study
• The main objective of the study is to measure the impact of
COVID-19 on the acceleration of digital transformation in the
banking sector .
4. • The pandemic caused by COVID-19 have massive effects on
the global economy where the Economy of most of the world
suffers from a huge disturbance.
• Knowing that; the banking sector and all the financial
institutions are considered the backbone of economy and
during the last years the banking sector have achieved a huge
milestone in the adoption of Technology toward a digitalized
services and money transfers between different types of
wallets without human interference at all.
• During the Last year, Main pillars of the economy (Banking,
Health, Education…) are increasingly putting the digital
transformation at front and center of policy agendas.
Introduction
5. • Also , Many governments and institutions had strengthened
their strategic approach to the digital transformation prior to
the COVID-19 pandemic.
• Governments are also devoting more attention to emerging
digital technologies such as AI, blockchain and 5G
infrastructure, the latter of which is critical to support
enhanced mobile broadband, Internet of Things (IoT) devices
and AI applications.
• By mid-2020, 60 countries had a national AI strategy, and in
the last two years several countries – including Australia,
Austria, Colombia, France, Germany, Korea, Spain, the
United Kingdom and the United States – have issued national
5G strategies.
6. In this regard, study reviewed
the literature and concepts of digital transformation
And
the impact of COVID-19 on the acceleration
of digital transformation
in the Egyptian banking sector
7. Literature Review
• COVID-19 is a new strain of coronavirus that has not
been previously identified in humans. The COVID-19
is the cause of an outbreak of respiratory illness first
detected in Wuhan, China. Since December 2019,
cases have been identified in a growing number of
countries
• Banking Industry Information Technology, Banks
have been the most important users of information
technology and also have the biggest appetite for new
technology and by all appearances this trend has
continued .
8. • Banking Sector Operations Management, is a
transformation system that converts inputs such as
employees, computer equipment, facilities, energy and
money into outputs that include loans and deposits.
• A careful analysis of external and internal forces must be
done because the strategy defines how the bank intends to
compete.
External Forces (competition, customers, economics,
technology, and social trends).
Internal Forces: include resources, skills of work force,
facilities, and current systems.
• Based on which business strategy the board of directors
chooses, the bank’s operations strategy must be aligned
with the business strategy .
9. Digital transformation
Advantage Disadvantage
1. Convenience
2. 24/7 Service
3. Time-Saving
4. Automated Transfer
5. Easier Management
1. low Security Issues
2. limited variety Services
3. complex Transactions
10. 1.To what extent does Covid-19 affect acceleration of digital
transformation?
2.Does Covid-19 has significant effect on the acceleration of
digital transformation in Egyptian Bank
1)To Analyze acceleration of banking digital transformation in
Egyptian banks with respect to Covid-19.
2)To Evaluate the acceleration of banking digital transformation
in Egyptian banks with respect to Covid-19.
Research Questions
Objective of the Study
11. Limitations of the Study
1. This research was conducted in a limited area.
2. sample size was confined only to 35 respondents
3. Gap in customer expectations:
4. Lack of Technology Skills.
Hypothesis
H1: There is a significant effect between covid – 19 effect and the `
acceleration of digital transformation in Egyptian banks.
H0: There is no significant effect between covid – 19 effect and the `
acceleration of digital transformation in Egyptian banks.
12. METHODOLOGY AND ANALYSIS
Qualitative method was chosen to lead this study as, It is
the most suited approach.
Target Population
• Public and Private
Egyptian banks’
personnel.
Design
• Sample consists
of 35 Respondents
• The questionnaire
completion
duration was one
week
• during May 2021.
Questionnaire
• The questionnaire
has been used to
collect data from
samples to test the
hypotheses of this
study.
13. Questionnaire
• The second section of questionnaire focuses on
1. understanding users’ perspectives on Internet banking,
2. their experience with Internet banking, and
3. their expectations on Internet banking services.
4. Only summary measures and conclusions from this survey will be reported.
• First section of questionnaire focuses on the demographics factors
Gender :To recognize percentage of male and female and their opinions
• Age : To find the age of customers
• Education :To recognize the customer’s educational background
14. Data Analysis :
Data will be analyzed in terms of :
.
• Correlation
• Descriptive Analysis
• SPSS-21 version was used
for data analysis purpose
and following technique
used were Cronbach’s
alpha , Descriptive
statistics
15. Results
As a result, the analysis of data showing that there is a significant effect
between covid – 19 effect on acceleration of banking digital transformation
in Egyptian banks.
The more these customers realize how convenient it is to bank digitally, the
less likely they are to go back to physical branches. And as the importance of
digital banking distribution channels increases in the aftermath of the
COVID-19 crisis, we are likely to see significant acceleration of key digital
transformation.
The current pandemic has forced customers who once resisted online
banking to adopt digital banking apps as their new default.
16. • Competition in banking industry, requiring banks to increase their agility
in execution. Given that the digital capacities required to handle the
COVID-19 crisis align well with the digital transformation trends required
for banks to capitalize on in the long run, the digital banking landscape
after COVID-19 is unlikely to be radically different from the one that
preceded it.
• Instead of doing a fundamental change, key digital trends already in
place will significantly accelerate as a consequence of the Covid-19
pandemic.
• Banks that are able to transform themselves into truly effective digital
organizations and capitalize on evolving and accelerating digital trends will
not only survive but also thrive in the future digital landscape.
Results and conclusion
17. • Adoption of next-generation technologies In the near future,
banks will be dealing with an accelerated pace of change in the
digital market. Post-COVID-19, digital banking distribution will be
of central importance, as the pace of competition and innovation in
digital banking
• Increase the security of electronic Services
• Through Implementing digital onboarding processes that could
enable customers to access financial services remotely and enable
financial institutions to meet compliance obligations. , such as the
Payment Protection Program (PPP).
Recommendations (Action Plan):
18. • Adopt bank app. Service to be convenience with low
experience customers by offering a streamlined and
simplified user experience, designed to reduce barriers of
digital and financial literacy. This will open up digital banking
to customer segments that are less technological awareness.
• Enhance customer engagement By implementing
sophisticated data analytics tools combined with real-time
campaign management that enable banks translate their
customers’ data into meaningful insights and act on those
insights by delivering appropriate recommendations at the
right time and place. This will generate engagement and
revenue.
• Improve Employee skills by implementing training courses
for the new technology application.
