The Adoption of Digital Banks as a Mechanism for the Modernization of Competition in the Algerian Banking Sector

Abstract

In light of the tremendous digital revolution witnessed globally over the past decades, which has transformed patterns of life and contributed to facilitating numerous transactions and services via the Internet across all economic and social spheres, the banking sector has not been immune to its impact, Indeed, all sectors have increasingly come to rely entirely on advanced technologies to provide their services without the need for traditional branches, thereby accelerating transactions and enhancing the quality of services delivered.
Accordingly, the changes and transformations witnessed in the modern banking environment have generated a new reality, one that can be regarded as a new business paradigm whose central characteristic is “competition.” this competition constitutes the principal challenge facing contemporary banks, representing a factor that is continuously evolving and shifting, consequently, banks are required to grow and develop in ways that enable them to transcend traditional boundaries. In this regard, reliance on digital technology emerges as one of the fundamental challenges for business organizations and banks alike, being considered a strategic option and an essential factor in achieving competitive advantage, this is due to the significant role it plays in enabling such institutions to improve their performance, maximize profitability, and strengthen their economic power within the banking market .