Factor conditions and capability building of artificial intelligence empowered digital transformation in the banking sector: a case study of a Chinese bank

Digital capabilities and financial technologies have gained increasing attention in recent years. However, the factor conditions and capability building are not clarified and there is no comprehensive competency model to summarise the theoretical findings and industrial practices. Herein, an in-depth single case study of the largest state-owned commercial bank in China was conducted to explore factor conditions and capability building of digital transformation in the banking sector using interviews and questionnaires. The findings identified three driving factors and four restraining factors of digital transformation, and a synergy-technology-agility-resource (STAR) business model was proposed subsequently to match these factor conditions. Furthermore, a fuzzy-set qualitative comparative analysis (fsQCA) approach was adopted to analyse factor configurations and further demonstrate the qualitative results. This study contributed to the field by summarising the factor conditions and business capabilities of artificial intelligence (AI) applications in the banking industry, categorising the digital transformation processes into several configuration solutions, and providing a theoretical framework and practical guidance for academia and industry.