Purpose : The primary objective of this paper was to conduct a thorough analysis of the banking sector’s altering dynamics. In doing so, the study answered questions regarding the current picture of the banking landscape as well as the potential future avenues that can be explored by scholars in this domain.

Methodology : The research design of this study was based on a systematic literature review (SLR). One hundred sixty-eight documents retrieved from the Scopus database for the period 1990 to 2022 were scrutinized through in-depth content analysis to identify their focal themes and trace the changing shapes of the banking sector.

Findings : A total of six broad themes were identified, which portray the various modifications in the banking industry across the globe in the past three decades. These banking adaptations cut across various dimensions such as technology, innovations, consumers, products, as well as bank expansions and have left an indelible mark on the banking operations and models.

Implications : The study has implications for banking organizations, facilitating them in understanding, adapting, as well as adopting a forward-looking approach to various upgradations in the banking arena. It would also enable future research scholars to trace the developments in the banking landscape and work on the directions highlighted through the review.

Originality : Despite the availability of a large pool of studies on the banking sector, the literature failed to juxtapose changes from the past to the present in areas of emerging technology, regulation, and the like. The current study filled this research gap by providing new insights, as well as by synthesizing and contextualizing the body of existing information on the changing dynamics of the banking sector in order to present a comprehensive overview of the subject.

1. Adrian, T., & Ashcraft, A. B. (2016). Shadow banking: A review of the literature. In G. Jones (ed.), Banking crises. Palgrave Macmillan. https://doi.org/10.1057/9781137553799_29
2. Akhavein, J., Frame, W. S., & White, L. J. (2005). The diffusion of financial innovation: An examination of the adoption of small business credit scoring by large banking organizations. Journal of Business, 78(2), 577–596. https://doi.org/10.1086/427639
3. Alam Iqbal, B., & Sami, S. (2016). Role of banks in financial inclusion in India. ContaduríA Y AdministracióN, 62(2), 644-656. https://doi.org/10.1016/j.cya.2017.01.007
4. Allen, F., & Carletti, E. (2006). Credit risk transfer and contagion. Journal of Monetary Economics, 53(1), 89–111. https://doi.org/10.1016/j.jmoneco.2005.10.004
5. Altunbas, Y., Gambacorta, L., & Marques - Ibanez, D. (2007). Securitisation and the bank lending channel. European Economic Review, 53(8), 996–1009. https://doi.org/10.1016/j.euroecorev.2009.03.004
6. Amihud, Y., DeLong, G. L., & Saunders, A. (2002). The effects of cross-border bank mergers on bank risk and value. Journal of International Money and Finance, 21(6), 857–877. https://doi.org/10.1016/S0261-5606(02)00026-8
7. Bauer, P. W., & Hancock, D. (1995). Scale economies and technological change in Federal Reserve ACH payment processing (Third Q III). Economic Review, Federal Reserve Bank of Cleveland, 14–29. https://fraser.stlouisfed.org/files/docs/publications/frbclevreview/pages/1995-1999/68731_1995-1999.pdf
8. Berger, A. N., & Udell, G. F. (2006). A more complete conceptual framework for SME finance. Journal of Banking & Finance, 30(11), 2945–2966. https://doi.org/10.1016/j.jbankfin.2006.05.008
9. Bonin, J. P., & Abel, I. (2000). Retail banking in Hungary: A foreign affair? https://papers.ssrn.com/sol3/papers.cfm?abstract_id=260759
10. Buch, C. M., & DeLong, G. (2004). Cross-border bank mergers: What lures the rare animal? Journal of Banking & Finance, 28(9), 2077–2102. https://doi.org/10.1016/j.jbankfin.2003.08.002
11. Chinloy, P., & Macdonald, N. (2005). Subprime lenders and mortgage market completion. Journal of Real Estate Finance and Economics, 30, 153–165. https://link.springer.com/article/10.1007/s11146-004-4877-x
12. Chiu, I. H. (2016). Fintech and disruptive business models in financial products, intermediation and markets-policy implications for financial regulators. Journal of Technology Law & Policy, 21, 55. https://heinonline.org/HOL/LandingPage?handle=hein.journals/jtlp21&div=6&id=&page=.
13. Cordell, L., Dynan, K., Lehnert, A., Liang, N., & Mauskopf, E. (2008). The incentives of mortgage servicers: Myths and realities. https://www.federalreserve.gov/econres/feds/theincentives-of-mortgage-servicers-myths-and-realities.htm
14. Dahiya, S., John, K., Puri, M., & Ramirez, G. (2003). Debtor-in-possession financing and bankruptcy resolution: Empirical evidence. Journal of Financial Economics, 69(1), 259–280. https://doi.org/10.1016/S0304-405X(03)00113-2
15. Degryse, H., & Ongena, S. (2007). The impact of competition on bank orientation. Journal of Financial Intermediation, 16(3), 399–424. https://doi.org/10.1016/j.jfi.2007.03.002
16. Del Negro, M., & Otrok, C. (2005). Monetary policy and the house price boom across U.S. states. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=831066
17. Delgado, J., Hernando, I., & Nieto, M. J. (2007). Do European primarily internet banks show scale and experience efficiencies? European Financial Management, 13(4), 643–671. https://doi.org/10.1111/j.1468-036X.2007.00377.x
18. DeYoung, R. (2005). The performance of internet-based business models: Evidence from the banking industry. Journal of Business, 78(3), 893–947. https://www.jstor.org/stable/10.1086/429648
19. DeYoung, R., Lang, W. W., & Nolle, D. L. (2007). How the internet affects output and performance at community banks. Journal of Banking & Finance, 31(4), 1033–1060. https://doi.org/10.1016/j.jbankfin.2006.10.003
20. Duffie, D. (1992). Dynamic asset pricing theory. Princeton University Press.
21. Duffie, D. (2007). Innovations in credit risk transfer: Implications for financial stability. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1165484
22. Durkin, T. A., & Elliehausen, G. E. (2010). Financial economics of information disclosure: Applications to truth-in-lending. Oxford University Press. https://openlibrary.org/books/OL10133656M/Financial_Economics_of_Information_Disclosure
23. Elliehausen, G. E., & Lawrence, E. C. (2001). Payday advance credit in America: An analysis of customer demand (Credit Research Center Monograph 35). Georgetown University, McDonough School of Business.
24. Elliehausen, G., & Staten, M. E. (2004). Regulation of subprime mortgage products: An analysis of North Carolina's predatory lending law. The Journal of Real Estate Finance and Economics, 29, 411–433. https://doi.org/10.1023/B:REAL.0000044021.07237.42
25. Elsas, R., Heinemann, F., & Tyrell, M. (2004). Multiple but asymmetric bank financing: The case of relationship lending (CESifo Working Paper No. 1251). https://www.econstor.eu/handle/10419/18889
26. Frame, W. S., & White, L. J. (2010). The federal home loan bank system: Current issues in perspective. In, V. Ghosal (ed.), Reforming rules and regulations: Laws, institutions, and implementation. The MIT Press.
27. Frame, W. S., Padhi, M., & Woolsey, L. (2004). The effect of credit scoring on small business lending in low- and moderate-income areas. The Financial Review, 39(1), 35–54. https://doi.org/10.1111/j.0732-8516.2004.00066.x
28. Frame, W. S., Srinivasan, A., & Woosley, L. (2001). The effect of credit scoring on small business lending. Journal of Money, Credit, and Banking, 33(3), 813–825. https://www.jstor.org/stable/2673896
29. Furst, K., Lang, W. W., & Nolle, D. E. (2002). Internet banking. Journal of Financial Services Research, 22, 95–117. https://doi.org/10.1023/A:1016012703620
30. Galletta, S., Mazzù, S., Naciti, V., & Vermiglio, C. (2022). Gender diversity and sustainability performance in the banking industry. Corporate Social Responsibility and Environmental Management, 29(1), 161–174. https://doi.org/10.1002/csr.2191
31. Gowrisankaran, G., & Stavins, J. (2004). Network externalities and technology adoption: Lessons from electronic payments (NBER Working Paper 8943). National Bureau of Economic Research. https://www.nber.org/papers/w8943
32. Goyal, K. (2023). Financial literacy during a crisis: Financial lessons learned from COVID-19. Management Dynamics, 23(2), 169–181. https://managementdynamics.researchcommons.org/journal/vol23/iss2/1/
33. Grover, A., & Chawla, G. (2022). Antecedents of employee experience: A systematic review of literature. Management Dynamics, 22(2), 90–100. https://doi.org/10.57198/2583-4932.1309
34. Guillen, M. F., & Tschoegl, A. E. (1999). At last internationalization of retail banking? The case of the Spanish Banks in Latin America. Available at SSRN. https://dx.doi.org/10.2139/ssrn.184874
35. Gupta, J., & Sardana, V. (2021). Deposit insurance and banking risk in India: Empirical evidence on the role of moral hazard. MUDRA: Journal of Finance and Accounting, 8(2), 79–94. https://doi.org/10.17492/jpi.mudra.v8i2.822105
36. Ho, G., & Pennington-Cross, A. (2006). The impact of local predatory lending laws on the flow of subprime credit. Journal of Urban Economics, 60(2), 210–228. https://doi.org/10.1016/j.jue.2006.02.005
37. Jaffee, D. M., & Modigliani, F. (1969). A theory and test of credit rationing. The American Economic Review, 59(5), 850–872. https://www.jstor.org/stable/1810681
38. Jain, S., Bagga, T., & Aggarwal, R. (2021). ICICI Bank Ltd. - Quintessence of corporate governance failure and board ineffectiveness. Prabandhan: Indian Journal of Management, 14(12), 8–18. https://doi.org/10.17010/pijom/2021/v14i12/167457
39. John, K., Saunders, A., & Senbet, L. W. (2000). A theory of bank regulation and management compensation. The Review of Financial Studies, 13(1), 95–125. https://www.jstor.org/stable/2646082
40. Keys, B. J., Mukherjee, T., Seru, A., & Vig, V. (2010). Did securitization lead to lax screening? Evidence from subprime loans. The Quarterly Journal of Economics, 125(1), 307–362. https://doi.org/10.1162/qjec.2010.125.1.307
41. Kumar, M., & Yadav, G. C. (2013). Liquidity risk management in the bank: A conceptual framework. AIMA Journal of Management & Research, 7(2/4), Article 3. https://apps.aima.in/ejournal_new/articlesPDF/Manish-Kumar.pdf
42. Kumar Singh, A., Sardana, V., Singhania, S., Vikram, A., & Kumar Attree, A. (2022). Impact of board composition on bank performance: Evidence from the Indian banking sector. Prabandhan: Indian Journal of Management, 15(11), 8–23. https://doi.org/10.17010/pijom/2022/v15i11/172520
43. Loutskina, E., & Strahan, P. E. (2006). Securitization and the declining impact of bank finance on loan supply: Evidence from mortgage acceptance rate (Working Paper 11983). National Bureau of Economic Research.
44. Machauer, A., & Weber, M. (2000). Number of bank relationships: An indicator of competition, borrower quality, or just size? (CFS Working Paper No. 2000/06). Goethe University Frankfurt, Center for Financial Studies (CFS). https://www.econstor.eu/handle/10419/25370
45. Mainrai, G., & Mohania, S. (2020). Post-merger changes in public sector banks: A case of National Bank Ltd. and Bank of Gujarat Ltd. Prabandhan: Indian Journal of Management, 13(4), 57–64. https://doi.org/10.17010/pijom/2020/v13i4/151826
46. Masciandaro, D. (2001). In offense of usury laws: Microfoundations of illegal credit contracts. European Journal of Law and Economics, 12, 193–215. https://doi.org/10.1023/A:1012813724643
47. Mayer, C., Pence, K., & Sherlund, S. M. (2009). The rise in mortgage defaults. Journal of Economic Perspectives, 23(1), 27–50. https://doi.org/10.1257/jep.23.1.27
48. Mishra, A., & Sharma, M. (2023). Artificial intelligence and its impact on different business functions. Management Dynamics, 23(2), Article 6. https://doi.org/10.57198/2583-4932.1328
49. Morrison, A. D. (2005). Credit derivatives, disintermediation, and investment decisions. The Journal of Business, 78(2), 621–648. https://doi.org/10.1086/427641
50. Narasimha Rao, V. (2013). Technology management in banks: An empirical study with special reference to State Bank of India. Prabandhan: Indian Journal of Management, 6(2), 5–14. https://doi.org/10.17010/pijom/2013/v6i2/59967
51. Navaretti, G. B., Calzolari, G., Mansilla-Fernandez, J. M., & Pozzolo, A. F. (2018). Fintech and banking. Friends or foes? Available at SSRN. https://dx.doi.org/10.2139/ssrn.3099337
52. Oware, K. M., & Mallikarjunappa, T. (2021). Financial performance and gender diversity. The effect of family management after a decade attempt. Society and Business Review, 16(1), 94–112. https://doi.org/10.1108/SBR-05-2020-0072
53. Peristiani, S. (1993). The effects of mergers on bank performance. In, Studies on excess capacity in the financial sector. Federal Reserve Bank of New York. https://www.semanticscholar.org/paper/The-effect-of-mergers-on-bank-performance-Peristiani/d12fb6c3a14de1affb7264108f4d479cfa226391
54. Petersen, M. A., & Rajan, R. G. (1994). The benefits of lending relationships: Evidence from small business data. The Journal of Finance, 49(1), 3–37. https://doi.org/10.1111/j.1540-6261.1994.tb04418.x
55. Purdy, M., & Daugherty, P. (2016). Why artificial intelligence is the future of growth. Accenture. https://dl.icdst.org/pdfs/files2/2aea5d87070f0116f8aaa9f545530e47.pdf
56. Rajan, R. G. (1992). Insiders and outsiders: The choice between informed and arm's-length debt. The Journal of Finance, 47(4), 1367–1400. https://doi.org/10.1111/j.1540-6261.1992.tb04662.x
57. Sardana, V., & Shukla, A. (2020). Deposit insurance coverage limit: How much is enough? Evidence from India. Indian Journal of Finance and Banking, 4(4), 66–83. https://doi.org/10.46281/ijfb.v4i4.912
58. Sardana, V., & Singhania, S. (2022). Fifty years of research in deposit insurance: A bibliometric analysis and review. FIIB Business Review. https://doi.org/10.1177/23197145221116455
59. Sardana, V., & Singhania, S. (2023). Mapping the field of research on entrepreneurial success: A bibliometric study and future research agenda. International Journal of Business Science & Applied Management, 18(2), 54–79.
60. Sardana, V., Mohapatra, A. K., Singh, A. K., & Singhania, S. (2023). Unveiling insurance and risk management insights through bibliometric and cluster analysis. Prabandhan: Indian Journal of Management, 16(11), 8–26. https://doi.org/10.17010/pijom/2023/v16i11/173213
61. Schueffel, P. (2016). Taming the beast: A scientific definition of fintech. Journal of Innovation Management, 4(4), 32–54. https://doi.org/10.24840/2183-0606_004.004_0004
62. Sharpe, S. A. (1990). Asymmetric information, bank lending, and implicit contracts: A stylized model of customer relationships. The Journal of Finance, 45(4), 1069–1087. https://doi.org/10.1111/j.1540-6261.1990.tb02427.x
63. Shihadeh, F. (2020). The influence of financial inclusion on banks' performance and risk: New evidence from MENAP. Banks and Bank Systems, 15(1), 59–71. http://dx.doi.org/10.21511/bbs.15(1).2020.07
64. Singh, A. K., Kota, H. B., Sardana, V., & Singhania, S. (2021). Does gender diversity on board promote corporate social responsibility? An empirical analysis of sustainable development goals. Australasian Accounting, Business and Finance Journal, 15(5), 22–40. https://dx.doi.org/10.14453/aabfj.v15i5.3
65. Singh, A. K., Singhania, S., & Sardana, V. (2019). Do women on boards affect firm's financial performance? Evidence from Indian IPO firms. Australasian Accounting, Business and Finance Journal, 13(2), 53–68. https://dx.doi.org/10.14453/aabfj.v13i2.4
66. Singhania, S., Singh, R. K., Singh, A. K., & Sardana, V. (2022). Corporate governance and risk management: A bibliometric mapping for future research agenda. Indian Journal of Corporate Governance, 15(2), 223–255. https://doi.org/10.1177/09746862221126351
67. Stavins, J. (2001). Effect of consumer characteristics on the use of payment instruments. New England Economic Review, Issue 3, 19–31. https://www.bostonfed.org/-/media/Documents/neer/neer301b.pdf
68. Stein, J. C. (2002). Information production and capital allocation: Decentralized versus hierarchical firms. The Journal of Finance, 57(5), 1891–1921. https://doi.org/10.1111/0022-1082.00483
69. Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. The American Economic Review, 71(3), 393–410. https://www.jstor.org/stable/1802787
70. Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207–222. https://doi.org/10.1111/1467-8551.00375
71. United Nations, Department of Economic and Social Affairs. (2015). Global sustainable development report. https://www.un.org/en/development/desa/publications/globalsustainable-development-report-2015-edition.html#:~:text=The%202015%20Global%20Sustainable%20Development,implementation%20of%20the%20new%20sustainable
72. United Nations, Department of Economic and Social Affairs. (2020). The sustainable development report. https://unstats.un.org/sdgs/report/2020/
73. Vives, X. (2019). Digital disruption in banking. Annual Review of Financial Economics, 11, 243–272. https://doi.org/10.1146/annurev-financial-100719-120854
74. von Thadden, E.-L. (1992). The commitment of finance, duplicated monitoring, and the investment horizon (Working Paper). Center for Economic Policy Research 27. https://ideas.repec.org/p/cpr/ceprfm/0027.html
75. Wheelock, D. C., & Wilson, P. W. (2000). Why do banks disappear? The determinants of U.S. bank failures and acquisitions. The Review of Economics and Statistics, 82(1), 127–138. https://doi.org/10.1162/003465300558560
76. Winton, A. (1999). Don't put all your eggs in one basket? Diversification and specialization in lending. Available at SSRN. https://dx.doi.org/10.2139/ssrn.173615
77. Yadav, R. K., & Mohania, S. (2020). Merger of public sector banks: A case of Chennai Bank Ltd. and Bhopal Bank Ltd. Prabandhan: Indian Journal of Management, 13(2), 50–58. https://doi.org/10.17010/pijom/2020/v13i2/150564
78. Zveryakov, M., Kovalenko, V., Sheludko, S., & Sharah, E. (2019). FinTech sector and banking business: Competition or symbiosis? Economic Annals-XXI, 175(1–2), 53–57. https://www.ceeol.com/search/article-detail?id=791630