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Process digitisation in retail banking: an empirical examination of process virtualization theory

Published Online:pp 364-379

The increasing digitisation impacts work and life. Process virtualization theory (PVT) offers a new, yet largely empirically unsupported theory to determine which processes are amenable to virtualisation. The paper at hand applies the theory to virtualisation that is established through the internet and commonly referred to as digitisation. As one of the most impacted areas for digitisation, we focus on the area of retail banking. A quantitative study among 368 German retail banking customers examines the PVT-based research model. The results indicate that sensory requirements and control requirements are the two strongest inhibitors for intended digital process use. The empirical examination of the rarely tested PVT contributes to a more thorough understanding how process-specific factors influence the digitisation in retail banking. Practitioners can use our results to increase the rate of digital transactions by addressing the suggested inhibitors of PVT. As a result, increased digitisation can improve the operational efficiency.


PVT, process virtualisation theory, internet banking, quantitative study, intended use, retail banking, process digitisation, e-banking, electronic banking, online banking, Germany