Impact of digitalization on organizational performance: A decision-making perspective in banking sector

Decision-making involves selecting the best option among alternatives, and better decisions drive stronger organizational performance. Banks, as the largest enterprises within global and Turkish markets, play a critical role in economic systems. As of 2023, the total assets of Turkish banks equate to nearly 90% of the country's GDP, with credits comprising half of these assets. Over the past decade, the asset size and credit volume of Turkish banks have grown tenfold, while branch networks and employee numbers have shrunk by over 15 % and 6% respectively. Simultaneously, the ratio of Non-Performing Loans (NPL) to total loans has decreased. The rise of e-commerce and digital banking, especially following the COVID-19 pandemic, has significantly influenced consumer behavior. Digital banking, while not new to banks, was accelerated by pandemic-induced restrictions, leading to sustained growth in e-commerce transactions and digital banking usage. Legislative changes allowing remote customer onboarding enabled individuals and businesses to become bank customers without visiting branches. Retail customers, in particular, preferred this process to save time, while banks established instant credit limits through mobile applications. By 2023, over 60% of consumer loans were accessed via mobile banking, with similar trends observed in SME and commercial customer onboarding. E-commerce platforms further supported banks' customer acquisition and credit growth, while enabling profit generation through credit interest and transaction fees. Partnerships with Fintech firms have also driven digitalization in banks. Fintechs, known for their agile structures and innovative solutions, provide niche capabilities that banks leverage to enhance their technological infrastructure. Banks either invest in or collaborate with these firms, promoting efficiency and customer satisfaction. This evolution raises the research question: How does digitalization impact bank performance from a decision-making perspective? Given that digitalization requires strategic investments and banks must make critical decisions on credit allocation and pricing, understanding its influence on decision-making is essential. Keywords: Automated Decision Making; Banking; Decision Making; Digitalization; Fintech; Organizational Performance; Profitability.