Abstract Digital transformation in the banking industry is a continuous process that significantly reshapes internal processes and operational flows. It raises important dilemmas regarding the geographical distribution of bank branches, the efficient use of physical space, and the extent to which services can be delivered exclusively through technology without human involvement. At the same time, customers continue to rely on physical branches, particularly for complex operations such as mortgage lending, specialized financial advice, or other non-standard transactions. Consequently, traditional branches remain an important pillar in maintaining trust and long-term relationships between banks and their customers. Digital transformation is driven by multiple factors, including the ability to provide services without physical presence, 24/7 availability, customer base expansion, and cost optimization. Advanced technologies have simplified and accelerated key processes, such as account opening, improving efficiency and customer experience. This paper analyzes the evolution of digitalization in commercial banks and its impact on branch networks, workforce, and profitability. Using the Pearson correlation method, it examines the relationship between online banking penetration and banking performance. While existing literature focuses primarily on operational and technological benefits, it pays limited attention to the structural effects of branch downsizing on competition, regional accessibility, and customer trust. The paper is structured as follows: Section 2 reviews the literature and conceptual background; Section 3 presents the methodology and data analysis; Section 4 discusses the empirical results; and Section 5 concludes with key findings, managerial implications, and future research directions.
PODARU et al. (Mon,) studied this question.
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