Abstract

This study aims to develop a native model for digital transformation in the Iranian banking system, with an emphasis on the role of FinTechs. Despite notable advancements in electronic banking, the Iranian banking system continues to face structural, cultural, regulatory, and technological challenges. While FinTechs serve as engines of transformation, in the absence of a coherent framework, they can also introduce significant risks. The research is applied in terms of purpose and descriptive-analytical in terms of methodology, employing a qualitative approach. The statistical population consisted of 13 experts from Bank Melli Iran, selected through snowball sampling, all of whom had at least five years of practical experience in digital transformation, emerging technologies, and collaboration with FinTechs. Data were collected through semi-structured interviews and analyzed using the grounded theory method across three stages: open, axial, and selective coding. The final model was organized into six main categories: causal conditions (technology acceptance, FinTech innovation, innovative culture, and managerial support); contextual conditions (economic, legal, technological, cultural, and infrastructural environments); the core phenomenon (digital customer, digital processes, cybersecurity, and FinTech collaboration); intervening conditions (data quality, facilitation of FinTech communication, employee adoption, and leadership); strategies (innovation management, digital marketing, and change and risk management); and consequences (enhanced security, productivity, and competitiveness). The findings indicate that digital transformation is not a one dimensional project; rather, the alignment of four key technological infrastructure, managerial commitment, an innovative culture, and transparent regulations is essential. FinTechs are not competitors but facilitators of innovation, enhancing banks' by reducing costs, accelerating development, and delivering personalized services. However, without data governance, intelligent oversight, and human resource empowerment, such collaboration may security risk. The proposed model provides a practical roadmap for Iranian banks and holds strategic implications for , banking executives, and FinTech firms.

Keywords: Banking System, Digital Banking, Digital Innovation, FinTech.