Data-Driven Digital Transformation in the Financial Industry: Strategic Logic, Platform Support, and Market Microstructure Effects

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Published: 2026-03-14
Keywords:
digital transformation, financial industry, data-driven, platform economy, market microstructure, algorithmic trading, FinTech

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Christopher L. Bennett
Pace University, New York, NY 10038, USA

Abstract

This review paper explores the multifaceted impact of data-driven digital transformation within the financial industry, focusing on strategic logic, platform support, and market microstructure effects. Digital transformation, fueled by advancements in data analytics, artificial intelligence, and blockchain, is reshaping financial services. We analyze how financial institutions are leveraging data to enhance strategic decision-making, improve operational efficiency, and create innovative products and services. The paper examines the role of platform-based business models in facilitating this transformation, highlighting the challenges and opportunities associated with integrating diverse data sources and legacy systems. Furthermore, we investigate the effects of data-driven technologies on market microstructure, including algorithmic trading, high-frequency trading, and market manipulation. A comprehensive review of existing literature and empirical studies is conducted to provide a nuanced understanding of the complex interplay between data, technology, and financial markets. Finally, we identify key research gaps and suggest directions for future research in this rapidly evolving field, with particular attention to regulatory implications and ethical considerations. This literature review aims to provide a strategic guideline for banking institution leaders, policymakers, and academics to understand various data strategies.

Article Details

Issue

Vol. 2 No. 1 (2026)

Section

Articles

How to Cite

Data-Driven Digital Transformation in the Financial Industry: Strategic Logic, Platform Support, and Market Microstructure Effects. (2026). Hua Xia Xin Zhi, 2(1), 56-63. https://journals.hubblepress.com/index.php/hxxz/article/view/21

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