Developing a Process Model for Electronic Banking Development: The Case of Bank Melli Iran

Abstract

This study aimed to develop a process-oriented model for electronic banking development in Bank Melli Iran by identifying its causal conditions, central phenomenon, intervening conditions, strategic responses, and consequences through a grounded theory approach. This qualitative study employed grounded theory as the principal methodological framework. The study population consisted of managers, specialists, and experts with professional knowledge and experience in electronic banking and banking technologies. Participants were selected through purposive, theoretical, and snowball sampling, and data collection continued until theoretical saturation was achieved. Data were obtained primarily through in-depth semi-structured interviews, supplemented by observations, documents, and researcher memos. The interview data were transcribed and analyzed manually through the three stages of open, axial, and selective coding. Constant comparison was applied throughout data collection and analysis to refine concepts, establish relationships among categories, and develop the final paradigmatic model. The analysis showed that electronic banking development was shaped by four principal causal categories: security, convenience and simplicity, development processes, and reliability. The central phenomenon was identified as the development and enhancement of electronic banking services, encompassing advanced banking services, efficient utilization of technological capabilities, cost reduction, private banking, customer choice, financial advisory services, customer motivation, social value creation, and information provision. Environmental conditions, information technology, and the structure of the banking network emerged as major intervening conditions. The principal strategic categories were value creation and electronic banking intelligence, including needs-based service provision, service customization, customer knowledge management, research and development, business analytics, and organizational agility. The resulting consequences included financial and professional benefits for customers, improved perceptions of service quality and interactions, and strengthened customer retention and loyalty. Selective coding integrated these dimensions into a coherent process model of electronic banking development. The findings indicate that successful electronic banking development requires the simultaneous alignment of technological infrastructure, security, customer-oriented service design, organizational intelligence, regulatory support, managerial capability, and integrated banking processes; coordinated implementation of these dimensions can enhance service quality, reduce costs, strengthen customer relationships, and improve the long-term effectiveness of electronic banking.