Paradigm shift in banking governance in the light of the digital transformation: a dual impact disciplinary and cognitive

Abstract

For nearly four decades, we have been witnessing the development of the concept of corporate governance. This concept has evolved considerably since its appearance because of its multidisciplinary nature and the high diversity of its theoretical grids. There are two main theoretical approaches. The disciplinary and the cognitive approaches. Given the challenges and opportunities of digital transformation, and its inevitable impact on the bank's business model, it is natural that it also impacts on its governance. This impact can be analysed from the two dimensions of governance. First, a cognitive dimension, which concerns all the players in the governance system, particularly the board of directors. Then, a disciplinary dimension dictated by the radical transformation of the confidence relations (Board of Directors / managers) established by the blockchain technology which could call into question the notion of opportunism advocated by the agency theory as the basis of the disciplinary approach of governance. In this paper, we will explore from an unprecedented analysis the impact of digital transformation on banking governance. This analysis will focus on the two dimensions of governance: disciplinary and cognitive. Finally, an empirical study will be presented on the digital transformation at the level of Moroccan banks which refers to the cognitive aspects of governance.