Digital Transformation of Rural Banks: Scale Development and Validation

The digital transformation of banks has recently attracted significant interest from both academia and practice. However, despite the proliferation of relevant academic and non-academic literature, there is no validated scale to measure the level of digital transformation of rural banks (DTORB). This study attempts to fill this gap using a mixed-method approach. First, we used transcribed interviews with 45 rural banking experts and an extensive literature review to construct initial items for the DTORB scale. Then, the initial scale was quantitatively validated using questionnaire data collected from 685 Chinese rural bank managers. The results of the study provide a scale consisting of 18 items conceptualized into five factors: digital technology, digital products, digital strategy, digital inputs, and digital cooperation. The scale was validated by exploratory factor analysis and validation factor analysis. This research suggests three policy implications. First, government departments should formulate and improve policies to support the digital transformation of rural banks. Second, the government should emphasize the construction of digital ecology in rural areas. Third, government departments should actively promote the construction of public technology service platforms. This study provides a theoretical foundation for subsequent in-depth research on digital transformation in rural banks, as well as important insights for rural bank owners and managers.