The effect of digital disruption on corporate banking strategic planning: A case study of Sterling Bank, Kano.

The effect of digital disruption on corporate banking strategic planning: A case study of Sterling Bank, Kano.

Background of the Study

Digital disruption refers to the transformative impact of emerging digital technologies that challenge traditional business models. In corporate banking, digital disruption has compelled banks to reassess and realign their strategic planning processes to remain competitive. Sterling Bank, Kano, has experienced significant digital disruption as it integrates new digital channels, automated processes, and innovative fintech solutions into its operations (Ogunleye, 2023). This disruption has necessitated a shift in strategic planning, forcing the bank to adopt agile methodologies, invest in emerging technologies, and reconfigure its business models to better serve corporate clients.

The strategic response to digital disruption includes the adoption of digital transformation initiatives that prioritize innovation, customer-centric service design, and continuous improvement. Sterling Bank has implemented real-time data analytics, AI-driven risk assessments, and cloud-based solutions to support its strategic decision-making. These digital tools enable the bank to identify market trends, forecast customer needs, and rapidly adjust strategies to mitigate risks and capitalize on new opportunities (Ibrahim, 2024). However, digital disruption also brings challenges, such as the need for substantial capital investment, integration difficulties with legacy systems, and resistance from employees accustomed to traditional planning methods (Adeleke, 2025).

This study examines how digital disruption influences the strategic planning processes of Sterling Bank in corporate banking, focusing on the changes required, the benefits realized, and the obstacles that hinder effective strategic realignment. The analysis aims to provide actionable insights into how banks can navigate digital disruption while maintaining strategic coherence and competitive advantage (Chinwe, 2025).

Statement of the Problem

Despite the transformative potential of digital disruption, Sterling Bank, Kano, faces significant challenges in aligning its strategic planning with rapid technological changes. A primary issue is the misalignment between long-standing strategic frameworks and the dynamic, fast-paced nature of digital innovations (Ogunleye, 2023). This disconnect can result in outdated business models that fail to capture emerging opportunities, thereby reducing the bank’s competitive edge.

Moreover, integrating new digital tools into the strategic planning process is hampered by legacy system constraints and high implementation costs. Resistance to change among senior management and operational staff further compounds the problem, leading to delays in strategic adaptation. These challenges not only limit the bank’s ability to effectively respond to digital disruption but also increase operational risks, as strategic planning processes become fragmented and reactive rather than proactive (Ibrahim, 2024). Consequently, there is a critical need to explore the impact of digital disruption on strategic planning in corporate banking and to identify measures that can bridge the gap between traditional strategies and the demands of a digital environment (Adeleke, 2025).

Objectives of the Study

• To assess the impact of digital disruption on strategic planning in corporate banking at Sterling Bank, Kano.

• To identify challenges in integrating digital tools with traditional planning frameworks.

• To propose strategies to enhance agile strategic planning in the face of digital disruption.

Research Questions

• How does digital disruption affect strategic planning in corporate banking at Sterling Bank?

• What challenges hinder the integration of digital technologies with existing strategic frameworks?

• What strategies can improve the alignment of strategic planning with digital innovation?

Research Hypotheses

• H1: Digital disruption significantly influences the strategic planning processes at Sterling Bank.

• H2: Integration challenges between digital tools and traditional frameworks negatively affect strategic alignment.

• H3: Agile strategic planning practices are positively correlated with effective responses to digital disruption.

Scope and Limitations of the Study

The study is limited to the corporate banking division of Sterling Bank in Kano. Limitations include potential biases in strategic planning assessments and access restrictions to internal strategic documents.

Definitions of Terms

• Digital Disruption: The transformative impact of new digital technologies on traditional business models.

• Strategic Planning: The process of defining organizational direction and allocating resources to pursue objectives.

• Agile Methodologies: Flexible, iterative approaches to planning and execution.

• Legacy Systems: Older IT infrastructures that may resist integration with new digital tools.

 

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