This study addresses the existing gap in the literature by investigating digital banking transformation and exploring the key factors and effective strategies essential for its implementation. The research aims to contribute valuable insights for future research directions. The comprehensive analysis conducted in this study examines the factors and strategies that influence digital banking, providing crucial insights for banks, Fintech companies, and policymakers. Through a systematic review, this study identifies fundamental changes in digital transformation components, including the redefinition of business processes leading to the creation of new business models. Furthermore, an in-depth analysis of factors influencing digital banking adoption by banks reveals both internal and external factors. Internal factors encompass technological infrastructure, investments in technology, and the development of digital banking applications and services. External factors include economic conditions, competition between banks, and government regulations. However, customers remain central to both internal and external factors, with considerations such as awareness, cultural knowledge, and the advantages of digital banking services being integral to quality service provision. Additionally, factors such as risks, security, trust, and user-friendly interfaces are crucial for fostering customer adoption.