Abstract

Digital Transformation (DT) presents both opportunities and challenges for corporate governance. This literature review examines whether boards of directors in New Zealand’s financial firms are equipped to navigate the wave of digital transformation. It synthesizes current research on the evolving concept of DT, the strategic outcomes and risks associated with DT initiatives, and the importance of board-level digital competence in guiding successful transformations. The review highlights that organizations with digitally savvy boards tend to achieve better performance and resilience, yet many boards, especially in New Zealand’s financial sector, lack sufficient digital expertise. This gap raises concerns about oversight of technology-driven initiatives and risk management. By exploring theoretical frameworks (agency, stewardship, and upper echelons) and comparing international practices, the review underscores the need to integrate digital literacy and experience into board capabilities. We conclude that while awareness of DT’s importance is growing, New Zealand boards remain in early stages of readiness. Strengthening board digital competence is essential for aligning digital initiatives with strategy, enhancing innovation, and mitigating emerging risks in the financial sector.

Keywords:
Digital Transformation, Corporate Governance, Board of Directors, Digital Expertise, Financial Sector, New Zealand.

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