Different approaches of change management in financial institutions

Abstract

This paper examines change management practices in financial institutions in Hungary and Kazakhstan, aiming to understand how institutional and cultural contexts influence strategic approaches. Through a comparative case study and 15 semi-structured interviews, the research identifies key drivers of change: regulatory compliance, technological innovation, employee engagement, strategic adaptability, and culture. The study contributes novel insights by applying and extending Kotter’s and ADKAR models to two distinct emerging markets, offering a hybrid framework tailored to transitional economies. EU-regulated banks exhibit structured, compliance-focused approaches that ensure stability, while reform-driven banks adopt agile, consultant-led models that accelerate innovation but introduce alignment risks. The study’s originality lies in its focus on underexplored Central European and Central Asian contexts, offering practical and theoretical implications for managing change in global banking transformation.