Traditional banks have historically been the backbone of Nepal's financial system. There are a number of Class A commercial banks operating in the country, which play an important role in providing credit to the economy and facilitating payments. However, Nepalese banks need to undergo a major modernization to support sustainable economic development and enhance the country’s competitiveness in the global arena. Nepal’s lagging economic growth can be partly attributed to the inefficiency and limited reach of the traditional financial sector. If the financial system, which is the lifeblood of the economy, is inefficient or inaccessible to a significant portion of the population and businesses, it inevitably hinders investment, trade, and innovation. Digital transformation of the banking sector is not just a technology upgrade, but a potential tool to accelerate the country’s overall economic development.