The Transformation of Traditional Banking Activity in Digital
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1. Introduction
One of the main factors for the growth of the modern economy is the development of
digital technologies in the financial market. Digitalization covers
both separate and
complex sectors, resulting in significant savings of the human resources and all costs
connected with them, which improves competition. Nowadays, the financial system
in general and the banking sector in particular, are developing in accordance with the
modern requirements of the digital economics. Due
to the digital transformation,
business models and concepts for the banking sector’s development are being
improved.
The process of digital transformation is considered as the use of digital technologies
to improve business models, as well as to improve their efficiency.
This process
involves the introduction of innovative technologies on an ongoing basis, which will
lead to a full digital transformation of the entire economy (Ablyazov and Asaul, 2018).
The use of digital technologies improves the ways of interaction between banks,
government and potential customers (Thalassinos and Thalassinos, 2018).
Digital
transformation involves the widespread introduction of modern ways of providing
banking services. The number of bank branches is decreasing,
and many services are
being transferred online, especially when lending or investing funds (Piirainen, 2016).
The innovative development is the main opportunity for sustainable and long-term
growth in the efficiency of banks. Today, digitalization has become a strategic priority
for the banking industry in the world. The driver of the changes taking place in the
banking sector are modern financial technologies (Rupeika-Apoga
et al., 2018).
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