Banking activity in the conditions of economy degitalization

Akopian Daryna
PhD student, Sumy State University, Sumy,, E-mail: d.akopian@biem.sumdu.edu.ua, ORCID ID: https://orcid.org/0000-0001-8389-7535

Cite this article:

Akopian D. (2022) Banking activity in the conditions of economy degitalization. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Diyalnist bankiv v umovah cifrovizaciyi ekonomiki; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 8 (297), pp. 48-56.

Abstract

The reason for the digitalization of banking is the change in the economic environment of financial institutions caused by the rapid development and introduction of information technologies. The purpose of the study is analysis of the economy digitalization impact on banking. The study dealed with systematic approach, generalization, statistical analysis, graphic method, expert estimates. The essence of digitalization concept, its purpose and ways of implementation are considered. Digitalization in banking is the process of implementing innovative technological solutions in any sphere of banking activity in order to increase the efficiency of banking and maintain a competitive position on the market. This will help banks increase their competitiveness and profitability, as well as expand their customer base. The main prerequisites contributing to the implementation of digitalization in the banking sector are highlighted. The result of the study is the determination of the active digitization consequences for the financial and banking sector, such as an increase in the volume of non-cash transactions using payment cards and their structure by types, a decrease in the number of structural divisions of banks, and an increase in competition in the banking sector due to the appearance of new participants. The best examples in the essay are the new participants of the financial markets - BigTech, neobanks and FinTech - which can act as competitors or partners for banks. The main point is the cooperation between the banks and FinTech startups is mutually beneficial: the examples of such cooperation in Ukraine are discussed in the article. Our investigation shows that the digital transformation of the banking business is an objective necessity for maintaining competitiveness in the era of information technology. The practical significance of the obtained results lies in the need to take into account the outlined trends in the development of the financial sphere by the banks and the prospects for cooperation with FinTech companies.

Keywords

bank, digitalization of banking activity, digitization, digital transformation, FinTech companies.

JEL classification: G200, G210; DOI: 10.32680/2409-9260-2022-8-297-48-56

UD classification: 336.71

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