Transformation of the banking under the conditions of the digital economy development

Zherdetska Liliia
D.Sc. (Economics), Associate Professor, Head of the Banking Department, Odesa National Economic University, Odesa, Ukraine, E-mail:lzherdetska@gmail.com, ORCID ID: https://orcid.org/0000-0001-5398-868X

Kotsyna Danylo
2nd year master's student of Odesa National Economic, Odesa, Ukraine, E-mail:kotsyna90@gmail.com, ORCID ID:

Kryzhanovskyi Oleksandr
2nd year master's student of Odesa National Economic, Odesa, Ukraine, E-mail:okryzhanovskyi@ukr.net, ORCID ID:

Cite this article:

Zherdetska L., Kotsyna D., Kryzhanovskyi O. (2024)Transformation of the banking under the conditions of the digital economy development. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Transformatsiia bankivskoho biznesu v umovakh rozvytku tsyfrovoi ekonomiky; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 3-4 (316-317), pp. 55-62.

Abstract

Introduction. The current conditions of the development of financial markets are characterized by large-scale changes: digital economy development, the emergence of new cryptocurrencies, financial technologies, business models, forms of agreements, etc. The development of financial technologies, on the one hand, creates additional threats to banks' competitive positions, and on the other hand, creates additional opportunities in customer service. Purpose. Systematization of various aspects of digitalization of banking business on the basis of identifying the place of the banking sector in the digital economy. Results. In the modern conditions of the information and computer technologies development, the so-called digital economy, which is inextricably linked with the use of digital resources, occupies an increasingly large share. Among individual sectors, financial sector occupies a significant place in terms of the development of the digital component. However, there is still no single methodology for the digital economy measuring. To solve this problem, in the study the approach proposed by the IMF was applied to the banking sector of the Ukrainian economy. On this basis, a significant digital component of the banking sector has been established. Despite the fact that non-banking entities of the financial market also carry out separate banking operations, banks maimtain their leading competitive positions. The high market share of banks is also due to the lack of independent financial digital platforms in Ukraine. The development of the digital economy and the banking sector, in particular, was accompanied by the transformation of the results of financial and economic activity of banks. Thus, over the last decade, banks have reduced the network of branches and offices, reduced the share of fixed assets and intangible assets in net assets. However, the costs of maintaining fixed assets and intangible assets increased.Conclusions. So, we can conclude that the development of the digital economy allows banks to reduce the share of non-profitable assets and increase productivity. However, when planning further development, it is worth taking into account competition from other banks, as well as from non-banking financial institutions and new market participants - fintech companies and digital platforms.

Keywords

bank, banking, digital economy, financial technologies, fintech companies.

JEL classification: А100; G100; G210; DOI: https://doi.org/10.32680/2409-9260-2024-3-4-316-317-55-62

UD classification: 336.7

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