TRANSFORMATION OF BANKING SERVICES IN THE DIGITAL ENVIRONMENT: TRENDS AND CHALLENGES

Abstract

The article examines key trends, challenges and prospects for the digital transformation of the banking sector in the context of the global digitization of the financial system. The authors focus on the profound structural changes that are taking place as a result of the introduction of the latest financial technologies, mobile applications, artificial intelligence (AI), blockchain and big data analytics. It is determined that the digitalization of banking activities involves not only technological upgrades, but also a comprehensive restructuring of business models, management approaches and customer strategies. The study uses general scientific methods of analysis, synthesis, generalization and comparison, as well as empirical data from the World Bank, the NBU and leading international consulting companies, which made it possible to form a systematic understanding of the current state of digital transformation in the banking sector. It was found that the main vectors of development of digital banking services are technological innovations, open banking models, increased cybersecurity, the introduction of data analytics and the use of artificial intelligence. It has been proven that digital technologies contribute to improving the efficiency of banks, reducing costs, expanding the range of services and increasing customer focus, but at the same time create new risks–strategic, operational, regulatory and cyber threats. Particular attention is paid to the development of omnichannel platforms that provide a unified customer experience across different digital environments. It has been established that using the SERVQUAL model to assess customer service quality in digital channels can increase customer satisfaction. The paper emphasizes that effective management of digital processes requires the implementation of modern information systems, analytical platforms and the application of economic and mathematical models to measure the level of digital maturity of banks. It is proposed to use integrated indices that combine the parameters of digitalization of operations, level of innovation, customer experience, cyber security and operational efficiency. Particular attention is paid to the use of machine learning to predict the financial stability of banks in the context of digital change. These innovations contribute to increasing customer confidence, transparency of operations and the formation of competitive financial products in national and international markets.