Global Trends in the Banking Sector Digitalization

Abstract

The article is aimed at identifying global trends in using modern information technologies in the banking sector, which were formed under the influence of digitalization of the economy. Digitalization is one of the main trends in global economy. Digital transformation has become relevant for business in various areas of economic activity, and the banking sector is not any different. The introduction of a bank card is considered to be the initial stage of the banking sector digitalization. At the present stage of development, banks have a wide range of tools to digitalize their activities, from office operations to customer service, to credit portfolio management, and to risk management. Today, the world's leading banks of various ownership forms can create digital currencies. The most widespread digital technologies in the banking sector are: mobile technologies, "big" data, blockchain, "cloud" technologies, artificial intelligence, the Internet of Things. The application of the outlined technologies allows banks to optimize work processes, reduce operating costs, provide high service rate and convenience for customers, and also generate innovations and bring new banking products on the market. Digitalization makes it possible to track the customer base in real time, to form personalized sets of services for consumers, to restructure revenues and manage the bank’s credit risks. The authors conclude that digitalization is a non-alternative way for a modern bank to develop. Digitalization, introduction of information technologies, and the creation of innovative products are the factors determining a bank's competitiveness in the modern market.