The Impact of Digital Technologies on the Efficiency of Banking

Abstract

This article reveals the impact of financial technologies on the development of the banking sector. The purpose of the study is to identify key financial technologies in the banking sector, as well as the causes and prerequisites for the development of financial technologies in the banking sector of Kazakhstan. For this purpose, the essence of the concept of financial technologies and the definition of this term are considered. In the course of the study, a comprehensive analysis was carried out, which provides both quantitative and qualitative characteristics of the development of digital technologies and their impact on the development of the banking sector. The tasks set in the article were solved by analyzing the structure and dynamics, and methods of financial analysis. In the course of the study, a point-index method was used. To assess the penetration of digital technologies into banking, data from Kaspi.kz from 2021 to 2022 was used. A panel approach was also used, which allowed for analyzing data on various banks. As a result of our research, a conclusion has been made on the areas of banking activity that can first of all be replaced by fintech startups. These are consumer finance, microloans, and payment services. It is determined that a number of commercial banks can be transformed into fintech companies. We declare that no matter what institutional forms the development of new financial technologies takes, it is inevitable in any case, and the relatively near future will already show their content and configuration.