The impact of digitalization and financial technologies on the transformation of traditional banking services

Abstract

The purpose of this article is to study the impact of digitalization and financial technologies (fintech) on the transformation of traditional banking services. The intensive development of technology leads to the transformation of the banking industry around the world, which requires an in-depth analysis of the changes taking place. These changes are based on innovative processes based on the digitalization of business models and the introduction of new financial and technological solutions. In this work, an integrated approach is used, including an analysis of the scientific literature on the topic, as well as an empirical study based on examples of practical application of fintech solutions in banking. The IMRAD model (introduction, methods, results, discussion) is used as the main analysis tool. The collected data made it possible to assess the role of digital innovations in various segments of banking services. The study showed that digitalization and fintech technologies have a significant impact on the work of banks. The main changes are related to the automation of processes, the popularization of mobile banking applications, the development of artificial intelligence in the field of customer service and the improvement of transaction security. The analysis of practical cases showed that thanks to the introduction of fintech solutions, banks reduce costs, increase the speed of customer service and provide more personalized services. Despite the obvious advantages associated with the use of fintech technologies, the need to regulate and control new processes remains an important aspect. The transformation of the financial industry also generates a number of risks, such as cyber threats, the need to adapt to new legislative norms and possible job cuts in the banking sector. As a result, digitalization and fintech technologies are the main driving forces transforming traditional banking services, offering new opportunities to improve efficiency and customer satisfaction, but also requiring new approaches in regulation and risk management.