Digitalization and its Impact on the Banking Business Process

In recent decades, digitalization has profoundly transformed various sectors, with the banking industry experiencing some of the most significant changes. This chapter explores the rapid development of digital technologies and their substantial impact on banking processes. From the widespread use of the internet and mobile phones to the integration of artificial intelligence (AI) and big data, digitalization has reshaped how banks operate and interact with customers. The chapter delves into the myriad benefits of digitalization, such as enhanced efficiency, reduced operational costs, and improved customer relationships. It also addresses the challenges and risks associated with this transformation, including cybersecurity threats, the need for substantial financial investments, and regulatory concerns. By examining both the advantages and the obstacles, this chapter provides a comprehensive analysis of the ongoing digital revolution in the banking industry, setting the stage for understanding its future trajectory and the evolving landscape of financial services.