DIGITAL TRANSFORMATION LEVEL INDICATORS OF BANKS

Abstract

The article studies the approach to assessing the banking digitalization influenced by economy digitalization, dynamically spread electronic payments, e-commerce, and innovative digital service technologies. Digitalized banking services, widespread online platforms and digital customer communication channels require an approach to assessing the banking digitalization identifying the bank’s competitiveness, strengths and weaknesses strategically. The aim is to develop a banking digitalization indicator system and assessment methods within a complex indicator. To achieve this, the research applied generalization, grouping, systematization to form a grouped indicator system; static, dynamic, structural indicator assessment methods; normalization and integration by arithmetic mean. This approach utilizes the banking digitalization indicators systematically generalized by three groups: digital banking platform indicators; bank’s digital service indicators; indicators of digital communications with the bank’s customers. Each group provides a flexible indicator set to track the changing banking digitalization trends. Outlining the mathematical transformation of indicators into a single integrated indicator determines the use of innovative products and services and substantiates the areas of ensuring competitiveness and improving the bank’s development strategy. While assessing the banking digitalization, this approach grants the following advantages: this analytical tool monitors, analyses, and assesses the banking digitalization trends; banks will realize the strengths and weaknesses of digital tools to ensure the banking market competitiveness; competitive positioning of a bank in the banking service market; analysing, assessing, and positioning improve the bank’s development strategy, relevant technologies, and digital transformation tools. Future research should consider an approach to improving the development of the bank’s marketing strategy utilizing digital technologies.