Key Trends and Regulations of the Development of Digital Business Models of Banking Services in industry 4.0

The subject of the research is trends in the implementation of digital technologies in the banking sector. The relevance of the paper is due to the objective processes of global digital intervention of technologies in all spheres of human life and society. The research aims to identify, systematize and generalize key trends and regulations in the development of digital business models of banking services in Industry 4.0. For the first time, the authors identified and systematized modern trends and regulations in the development of digital business models of banking services in Industry 4.0, offered their own conceptual vision of the concept of “digital business model of banking services”. The authors apply general scientific, philosophical, analytical, statistical, problem-chronological and historical- genetic methods, as well as methods of expert assessments. The article summarizes the main stages of the evolution of business models of the banking sector, reveals substantive and methodological differences between traditional remote banking services and digital banking, highlights the main business models for organizing digital banking; provides up-to-date data on the level of development of digital banking in the main geographic zones of the world; shows the dynamics and key areas of investment in the fintech industry in 2014–2019 and provides a critical analysis of their conditions; identifies problematic aspects of the development of digital business models of banking; describes the functionality of the main digital business models of Russian banks with the author’s assessment of their capabilities and examples of their use in Russian practice. The authors conclude that the main drivers of digitalization of the banking sector are stable growth of non-cash payments in the world and in Russia; stable growth of the global digital banking market; the impact of the COVID-19 pandemic on the active demand of consumers of remote financial services; increased competition in the retail banking market; and a significant decrease in margins for traditional banking products. Identification and systematization of trends and regulations in the implementation of digital business models of banking services can form the basis for further analysis of the specifics of digitalization and personalization of digital banking in Industry 4.0 for the sustainable socio- economic development of the country in terms of possible advantages and threats to the security of financial resources and personal data of customers.

In addition, the expansion of the range of digitalization of banking services is due to the trend towards the development of personalized banking. On the one hand, personalization today is a key competitive advantage of a modern bank that relies on meeting the unique needs of its customers. On the other hand, a personified approach in the banking sector is an adequate response to the personal economic, and psychological expectations of consumers of banking products. These expectations are associated, firstly, with an increase in the level of wellbeing of the population (according to the IMF and UN data, incomes are expected to grow by 3.0-10.0% by 2025, depending on the region), secondly, with the expansion of the middle class -the main driver of innovation for individuals (according to WorldDataLab, by 2030, the size of the global middle class will reach 5.3 billion people 4 ), thirdly, with a change in personal motives for organizing financial services based on lifestyle and needs (life-stylebanking). These facts are a breeding ground for the development of digital services for the personalization of banking products, considering the national characteristics of Industry 4.0. 5 All of the above determines the relevance of the topic of this scientific research, since the banking sector is most actively introducing new digital technologies due to the need, on the one hand, to ensure that the costs of conducting banking operations are minimized for both clients and for your own business, and on the other, to improve security, the speed and convenience of such transactions for retail and corporate clients. In addition, in the context of the COVID-19 pandemic, not only the transition to remote forms of service in various spheres of society has intensified, but the problem of the vulnerability of virtual services and services offered by Russian banks has also intensified, in connection with which the task of forming viable digital business models of banking ser vices especially relevant and of practical value. 6 The purpose of the scientific article is to identify, systematize and summarize t h e k e y t r e n d s a n d p a t t e r n s i n t h e implementation of digital business models of banking services in Industry 4.0. It seems that the results of the study can form the basis for further analysis of the specifics of digitalization and personalization of banking products and services in Industry 4.0 in the direction of summarizing data on financial effects for initiating banks, assessing the significance of banking innovations for sustainable socio-economic development of the country with positions of possible benefits and threats to the security of financial resources and personal data of clients.

MateriaLS anD MetHODS
This scientific paper is of an interdisciplinary nature. We applied both general scientific and philosophical methods of cognition, as well as special economic, analytical, and statistical research methods based on them.
To study the process of introducing digital business models in the banking sector, we used problem-chronological and historicalgenetic methods of scientific knowledge, as well as methods of expert assessments.
The study is based on materials from open sources of thematic reviews of the VC.RU consulting agencies, the Skolkovo Research 6 Bank losses due to cybercrime. (29.10.2020 [4], and others in their works pay attention to the problems of introducing banking innovations.
The issues of transforming business models of banks into a digital economy are reflected in the works of Yu. B. Bubnova [ 5 ] , A . P. B e l o u s , S . Yu . Ly a l ' k o v [ 6 ] , S. Yu. Pertseva [7] and others.
F. T. Aleskerov 7 and his colleagues from the Higher School of Economics presented a typology of business models for Russian banks.
At the same time, the issues of the formation and development of digital business models of banking services were poorly studied in domestic and foreign literature, which served as an additional motivation for the authors to study this scientific area in more detail. At the same time, banking services should be regarded as well-established electronic technologies for servicing and supporting customers, for example, online banking, mobile banking, a virtual account in an electronic payment system, online banking services, etc.
It seems that at the beginning of this study, it is important to understand the conceptual apparatus. For this, the author managed to systematize various approaches to the content of the concept of "digital business models of banking ser vices" presented in domestic and foreign literature ( Table 1).
Summarizing the material presented in Table 1, the authors propose their own interpretation of the concept of "digital business model of banking services" -this is a way of digital interaction of a bank with customers, focused on creating new value using the latest digital technologies in a virtual mechanism to create and promote personalized banking products and services. This interpretation summarizes all modern patterns and trends in the development of digital banking both in Russia and abroad.
I t s h o u l d b e e m p h a s i z e d t h a t a n important feature of the banking system in terms of identifying the stages of its integration into the digital economy is the inalienability of digital technologies in banking sector processes. Thus, the first mention of "Industry 4.0" as an evolutionary stage of the world economy belongs to the American computer scientist N. Negroponte, but the genesis of digitalization should be sought much earlier [14].
Acco r d i n g t o I . A . S e d y k h , t h e f i r s t successful example of digitalization of banking services was the creation of a stable operating ATM of Barclays Bank in London in 1969, which laid the foundation for the development of a new segment of the banking market -bank card products, and in 1970 Bank Americard was issued in the USA, which later transformed into international system Visa International [15].
The second stage is considered to be the period from 1980 to 2000. The "client-bank" methodology of remote banking services was formed at this stage, which is the basis of modern digital solutions and services.
The third stage covers the period from 2001 to 2010 when there was an active filling of the previously created client-banking platform with various services and products [16].
From 2011 to the present, the era of an open banking system has begun, which is gradually forming large-scale digital spaces with the involvement of an increasing number of representatives of the nonfinancial sector within the framework of thematic partnerships: businesses in FMCG, HoReCa, airlines, taxis (the most common examples), which most often are the sphere of interests of leading banks [17].
The COVID-19 outbreak in 2019-2020 became one of the most active catalysts in the entire history of the formation of remote banking services and, like spring, rapidly pushed the development of banking services, forcing to rethink traditional strategies and models of communication with customers. It should be noted that at present, the effect of a sharp start is still preserved, and in the next 2-3 years it will act as one of the key drivers of the intellectual development of digital banking in the world and in Russia.
Critical analysis of scientific and applied research of such foreign scientists as R. Amit, C. Zott [8], C. Burmeister, D. Lüttgens [9], J. Björkdahl, M. Holmen [18], streamline the development and implementation of innovations in the business models of the banking sector date back to the 1970s. In general, the evolution of the stages of transformation of business models in the banking sector can be represented as follows ( Table 2). Table 2 shows that the transition from a physical to a digital business model took place in a fairly short period of time, and recent years have demonstrated literally rapid development of the banking sector in the direction of digital optimization and personalization of virtual bank-client interaction.

reSuLtS anD DiScuSSiOn
T h e key s i g n a l fo r t h e r evo l u t i o n a r y transformation by banks of existing business models for organizing and promoting banking services for retail and corporate clients was the adoption in September 2015 by the government regulator of the UK banking system of an initiative to switch to the neW BanKinG tecHnOLOGieS      Independently of the UK, in January 2016, the EU payment directive PSD 2 was adopted, which provided the client with the right to transfer the rights to manage financial transactions to third parties based on the open API standard [15, p. 22-23].

neW BanKinG tecHnOLOGieS
These two events became a bifurcation point in the development of banking services: everything that was in force before the adoption of the open API standard is called traditional remote banking, and everything that was later is called digital banking. Table 3 presents substantive and methodological differences between traditional remote banking and digital banking in more detail.
The information summarized in Table 3 allows us to conclude that digital banking is a qualitatively new technical and functional add-on, which is a free designer for the formation of unique financial marketplaces, considering the needs of a particular retail client or corporate business needs.
The trends analysis of digitalization in the banking sector allowed us to identify three main business models for organizing digital banking that are currently used in world practice: Anglo-American, European and Russian. A more detailed description of each of them is given in Table 4.
It is noteworthy that the patterns of digital banking development are directly related to the concept of Fintech -a market segment that combines pure financial services and high technologies into original products for implementation in virtual reality without reference to a specific physical location of the bank. This means that it is fair to analyze the development of new digital business models for the sale of banking products precisely from the position of the Fintech market [24].
To assess the scale of the development of digital banking as a key product of the Fintech market, let us present the dynamics of its penetration into the banking systems of the main geographic zones of the world (Fig. 1).
The Fig. 1 data show that the UK was the most developed geographic center of digital banking in 2019-71.0% of all financial transactions in the country were carried out through digital banking mechanisms. The Asian region (Singapore and Hong Kong) ranked second -67.0% each, third -Australia -58.0%. It is interesting to note that in the United States, despite the highest level of development of digital technologies, the share of digital banking was only 46.0%. 9 Based on the data of the E&YGlobal Fin Tech Adoption Index-2019, we will consider the most promising banking services for digitalization (the rating is based on the volume of transactions made by customers) (Fig. 2).
According to Fig. 2, we can conclude that in 2015-2019 the main development was received by the least regulated instruments of banking services: P2P, P2B money transfers -75.0%, in second place -investments and savings -48.0%, in third place -services for household budgeting and planning -34.0%. The least widespread are complex products with a high level of risk of losses for banks or non-financial companies: insurance -29%, borrowing -27%.     To understand the development trends of the global Fintech industr y market, let us consider the general dynamics of investments in this segment of the financial market and, in particular, key areas for 2014-2019 (data are available for the 1st half of the year) ( Table 5).
According to Table 5 data, the key place in the object-thematic direction of investment was taken by cybersecurity -on average, this area accounted for US $ 123.5 billion per year (88.3% of the total investment), in second place -insurance investment -US $ 6.3 billion per year (4.6%), in third placeinvestments in digital solutions in the field of investment management -US $ 3.   and real estate (in the world there are at least 3 different models of organization of mortgage lending and more than 20 different laws on mortgages) [25]. In Russia, digital banking business models are developing rather unevenly and contradictory. At the same time, experts note the following key trends:

General dynamics and key areas of investment in the fintech industry in 2014-2019 (I and II quarters)
• the active development of Internet traffic in the Russian Federation has become a key driver of growth in the Fintech market: according to the All-Russian Omnibus GfK, by the beginning of 2019 the number of Internet users aged 16+ amounted to 90 million people or 75% of the total adult population of the country. 11 The share of financial organizations using cloud services (as an integral element of the digital business 11 GfK Research: Internet Penetration in Russia (15.01.2019). URL: https://www.gfk.com/ru/press/issledovanie-gfk-proniknovenie-interneta-v-rossii (accessed on 19.01.2021). model of a banking organization) amounted to 33.8% at the beginning of 2019 [26]; • stable growth of e-commerce and services in e-commerce, which is objectively impossible without the corresponding development of P2B and P2P bank transfer services. At the same time, the share of entrepreneurial organizations using hightech services for doing business online amounted to 30.1% at the beginning of 2019 [10,15]; • the index of digitalization and the intensity of the use of digital technologies in the financial sector at the beginning of 2019 amounted to 40.0%, which also significantly hinders the development of digital business models of banking since only the largest players in the banking sector allow the implementation of large infrastructure projects for the transition to full-fledged digital banking.  neW BanKinG tecHnOLOGieS Table 7 Main business models of digital banking implementation in the russian federation Business model Business model description

Digital banking brand
Types of banks using a business model Classic banks with a rigid vertical architecture and a large-scale physical presence in the market.

Drivers of digitalization:
-a large client base of various ages, lifestyles, social and professional statuses; -the need to maintain a loyal attitude of customers to the existing line of banking products, while at the same time the impossibility and (or) reluctance of management to revolutionize the product portfolio; -large-scale infrastructure and proprietary software systems that require maintenance costs.

Features of the business model
Old-school banks, due to the reluctance and (or) impossibility of large-scale changes in the portfolio of banking products, create branded versions based on traditional products with options available only to certain categories of customers or under certain conditions (for example, placing a deposit in the amount of at least US $ 100 thousand). Examples of banks: Tochka, Delobank, Rocket-Bank

Bank with digital channels
Types of banks using a business model Banks create separate divisions or subsidiaries that operate on the basis of a parent license and implement separate, as a rule, specialized digital products or services.

Drivers of digitalization:
-the need to diversify the banking portfolio of service products; -decrease in marginality for regular banking products; -the need to consolidate or expand the client base (usually the market for such banks is limited to a specific region or even a city).

Features of the business model
The bank's management finances and forms a turnkey new structural business unit that provides specialized services or sells assistance products under the parent license. In the future, a procedure for separating a business structure into an independent Fintech business or carrying out a buyback procedure (the subsidiary buys control over the parent bank) is possible. Examples of banks: Sphere, Prosto Bank, Megafon Bank

Types of banks using a business model
Medium and large banks that are developing a long-term strategy for digitalizing business processes by reforming the parent business model based on a pilot project -a digital branch, which is actually a twin of the bank, but whose products and services are based on the digital economy. In the future, this experience can be extended to the entire bank, or the parent bank can be liquidated as unprofitable.

Drivers of digitalization:
-increasing the competitive position in the rating of banks; -participation in the management of a promising startup project; -testing the possibilities of restructuring the business model on the example of a separate branch.

Features of the business model
Features of the business model. As part of the parent business model, a separate branch, or a new branch created from scratch, is organized according to the latest achievements of Industry 4.0. The bank's management evaluates the performance of the branch, and in case of satisfactory performance, the model is scaled to the entire bank. Examples of banks: Elba Bank, TalkBank.
The dynamics of indicators of driver factors in the formation of digital business models of banking in Russia for 2015-2019 are summarized in Table 6.
Compared to the indicators of the leading countries, the Russian digital banking market is distinguished by the concentration of technological competencies directly in the banking system, or rather in a number of super-large banks from the Big Three and a number of innovative and active banks. According to experts, this is due either to the weakness of Fintech projects or to their absence in statistical accounting [15].
Our analysis allows us to conclude that Russian banks are currently implementing digital banking in the following business models ( Table 7).
Another trend in the implementation of digital business models of banking products in Russia is the uneven distribution of digital services: for example, according to KPMG, 86% of Russian banks in the top 20 have their own programs for the development of digital technologies, and there is no information on the rest of the banks. It can be concluded that less than 20 domestic banks are the driving force behind digitalization, and out of the top 20, only 3 allocate regular budgets to finance projects in the field of digitalization of banking services and products (Fig. 3). Fig. 3 shows that Sberbank is leading in the digital development of the banking sector -on average, its annual budget fo r f i n a n c i n g p r o j e ct s i n t h e f i e l d o f digitalization of banking ser vices and products was 91.4 billion rubles in 2014-2018 (for full years). VTB Bank is in second place -9.6 billion rubles, Rosselkhozbank is in third place -4.4 billion rubles.

Completely digital bank
Types of banks using a business model Large and super-large banks, which, as part of the restructuring strategy, decided to completely reformat the business model of organizing banking services, or were initially distinguished by the maximum interest in innovative solutions.

Drivers of digitalization:
-strengthening the position of market leadership in the banking services market; -obtaining unique competitive and technological advantages that can be used for banking expansion in other countries; -increasing the credibility and business reputation of the bank as a market expert in the field of innovations; -participation of the bank in complex non-standard projects and government programs requiring the development of innovative tools.

Features of the business model
Banks with such a model are digital twins of real banks with a request to form a banking ecosystem by involving non-financial market agents in the orbit of their influence and forming partnership agreements with them on a joint work strategy.

Examples of banks: Sberbank, Bank 131, Tinkoff Bank
Source: compiled by the authors based on data [24,26,27,33]. neW BanKinG tecHnOLOGieS but in general, they can be structured into the following groups: 1. The de facto standard -the bank d eve l o p s n o r m s a n d c r i t e r i a fo r t h e implementation of a banking product, which are mandatory for all customers [27,28]. The innovativeness and personification of such a model, as a rule, is low and limited by the framework of the legislation. These include, for example, money transfer instruments: • U-Money (formerly Yandex.Money) has been successfully integrated into the system of the Unified and Regional Portal of State and Municipal Services, but the possibility of forming an individual set of services is limited by the functionality of partner portals; • the practice of transfers by phone number both between the accounts of one client and different clients, including abroad: from June 29, 2020, the Mir payment system launched cross-border transfers to cards of national payment systems of the CIS countries, which imposes restrictions on transfers to bank cards of local payment systems; • t h e u s e o f Q R c o d e s f o r m a k i n g payments in the e-commerce system (such a service is provided by TalkBank in the format of the "Paylastic.me" product). The convenience of this product is encrypted storage of data about the user of the bank account and increased security of the money transfer operation, but its functionality depends on the beneficiary of the payment and its technical equipment [32].
2. Switch -development of individual and digital solutions based on proprietary technologies and infrastructure [29]. Thus, Tinkoff Bank offers the client to build their own banking platform, considering the age, needs, professional status of clients.
3. Pyramid of products -providing customers with the opportunity to create their portfolio of products or services from independent digital blocks based on the use of smart contracts [30].  Currently, such a model is available only for corporate clients of Sberbank, VTB Bank, and Rosselkhozbank when carrying out factoring and leasing operations, as well as when receiving subsidies for a farm. As part of the corporate cabinet, the client collects a diagram of connections between business partners, describes their functions, and determines financial flows, then this model is agreed with all participants and, with their common consent, a chain of smart contracts is created, within which financial transactions. 4. Blockbuster model -a high-tech company brings together, within a certain project or platform, various business agents from Fintech, physical business, and IT to create a cross-industry product (for example, a remote fare payment system, video surveillance system, and perimeter security, including "smart home", "smart factory" systems from CELENO, Euro Mobile, Wo Master) [27,29]. 5. Customization model -platforms for social engineering and implementation of systems of invisible indicators to ensure the personal and public safety of large industrial, transport projects of corporate clients [29,30]. Solutions are developed exclusively individually for the requests of specific projects, for example: • a r t i f i c i a l i n t e l l i g e n c e s y s t e m s for assessing the risk of fraud in the implementation of multilateral investment projects; • predictive analytics systems for online tariff adjustment for toll motorways, for example, Western High-Speed Diameter in St. Petersburg, considering the peculiarities of the user's social status, for example, disability; • systems for blocking card accounts when a client visits prohibited or restricted places to visit, for example, a casino; • "invisible payments" -VisionLab offers the installation of a special chip in electric cars linked to the owner's bank account, which will allow him to remotely pay for charging the car using a bank card. This solution is relevant to ensure the safety of both the owner and the operator of gas stations in areas with dense development.
It should be noted that there are very few independent Fintech projects with a fullcycle digital personalization business model in the country, although experts note that, according to various estimates, the number of potential applicants for the status of digital banks among Fintech companies ranges from 200 to 300. However, there is not a single unicorn startup in Russia yet, although the neobank segment is actively growing (for example, Tinkoff Bank is a fullfledged online bank with multifunctional digital services without a network of its own branches). 13 As for traditional banks, the most prepared for digitalization and integration of financial technologies are: Tinkoff Bank, Sberbank, Alfa-Bank, Raiffeisenbank, AK Bars, Rosbank, VTB Bank, Russian Standard Bank, Bank Saint Petersburg, and Uralsib Bank [24,31].

cOncLuSiOnS
The processes of digitalization of the economy are rapidly penetrating all aspects of the life of society and the socio-economic system, changing both the mental attitude to electronic and virtual technologies that have entered our reality and the purely pragmatic perception, due to the driving forces of competitiveness, optimization, and comfort. This is directly related to the banking sector. The result is the transformation of services, infrastructure, mobile and electronic technologies.
Despite a significant amount of research by domestic and foreign authors devoted to the digital transformation of banks, the introduction of new banking technologies, the formation, and development of modern banking infrastructure, the development of digital business models of banking services have not been deeply studied.
In this regard, the value of this scientific study lies in the fact that the authors for the first time identified and systematized m o d e r n t r e n d s a n d p a t t e r n s i n t h e development of digital business models of banking services in Industry 4.0. Based on the latest scientific works of Russian and foreign scientists, this study proposes its own conceptual vision of the concept of "digital business model of banking services", which is distinguished by originality and depth of presentation of the features of new electronic interaction technologies between the bank and customers.
The authors have summarized the main stages of the evolution of business models of the banking sector, identified substantive and methodological differences between traditional remote and digital banking, identified the main business models for organizing digital banking.
The article presents relevant data on the level of development of digital banking in the main geographic areas of the world, the dynamics of investments, and key areas of investment in the Fintech industry in 2014-2019 and a critical analysis of its condition is given. In addition, the authors identified problematic aspects of the development of digital business models of banking, as well as described the functionality of the main digital business models of Russian banks with the author's assessment of their capabilities and examples of their use in Russia.
T h e a r t i c l e m a k e s a s i g n i f i c a n t theoretical and practical contribution to the generalization and systematization of the processes of digitalization of the banking sector in Russia and the development of promising business models of banking s e r v i ce s i n I n d u s t r y 4 . 0 , t a k i n g i n t o account the national goals and objectives of sustainable development.
We b e l i e v e t h a t i d e n t i f y i n g a n d systematizing trends and patterns in the implementation of digital business models of banking services can form the basis for further analysis of the specifics of digitalization and personalization of digital banking in Industr y 4.0 in the context of summarizing data on financial effects for initiating banks, updating the significance of innovative digital services and products for the sustainable socioeconomic development of the country in terms of possible advantages and threats to the security of financial resources and personal data of customers.

acKnOWLeDGMent
The article was written within the framework of the state assignment of the Market Economy Institute of the Russian Academy of Sciences, the topic of the research is "Institutional transformation of economic security in solving socio-economic problems of sustainable development of the national economy of Russia". Market Economy Institute of the Russian Academy of Sciences, Moscow, Russia.