Current Trends in Digitalization of Banking Business in Russia

Currently, digital technologies are being actively implemented in all sectors of the economy, including the banking industry. This process is influenced by various factors that either stimulate or limit its development. The subject of the research is innovative digital developments that can help banks become more efficient and competitive; protect them from risks, and improve the quality of their banking services. The object of the study is digital banking, a promising form of banking service provision. The relevance of this research is due to the rapid digital transformation and the introduction of innovative technologies, which are radically changing the paradigm of customer service and risk management. The purpose of the work is to identify current trends in the digital banking, to systematize the benefits of digital technologies and to identify key areas of banking practice that are affected by them. The study of the development of digital banking business models is based on the methods of chronological cognition and expert assessments. The scientific article is interdisciplinary in nature, based on the fundamental works of leading domestic and foreign economists, as well as analytical materials from the Bank of Russia. The author concludes that banks are conquering new markets by providing mainly remote services and contactless payment options. The scientific novelty of the paper lies in the author’s interpretation of the process of digitalization in the banking industry, highlighting the various stages of its development and providing a comprehensive analysis of Russian digital banking practices. The practical significance lies in the development of recommendations for optimizing the digital transformation of banks, which is useful for financial professionals and developers of digital solutions. A promising area for further research is a more in-depth study of the factors that hinder digitalization and the methods for minimizing them.

1. Matt C., Hess T., Benlian A. Digital transformation strategies. Business & Information Systems Engineering. 2015;57(5):339-343. DOI: 10.1007/s12599-015-0401-5

2. Zimmermann A., Jugel D., Sandkuhl K., et al. Architectural decision management for digital transformation of products and services. Complex Systems Informatics and Modeling Quarterly. 2016;(6):31-53. DOI: 10.7250/csimq.2016-6.03

3. Westerman G., Bonnet D. Revamping your business through digital transformation. MIT Sloan Management Review. 2015;56(3):10-13.

4. Krugman P.R., Obstfeld M. International economics: Theory and policy. 8th ed. Englewood Cliffs, NJ: PrenticeHall; 2008. 712 p.

5. Izmalkov S., Sonin K. Basics of contract theory (Nobel memorial prize in economic sciences 2016 — Oliver Hart and Bengt Holmström). Voprosy ekonomiki. 2017;(1):5-21. (In Russ.). DOI: 10.32609/0042-8736-2017-1-5-21

6. Bernanke B.S. The courage to act: A memoir of a crisis and its aftermath. New York, NY: W.W. Norton & Company; 2015. 624 p.

7. Magomaeva L.R. Banking innovations in the digital economy: Theory and practice. Doct. econ. sci. diss. Vladikavkaz: North Ossetian State University; 2020. 367 p. (In Russ.).

8. Dudin M.N., Shkodinskii S.V., Usmanov D.I. Key trends and regulations of the development of digital business models of banking services in Industry 4.0. Finance: Theory and Practice. 2021;25(5):59-78. DOI: 10.26794/2587- 5671-2021-25-5-59-78

9. Petrov A.A. The digital footprint of man: Pros and cons. Bol’shaya Evraziya: razvitie, bezopasnost’, sotrudnichestvo = Greater Eurasia: Development, Security, Cooperation. 2020;(3-2):529-541. (In Russ.).

10. Pertseva S. Yu. Digital transformation of the financial sector. Innovatsii v menedzhmente = Innovations in Management. 2018;(4):48-53. (In Russ.).

11. Karunakaran S., Gopinathan N. Role of digitalization in rural banking sector in Madurai, India. Finance: Theory and Practice. 2023;27(1):76-90. DOI: 10.26794/2587-5671-2023-27-1-76-90

12. Medvedeva O.E., Tsyvareva O.P. The algorithm of interaction with the consumer in the beauty industry based on the digital footprint in the framework of improving the quality management system. Nauchnyi zhurnal NIU ITMO. Seriya: Ekonomika i ekologicheskii menedzhment = Scientific Journal NRU ITMO. Series: Economics and Environmental Management. 2021;(2):62-72. (In Russ.). DOI: 10.17586/2310-1172-2021-14-2-62-72

13. Nikonets O.E., Popova K.A. Remote banking as an element of the modern bank ecosystem. Vestnik Volzhskogo universiteta im. V.N. Tatishcheva = Vestnik of Volzhsky University named after V.N. Tatischev. 2020;2(1):280-292. (In Russ.).

14. Kuznetsova V.V., Larina O.I. Central banks digital currencies issuance: Development directions and key risks. Finance: Theory and Practice. 2023;27(6):6-16. DOI: 10.26794/2587-5671-2023-27-6-6-16

15. Larina O.I., Akimov O.M. Digital money at the present stage: Key risks and development direction. Finance: Theory and Practice. 2020;24(4):18-30. DOI: 10.26794/2587-5671-2020-24-4-18-30

16. Izofatenko M.V., Nikulina I.E. The history of digitalization of banking in the Russian Federation. Vestnik Altaiskoi akademii ekonomiki i prava = Journal of Altai Academy of Economics and Law. 2023;(10-1):41-47. (In Russ.). DOI: 10.17513/vaael.2989

17. Donetskova O. Yu.Introduction of technologies into the business process of financial intermediaries. Sibirskaya finansovaya shkola = Siberian Financial School. 2023;(2):84-92. (In Russ.). DOI: 10.34020/1993-4386-2023-2-84-92

18. Donetskova O., Sadykova L. Introduction of innovations in the Russian insurance market. Sibirskaya finansovaya shkola = Siberian Financial School. 2025;(1):55-66. (In Russ.). DOI: 10.34020/1993-4386-2025-1-55-66

19. Dudin M.N., Shkodinsky S.V., Usmanov D.I. Digital sovereignty of Russia: Barriers and new development tracks. Problemy rynochnoi ekonomiki = Market Economy Problems. 2021;(2):30-49. (In Russ.). DOI: 10.33051/2500- 2325-2021-2-30-49

20. Dubova S.E., Balalaev I.V. Financial inclusion infrastructure. Finansovye rynki i banki = Financial Markets and Banks. 2023;(9):38-42. (In Russ.).