Digital Strategy of Development in Transformation of Banking Business

Abstract

In modern business conditions, digital transformation is no longer a matter of the future. We are
increasingly witnessing the rapid development and breakthrough of advanced technologies, such as Hybrid Cloud, AI,
Intelligent Applications and Devices, Virtual and Extended Reality (AR), API Platform, Robotic Process Automation
(RPA), Blockchain, and similarly. It is only a matter of time when digital disruption will transform all business
activities, and following this trend, banking also faces the challenges of digital transformation, which requires urgent
action and quick adaptation to the new conditions of the so-called. open banking. The subject of this paper is the
digital development strategy in the transformation of banking operations, which is reflected in the fact that each bank
is considering how to adapt and which strategic approach to apply, to meet new requirements and remain competitive
on the market with new players, including of course: budget, general business strategy, security, compliance with
regulations, change of business culture and the atmosphere of the bank. Consequently, digital banking should be agile
and incorporated into every single aspect of life in the digital era, as only a bank led by the IT director with the
involvement of employees who are encouraged to implement advanced technologies and a digital way of thinking
among clients, with a solid digital development strategy and reliable IT partners ie. fintech company is already on the
road to success. The research paper explains: Does banking become #banktech? digitization of banking as a long-term
development strategy with new challenges; the level of maturity of digital banking in the EMEA region and in our
country; the basic prerequisites for the development strategy for successful digital transformation of the banking
sector, related to: omnichannel experience and new strategy towards clients, new players on the market in industry 4.0,
new regulation and administrative organization of the state, as well as the new role of the bank manager in product
innovations, future forecasts, decision-making responsibilities, risk assessment, protection of creditors and
shareholders interests and personalized relationship with clients. Also, the paper emphasizes the importance and role
of third parties, ie, fintech company in the transformation of the banking sector due to the implementation of the PSD2
Directive and the application of new standards in the region and in our country. The goal of the research should
provide answers to the questions: whether the digital development strategy will affect the speed, innovation and
flexibility of the bank's organization in terms of creating a new bank that is innovative, agile and adaptable, which
operates as an IT startup and constantly introduces new services, to speed up and simplify processes, changes in
market rhythms and eliminate financial and non-financial risks on time, with the implementation of advanced
technologies; as well as to show the direction of the movement of the transformation of the banking sector from
digitization, to so-called. Open Banking and Beyond Banking by creating: digital leaders, digital smart followers,
digital adopters and those who are late in digitizing their business models and services. The results of the survey show
that banks will have to find ways to utilize the resources that provide the ecosystem of the banking industry itself,
connecting with partners from different spheres or third parties, rather than performing independently, even isolated,
and if they succeed in building good relationships, develop strategies that are in line with the new circumstances, the
change will be successful and cost-effective. In order to obtain the results during the research, statistical methods,
method of analysis of financial and other bank reports, as well as surveys and interviews with business functions
managers and IT sectors in our banks were used, and further research will be directed more towards the use of robots
in banking and the development of the so-called. Beyond banking.