THE IMPACT OF DIGITALIZATION ON THE COMPETITIVENESS MANAGEMENT OF UKRAINIAN BANKS

Abstract

This article analyzes current trends in the digital transformation of the banking sector in Ukraine and globally. To this end, the key aspects of digitalization of banking activities are considered in the work using the methods of analytical comparison and graphical representation. These aspects include the development of internet and mobile banking, the implementation of artificial intelligence, optimization of the organizational structure of banks, cooperation with FinTech companies, and others. The dynamics of the main financial performance indicators of Ukrainian banks in the context of digital transformation are analyzed, and a comparative analysis of the penetration level of digital banking services in Ukraine and European countries is carried out. The influence of digitalization on managing the competitiveness of banks was analyzed. It has been proven that the impact of digitalization on the competitiveness management of Ukrainian banks is multifaceted and significant. Digitalization enables banks to collect and analyze customer data, leading to better-targeted products and services. Advanced analytics improve risk assessment and management, allowing banks to make informed lending decisions. The rise of FinTech companies offering innovative financial solutions is forcing traditional banks to improve their digital offerings, which increases their competitiveness. Digital platforms allow Ukrainian banks to compete not only locally but also in international markets, broadening their customer base. Traditional banks are increasingly collaborating with FinTech companies to leverage their technological expertise and innovative solutions. Digitalization is reshaping the banking landscape in Ukraine, driving competitiveness by enhancing customer experience, improving operational efficiency, and fostering innovation. However, banks must navigate challenges such as cybersecurity threats and the need for regulatory compliance while ensuring that they do not alienate less tech-savvy customers. As the sector continues to evolve, those banks that effectively embrace digital transformation will likely emerge as leaders in the competitive market.