THE IMPACT OF THE 4TH INDUSTRIAL REVOLUTION ON THE DEVELOPMENT OF THE BANKING SYSTEM: CHALLENGES AND PROSPECTS
Abstract
The article examines the impact of the fourth industrial revolution (Industry 4.0) on the development of the banking system. It is argued that Industry 4.0 is a deep integration of digital, physical and biotechnological innovations that radically transform all spheres of social life, including the banking sector. Industry 4.0 actively stimulates the creation of new innovative financial products and services that change traditional approaches to banking. The analysis of statistics for 2023-2024 shows a steady increase in the number of online banking users worldwide. The integration of innovative technologies, such as artificial intelligence, machine learning, online and mobile banking, blockchain, and the Internet of Things, helps to increase operational efficiency, individualize services, strengthen cybersecurity, and expand access to financial services and improve financial literacy among the population. Regardless of the format of cooperation between banks and fintech companies, the COVID-19 pandemic has clearly demonstrated that digital transformation is the most effective way for banks to remain competitive in a rapidly changing environment. In the new reality, customer expectations are changing: there is a growing demand for contactless payments, mobile applications, online consultations, intelligent user support, and flexible products that take into account individual financial needs. Banks that failed to quickly adapt to these requirements were losing market share to more flexible and technologically advanced fintech companies and non-banks. This evolution indicates the emergence of a new paradigm for banking institutions in the context of global digital transformation. The study analyzes the key challenges that accompany the implementation of Industry 4.0 technologies in the banking sector. Prospects for the development of the banking system in the context of digital transformation are outlined. It is concluded that Industry 4.0 technologies radically change the traditional model of the banking system, transforming it into an integrated digital ecosystem in the context of a new technological paradigm.
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González Carrasco I. et al. (2019). Automatic detection of relationships between banking operations using machine learning. Information Sciences, Vol. 485, 319–346. DOI:10.1016/j.ins.2019.02.030
Banking today: risk management with AI. (2018). Ginimachine. Available at: https://ginimachine.com/blog/banking-today-risk-management-with-ai/
Burmagina K. (2025). AI usage statistics: How AI is transforming everyday life. Available at: https://elfsight.com/blog/ai-usage-statistics/
Artificial Intelligence in banking trends in USA. (2025). Available at: https://nuvento.com/blog/artificial-intelligence-in-banking-trends-in-usa/
Artificial Intelligence (AI) In Banking Market Forecasts 2025–2030: Growth Opportunities, Challenges, Regulatory Framework, Customer Behaviour and Trend Analysis. (2025). GlobeNewswire. Available at: https://www.globenewswire.com/news-release/2025/01/10/3007462/0/en/Artificial-Intelligence-AI-In-Banking-Market-Forecasts-2025-2030-Growth-Opportunities-Challenges-Regulatory-Framework-Customer-Behaviour-and-Trend-Analysis.html
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