TRANSFORMATION OF BANKING SERVICES IN THE CONTEXT OF DIGITALIZATION

The development of the modern world as a whole is no longer imaginable without the use of digital technologies. Digitalization has affected almost all spheres of activity and this is the reality of the modern era. The banking sector is no exception. Despite the significant scientific contribution to the above-mentioned issues, a certain list of issues requires additional coverage. In particular, in our opinion, insufficient attention has been focused on the advantages of the transformation of banking services in the context of digitalization for banks and their clients. The focus of this scientific study is to identify and highlight the main advantages, directions and effects of the transformation of banking services from the introduction of digital technologies. The article is devoted to the study of the processes of digitalization of the banking sector of Ukraine at the present stage. The article highlights the main prerequisites for the active digitalization of the domestic banking system. Attention is paid and characterized to the main digital technologies that are reforming the global banking space, namely artificial intelligence, machine learning, blockchain technologies, and the Internet of Things. The advantages and challenges of the transition of traditional banking institutions to the digital sphere for both the banks themselves and their clients are summarized. The number of bank branches in Ukraine during 2019–2025 is studied and the main patterns in their dynamics are identified. The article also focuses on the business models of banks in the context of the digitalization of banking operations. The final point of the article is to outline future potential and already existing, but not yet very active trends and tendencies in the process of further digitalization of the banking sector of Ukraine.