DIGITAL TRANSFORMATION IN THE BANKING SYSTEM: THE IMPACT OF MODERN TECHNOLOGIES AND INNOVATIONS

This study explores the process of digital transformation in the banking system, focusing on the impact of modern technologies and innovative solutions on banking performance and customer experience. In the era of rapid digitalization, commercial banks are increasingly adopting advanced technologies such as mobile banking, artificial intelligence, big data analytics, and blockchain systems to remain competitive and efficient. The research is based on the case of “Business Development Bank” JSCB, examining how digital tools and strategies have been implemented to improve operational efficiency, service quality, and financial inclusion. The study aims to analyze the benefits and challenges associated with digital transformation in the banking sector. The findings indicate that digital innovation significantly enhances customer satisfaction, reduces operational costs, and increases accessibility to financial services. However, issues such as cybersecurity risks, technological infrastructure, and staff adaptation remain critical challenges. The study emphasizes the importance of strategic planning and continuous technological investment for sustainable development in the banking sector.