Digital Transformation Of The Banking Sector

The article analyzes the problems of digitalization of the banking sector, assesses the impact of financial technologies on the activities of commercial banks, determines the deterrent factors for the development of financial technologies in the banking sector and possible ways to overcome them, and reviews the development of the banking sector. The purpose of the research: identification of the dominant trends in the transformation of the banking sector under the impact of financial technologies, development of theoretical and practical recommendations aimed at activating and stimulating the accelerated introduction of innovative banking products and services. As a result of the research, FinTech revealed trends in the financial market. FinTech segments are identified, in which banks lose to their competitors. It is determined that financial technologies pose a threat to banking organizations, in fact depriving them of monopoly power in the field of credit and ensuring monetary circulation. The main competitors, both for banks and for financial companies, are Big-tech companies. The possibility of merging FinTech companies with banks to improve the competitiveness of the banking sector is considered. It is concluded that the main threats for banks from the companies of the financial technology segment are increasing pressure on profitability and loss of market share. The key to successful development of commercial banks is the proper goal setting and a thought-out strategy of digital transformation. The driver of the transformation of the traditional model of financial services in Russia will be the development of the regulatory and legal environment.