Digital transformation of the banking sector: Current trends and development vectors

Relevance of the study. The digital transformation of the banking sector is an important condition for ensuring its adaptability and resilience in the face of global economic changes and increased competition. The purpose of the study was to prove that the digital transformation of the Ukrainian banking sector is an inevitable process that opens up new opportunities for the development of financial services, to outline ways to solve the problems of digital adaptation of Ukrainian banking institutions based on an analysis of the current state of their digitalization and identification of key trends and strategic vectors of development in the context of current global challenges. Research methods. The methods of the systematic approach and theoretical and empirical analysis are used, the main methods are: theoretical cognitive approach, logical methods, methods of observation and comparison, empirical methods, etc. Results. The article shows that integration of digital technologies, such as automation of operations, introduction of cloud services and development of open banking, significantly transforms traditional business models of banks. The use of big data analytics helps to improve risk management and improve the quality of financial forecasts, while digital platforms increase the efficiency of customer service. It is noted that the challenges of cybersecurity, ethical data management and regulatory compliance remain relevant barriers to the successful implementation of digital initiatives in the banking sector. It is proved that the integration of innovative approaches with traditional principles contributes to the long-term competitiveness and operational sustainability of banks. Practical value of the study. The results can be used by banking institutions and financial strategists to develop effective approaches to digitalization that increase the reliability and adaptability of banking operations in a dynamic market environment