Bank competition development against the backdrop of digitization

Current global economy development trends make banks to speed up their transfer from traditional business models to financial ecosystems based on modern digital instruments. This suggests modernization of the overall banking supervision system, introduction of new regulatory principles and control methods and adjustment of traditional approaches to a new environment. The study looks into the digital transformation’s negative effects on the level of competition in the banking sector and provides an in-depth analysis of international experience in implementing financial and technological innovations in commercial banks, as well as approaches to evaluating the level of banking competition. The study is aimed at developing the guidelines for upgrading banking oversight and regulation to facilitate organizational and stabilizing effect and bolster confidence in banks as financial intermediaries, as well as proposals on introduction of new mechanisms of neutralizing bank risks amid technological transformation of the Russian financial sector.