Importance The article discusses causes and consequences of a significant reduction in the number of branches of the banking network, which during two recent years has decreased by 15%. Objectives The main purpose of the study is to describe the current state and development prospects for digital services in the banking sphere. Methods We applied methods of scientific and information base analysis, synthesis of obtained data into theoretical conclusions and practical recommendations. Scientific works of domestic and foreign scholars on the theory and practice of economic and financial security form the methodological and theoretical basis of the research. Results The introduction of Internet banking serves as the most significant tool to ensure stability of banking operations, increase their efficiency and competitiveness. It is unprofitable for banks to maintain a large branch network and they are cutting down the number of branches not only in Russia but also in the USA, Europe and Asia. Conclusions and Relevance The use of Internet banking leads to reduction in operating costs of commercial banks and the development of banking services can be considered as the main reason for cutting down the number of branches.
Keywords: bank branch, efficiency, online banking, Internet banking, banking mobile application
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