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ИД «Финансы и кредит»






Finance and Credit

Digitalization in banking: All against all?

Vol. 28, Iss. 5, MAY 2022

PDF  Article PDF Version

Received: 3 March 2022

Received in revised form: 17 March 2022

Accepted: 31 March 2022

Available online: 30 May 2022

Subject Heading: Banking

JEL Classification: G21, G23

Pages: 1027–1057


Vladimir D. SMIRNOV Financial University under Government of Russian Federation, Moscow, Russian Federation


Subject. This article examines the impact of banking transactions by online banks and non-banking organizations using new digital technologies on the business of traditional banks.
Objectives. The article aims to identify the customer and operating segments of the traditional credit institutions' activities, which are targeted by online banks and non-banking organizations, and determine the level of threat to the business of traditional banks from these organizations.
Methods. For the study, I used the methods of analysis and synthesis, comparative analysis, and the logical and systems approaches.
Results. The article shows that the vast majority of online banks operate in narrow customer and operating niches. FinTech and large technology companies use some banking operations as a tool to promote sales of their core business products.
Conclusions and Relevance. Banking operations conducted by online banks, FinTech and large technology companies do not pose a critical threat to traditional banks, but they force traditional banks, along with changing customer preferences, to actively introduce digitalization into their activities to increase their price and product competitiveness in relation to digital competitors. The results of the study can be used by financial market participants, public authorities, as well as research and educational organizations in the analysis of the directions of development of the banking industry and the regulation of credit and settlement operations of non-banking organizations.

Keywords: banking operations, digitalization, core business, efficiency


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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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