STRATEGIES TO ENSURE THE COMPETITIVENESS OF BANKS

Аннотация

This article explores strategies that banks can adopt to maintain and enhance their competitiveness in a rapidly evolving financial landscape. It examines the impact of digital transformation, customer-centric approaches, regulatory compliance, and innovative financial products. The article incorporates statistical data andanalyses to highlight trends andchallenges, offering actionable insights for banking institutions to thrive amidst competition from traditional and non-traditional players likefintech companies. Keywords:Banking competitiveness, digital transformation, customer experience, fintech, regulatory compliance, financial innovation, operational efficiency, cybersecurity, sustainable banking. The banking sector faces unprecedented challenges due to technological advancements, shifting customer expectations, and the rise of fintech and neobanks. To remain competitive, banks must adapt to these changes while maintaining trust, efficiency, and profitability. According to a 2024 report by PwC, 60% of banking executives believe digital transformation is critical to staying competitive, yet only 30% feel their institutions are adequately prepared. This article outlines key strategies to ensure banks remain agile and resilient in this dynamic environment. Digital transformation is no longer optional; it’s a cornerstone of competitiveness. Banks must invest in technologies like artificial intelligence (AI), blockchain, and cloud computing to streamlineoperations and enhance customer experiences.  AI-driven tools can personalize customer offerings and improve risk assessment. For instance, JPMorgan Chase’s COiN platform uses AI to analyze legal documents, saving 360,000 hours annually.  Blockchain enhances transaction security and reduces costs. A 2023 study by Deloitte found that 55% of global banks are experimenting with blockchain for cross-border payments.  Cloud adoption improves scalability. By 2025, Gartner predicts 85% of banks will operate primarily oncloud-based infrastructure. Banks adopting digital tools report a 15-20% increase in operational efficiency (McKinsey, 2024). However, legacy systems remain a hurdle, with 70% of banks citing outdated infrastructure as a barrierto transformation. Customers now expect seamless, personalized experiences akin to those offered by tech giants likeAmazon. Banks mustleverage data to tailorservices andimproveaccessibility.  Integrating mobile apps, online platforms, and physical branches ensures a cohesive experience. A 2024 survey by Accenture revealed that 65% of customers prefer banks withrobust digital and in-person services.  Using AI to offer customized loans or investment plans boosts loyalty. For example, Goldman Sachs’ Marcus platform saw a 25% increase in customer retention after introducing tailored savings products. page599 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue04,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai Banks focusing on customer experience see a 10-15% rise in customer satisfaction scores and a 20% increase in cross-selling opportunities (Forrester, 2024). However, privacy concerns mustbeaddressed to maintain trust. To compete with fintechs like Revolut and Chime, banks must offer innovative products thatmeet evolving needs.  Sustainable banking products, like green bonds, are gaining traction. In 2023, global green bondissuance reached $500billion,up10% from 2022(Bloomberg).  Integrating banking services into non-financial platforms (e.g., Uber offering loans) is a growing trend. By 2030, embedded finance is expected to generate $230 billion in revenue globally (Bain &Company). Innovative products attract younger demographics, with 40% of Gen Z preferring banks with socially responsible offerings (EY, 2024). However, banks must balance innovation with regulatory compliancetoavoid penalties. With cyberattacks on financial institutions rising by 20% annually (IBM, 2024), robust cybersecurity is critical to maintaining customertrust and operational integrity.  Implementing continuousverification reduces breach risks.  Machine learning models can detect anomalies in real-time. For instance, HSBC’s AI- based fraud detection system reduced false positives by30%. Banks with advanced cybersecurity frameworks report 50% fewer breaches and higher customer confidence (Capgemini, 2024). However, smaller banks often lack the resources to implementcutting-edge solutions. Streamlining processes through automation and partnerships reduces costs and improves service delivery.  Robotic Process Automation (RPA): RPA can automate repetitive tasks like loan processing. A 2024 study by EY found that banks using RPA reduced operational costs by 25%.  Fintech Partnerships: Collaborating with fintechs allows banks to offer innovative services without heavy R&D investments. For example, BBVA’s partnership with Holvi enhanced itsSME bankingse