DIGITAL TRANSFORMATION OF BANKS AND THEIR ROLE IN THE SOCIO-ECONOMIC DEVELOPMENT OF REGIONS

Аннотация

The digital transformation of banking institutions has become a cornerstone of financial sector reform across the globe. This paper explores the multifaceted role of digital banking in fostering regional socio-economic development. It examines how innovations such as mobile banking, digital payment platforms, and AI-driven customer services not only enhance financial inclusion but also stimulate local entrepreneurship, improve government service delivery, and promote regional investment. Drawing on global examples and emphasizing applications in emerging economies, the article highlights the need for supportiveinfrastructure, policy frameworks, and digital literacy to fullyleverage thebenefits ofbank digitalization. Keywords:Digital Banking, Financial Inclusion, Regional Development, Fintech, Socio- EconomicGrowth, Smart Banking, Infrastructure, Innovation Literature review The digital transformation of banking systems has attracted significant scholarly and institutional attention, particularly regarding its implications for financial inclusion, regional economic development, and social equity. This section reviews the key contributions in the field, identifying prevailing themes and research gaps. Scholars such as Gomber et al. (2017) argue that the emergence of digital banking constitutes a paradigm shift in the financial services sector, driven by rapid advances in information and communication technologies. Their research outlines how fintech innovations — including mobile banking apps, robo-advisors, and blockchain — have redefined customer engagement and operational models. Similarly, Vives (2019) discusses the disruptive nature of digital banking and highlights how traditional banks are compelled to adapt to maintain competitiveness inan increasingly tech-oriented financial landscape. Digital banking’s role in promoting financial inclusion has been well-documented. According to Demirgüç-Kunt et al. (2018) in the Global Findex Database, digital financial services are a key lever for bringing the unbanked population - especially in rural and low-income regions - into the formal financial system. The work of Jack and Suri (2014) on Kenya’s M-Pesa platform provides empirical evidence that access to mobile banking services significantly improves household welfare, resilience, and women’s economic participation. Moreover, the World Bank (2022) emphasizes the role of digital platforms in reducing income disparities by facilitating inclusiveaccess to credit, insurance, and savings tools. From a regional development standpoint, several studies highlight the catalytic effect of digital banking in enhancing local economic activity. Schindler (2017) shows how regional economies with access to digital financial tools exhibit higher rates of entrepreneurship and page34 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue05,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai SME formalization. Studies by UNCTAD (2021) reveal that digital banking ecosystems also stimulate investment in regional digital infrastructure — such as broadband and cloud services — which, in turn, enhances productivity across sectors including agriculture, retail, andlogistics.