DIGITAL TRANSFORMATION AS A SYSTEMATIC LEVER FOR ENSURING THE COMPETITIVENESS OF FINANCIAL INSTITUTIONS

Abstract

Introduction. The modern financial system is in a state of active digitization, which is a key factor in increasing the efficiency of financial institutions, including banking processes. The development of information technologies, the increase in the volume of processed data and the growth of customer requirements for the speed and quality of financial services force banks to introduce innovative technologies to optimize their activities and ensure the competitiveness of financial institutions. One of the most promising solutions in this field is artificial intelligence, which gradually transforms traditional methods of organizing and managing banking processes, allowing to automate routine operations and make informed management decisions, evaluate credit applications, analyze the financial condition of clients and bank portfolios, identify fraudulent transactions and improve the efficiency of customer service. The use of machine learning methods and big data analytics allows predicting customer behavior, automatically forming personalized offers, optimizing credit risks and reducing service costs.

Objective. It is important to note that the implementation of artificial intelligence increases not only the efficiency of the bank's work, but also the quality of customer service, automatic chatbots provide instant consultations 24/7, automatic loan approval algorithms reduce the waiting time for customers, and risk analysis systems help banks avoid losses from unreturned loans.This contributes to increasing the trust of clients and strengthening the reputation of the financial institution, ensuring its competitiveness in the market of financial services. For the Ukrainian banking system, which operates in conditions of constant economic changes and high competition, the use of artificial intelligence becomes especially relevant.

The purpose of the article. The purpose and relevance of the topic is determined by practical examples of the use of artificial intelligence in leading Ukrainian banks, such as JSC CB «PrivatBank» and monobank. PrivatBank uses chatbots and automatic application processing systems in the Privat24 mobile application, which allows customers to quickly receive consultations and issue loans without the need to visit a branch. Monobank uses algorithms for automatic loan approval, personalized offers and risk assessment systems, which increases the quality of service and the speed of providing financial services. The experience of these institutions is an important source for analyzing modern trends in the automation of banking processes and evaluating the effectiveness of implementing innovative technologies in domestic practice and ensuring competitiveness.

Materials and Methods. The analysis of the research made it possible to comprehensively highlight the application of artificial intelligence for the automation of banking processes and the analysis of the practice of its implementation in JSC CB «PrivatBank» and monobank, the methodological basis of which are general scientific and special research methods, such as analysis, synthesis, comparative and systematic approach, which allow to comprehensively study the implementation of artificial intelligence in banking processes, to assess its impact on work efficiency and service quality.

Results. According to research, elements of artificial intelligence in their activities, which allow to increase work efficiency and reduce operating costs. This global context confirms the expediency of active implementation of artificial intelligence in Ukrainian financial institutions as well, which ensures their competitiveness.

Prospects. The practical significance of the research lies in the possibility of using conclusions and recommendations to improve the automation of banking processes with the use of artificial intelligence in the educational and practical activities of banks, which will further ensure the competitiveness of financial institutions.