Page 130 - "Green Investments and financial technologies: opportunities and challenges for Uzbekistan" International Scientific and Practical Conference

“Yashil investitsiyalar va moliyaviy texnologiyalar: O‘zbekiston uchun imkoniyatlar va muammolar” mavzusida xalqaro
ilmiy-amaliy anjuman materiallari to‘plami (Toshkent, JIDU, 2025-yil 7-may)

DIGITAL TRANSFORMATION IN THE BANKING SECTOR: THE
STRATEGIC IMPACT OF EMERGING TECHNOLOGIES
108
Baxadirova Madinabonu Rustamovna

Over the past few years, the banking sector around the world has been
experiencing a profound change as a result of technology. It has been accurately said
that “disruption due to technology” is transforming how banks function, interact
with clients, and provide services. The old banking system that relied on physical
branches and other face-to-face activities is being replaced by new, advanced digital
systems, intelligent algorithms, and pervasive data analytics.

Some of the most notable changes can be observed in mobile banking,
customer service chatbots powered by artificial intelligence, biometric system
logins, and banks that do not possess physical locations. From a business
perspective, these developments in the technology industry can no longer be seen as
an enhancement; they have become a requirement for sustaining business operations.
Failure to keep up with such innovations will inevitably lead to obsolescence in
today’s rapidly changing advanced technology world.

The purpose of this thesis-style article is to investigate the strategic
importance of new technologies in forecasting the future of banking, particularly in
regard to how digital transformation facilitates operational efficiency, customer
satisfaction, and profounds multi-generational sustainability. This research
examines the driving forces of digital transformation, the technologies that are focal
to them, and the detrimental and beneficial impacts of their implementation in
contemporary banking systems.

By analyzing current trends and forward-looking strategies, this article intends
to provide a comprehensive view of the evolving banking ecosystem, drawing
attention to the ways technology is not only reshaping banking operations but also
redefining consumer expectations, regulatory challenges, and the very nature of
financial services.
Digital transformation in banking is the process of incorporating modern
technologies into all components of a financial institution to positively enhance its
processes, customer interaction, and value creation. It goes beyond just applying a
new software solution or turning physical forms into digital versions—rather, it
entails changing business hierarchies, reconstructing service designs, and
fundamentally developing the entire business structure through the use of various
digital mechanisms.

108 The University of World Economy and Diplomacy, Mbahodirova01@gmail.com

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