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THE IMPACT OF DIGITAL TRANSFORMATION ON GEO-TERRITORIAL RESTRUCTURING OF BANK BRANCHES

Vlada Schugoreva

Abstract

This study is devoted to the problem of digital transformation impact on the world economic system in banking industry in terms of changing the existing business model of banks. It is shown that currently in the banking sector there is a growing trend of transition to digital services, which are more preferable for bank customers, thus displacing the traditional business model. These factors allow us to conclude that this direction is a priority for banking sector development in the medium term, while the digital transformation of banks makes it possible to optimize costs and thus make banking products more competitive. At the same time, transition to a digital model entails a geo-territorial restructuring of bank branches. This concept is considered on the example of leading Russian and foreign banks that have the highest degree of their digitalization maturity. As part of this approach, a conceptual model has been developed for assessing the impact of banking digitalization on the geo-territorial distribution of banking units depending on prevailing business model of the bank (traditional banks and neobanks). In particular, Sberbank has 110 million customers, Tinkoff Bank has 5 million. At the same time, Sberbank has 14,000 units in each municipality of Russia and only 1 office in Tinkoff Bank. Taking into account the stated facts, an influence of digital technologies on optimization of banking activity is shown on example of the world?s largest fully online bank by customer base and the biggest traditional bank in Russia. Results of this research can be used to improve the efficiency of management decisions related to restructuring of banking activities in order to increase the competitiveness of banks in the context of structural changes in a global economic system due to transition to the digital economy.

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