Impact of Digital Transformation on Bank Branding and Financial Performance: Profitability and Competitiveness in the Digital Age
Morozova N. L., Hodlevskyi M. O.

Morozova, Nadiia L., and Hodlevskyi, Maksym O. (2025) “Impact of Digital Transformation on Bank Branding and Financial Performance: Profitability and Competitiveness in the Digital Age.” The Problems of Economy 3:291–298.
https://doi.org/10.32983/2222-0712-2025-3-291-298

Section: Finance and banking

UDC 336.71:004.738.5

Abstract:
Today, one of the main factors in the development and adaptation to the current conditions of martial law in banking is the digital transformation of the banking sector. Digital transformation is radically changing the financial sector, affecting not only banks’ internal business processes, but also their market positioning, branding strategy, and financial performance. This article examines the impact of digital innovation on the profitability, competitiveness, and adaptability of banking institutions to new market conditions. The article considers key technological trends, such as artificial intelligence, process automation, the use of big data, blockchain, and the introduction of open banking, which contribute to improving the efficiency of banks’ operations, optimizing costs, enhancing security, and personalizing financial services. Special attention is paid to digital channels of communication with customers, mobile and internet banking, which play an important role in strengthening brand trust, increasing customer engagement, and expanding the customer base. The report analyzes how the introduction of modern technologies affects banks’ financial performance, in particular, profitability growth, optimization of operating costs, and improvement of liquidity and capital ratios. The digital transformation of banking has a positive impact on the branding and competitiveness of banks. Banking institutions that actively implement digital technologies in the current operating environment significantly increase profitability and strengthen their market positions. Based on the study, the author provides recommendations for further digitalization of banking, the implementation of which will increase the efficiency of banking operations and have a competitive advantage in the context of global changes in financial services markets.

Keywords: digital transformation, banking branding, financial indicators, profitability, competitiveness.

Tabl.: 2. Bibl.: 18.

Morozova Nadiia L. – Candidate of Sciences (Economics), Associate Professor, Head of the Department, Department of Management, Business and Professional Communications, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: nadya.morozova.26@gmail.com
Hodlevskyi Maksym O. – Applicant, Department of Management, Business and Professional Communications, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: maksym.hodlevskyi@karazin.ua

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