Digital Transformation of Financial Services: Revolutionizing the Global Financial Ecosystem

Abstract

During the last decade, there has been a considerable evolution in the financial service industry due to the implementation of digital technology in everyday activities. Technologies like artificial intelligence, block chain, big data, cloud computing, and mobile platform technologies have completely changed the game for banks, insurance companies, fintech organizations, and investment companies. Not only the usage of digital technologies has led to the changes in the financial services industry but also the process of creation, delivery, and protection of financial values has transformed through this process. Using digital transformation in their activity, financial organizations could become more efficient, maintain stronger relations with customers, create novel financial products and stay within the framework of regulation. In this paper, the most important drivers, components, problems, consequences, and current tendencies of digital transformation in the financial service sector will be analyzed. The global case studies of fintech platforms, digital banks, and block chain financial solutions will be considered in order to show how theoretical approaches work in practice. Special attention will be paid to how digital transformation influences financial inclusion, risk management, cyber security, and customer experience of financial services industry.