THE DIGITAL TRANSFORMATION OF BANKING AND FINANCIAL INSTITUTIONS: RESILIENCE, RISKS, AND REGULATORY CHALLENGES

Abstract

The banking and financial services sector is undergoing a substantial digital transformation due to technological advancement, shifting consumer expectations, and pressure from unconventional rivals. The dual effects of this change are examined in this article, which highlights how digitalization increases operational resilience and customer accessibility while simultaneously creating new threats to cybersecurity, data privacy, and financial stability. By analyzing recent research and industry case studies, we look at the strategic needs of established institutions and the evolving regulatory landscape. The findings show that a balanced approach that employs technology for efficiency while establishing robust governance and adaptable regulation is necessary to preserve stability and foster equitable growth in the digital financial era.