Economics of Development
Economics of Development
ISSN 1683-1942 e-ISSN 2304-6155 UDC 33
DOI: 10.63341/econ
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Modern banking services and the impact of digitalisation

Ragib Mammadli*

Mammadli.Raqib.Mammadali.2023@unec.edu.az

Received 11.02.2026, Revised 06.07.2026, Accepted 01.09.2026 Published 02.10.2026

Abstract

The digitalisation of the banking industry represents a major challenge, closely linked to the growth of financial technologies and customer expectations. The purpose of this paper was to examine the main digital banking services, the key financial technologies that support them and their benefits and challenges for banks and their customers. This study was based on qualitative analysis, literature review and a systematic organisation of information related to modern digital banking services. As a result, eight key digital services that fundamentally changed the customer experience were identified, including online account management, contactless mobile payments, instant transfers, e-wallets, chatbots, online investment and automated budgeting tools. Furthermore, main financial technologies such as artificial intelligence, blockchain, cloud computing, big data and cybersecurity were shown to improve operational efficiency, transaction security and service personalisation. The results showed that the digitalisation of banking services improved accessibility, convenience, financial inclusion and budget optimisation for customers. However, this study also emphasised major challenges related to data privacy, cybercrime, reliance on technology, reduced human interaction and digital isolation. These challenges, combined with sociocultural barriers, prevent 1.3 billion unbanked adults from accessing digital banking services. The practical value of this paper lies in demonstrating the need for banks and financial institutions to invest in secure infrastructure, hybrid solutions combining digital services and human support, and data protection policies that enhance customer trust and improve the stability of digital banking services


Keywords:

digital banking; customer experience; fintech; mobile application; financial inclusion

https://doi.org/10.63341/econ/3.2026.22

Retrieved from Volume 25, No. 3, 2026

Pages 22-31

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Suggested citation

Mammadli, R. (2026). Modern banking services and the impact of digitalisation. Economics of Development, 25(3), 22-31. https://doi.org/10.63341/econ/3.2026.22