THE IMPACT OF DIGITAL TECHNOLOGY TRANSFORMATION ON THE BANKING SYSTEM

Abstract

This research aims to evaluate the transformative impact of digital technologies on the global banking system, with a special focus on the Republic of Armenia. Consequently, the research objective is twofold: to identify and analyze the technological systems driving digitalization in banking, and also to empirically assess the relationship between digital adoption and bank profitability using econometric methods. This study contributes to the literature by offering a rare econometric quantification of digital transformation’s impact on banking profitability across a large global sample. It also presents Armenia as an emerging case of digital banking success, providing insights for other developing economies undertaking similar transitions.