THE IMPACT OF INDUSTRY 4.0 ON THE TRANSFORMATION OF THE BANKING SECTOR

Abstract

Industry 4.0 or Digital Revolution is
changing the way we live, changing interactions with
clients and companies, which inevitably implies that
both existing business methods and financial services
are not exempt from this change. In the banking
world, accelerated digitalization has made banks intensively
re-examine traditional business models,
which means that they have to respond quickly and
efficiently to the demands of their clients while offering
safe and simple services for use. Security and trust are
still key determinants, and banks have developed innovative
banking services and products over the past
few years, including secured systems that reliably protect
data and money of clients. However, just like any
industrial revolution, both Industry 4.0 and its impact
on the transformation of the banking sector carry
with themselves both positive and negative consequences
of this transformation. Digitalization of the
banking sector is in full capacity, with the fact that this
process also includes other component parts of the Industry
4.0, such as blockchain networks, artificial intelligence,
IoT, biometrics, cooperation of banks with
FinTech companies, preparation of the platform and
other services for the Generation Z and other.
In this paper, we explore how increased competition,
new legislation, and all the changes that came
with digitalization, will affect the banking sector in
the upcoming period, will the banking sector look significantly
different in the upcoming years, and will, despite
all technological changes, human factor, trust
and security still be the key determinants.