FROM PHYSICAL BRANCHES TO ALGORITHMS: STRATEGIC POSITIONING OF BANKS IN THE DIGITAL WORLD

Abstract

The article is devoted to the analysis of transformational processes in the banking sector driven by the rapid development of digital technologies. The traditional branch-centered banking model is gradually being replaced by platform-based solutions that rely on artificial intelligence, big data, and real-time algorithms. This shift necessitates a fundamental rethinking of banks’ strategic positioning, which increasingly depends on the implementation of technological innovations and the integration of moral capital as a strategic banking resource. It is established that the success of banks in the digital environment depends on their ability to harmoniously combine innovation with ethical responsibility. The personalization of financial services through artificial intelligence, the development of payment solutions, the construction of open ecosystems, and the establishment of partnerships with fintech companies have become defining trends. At the same time, challenges arise from cybersecurity risks, ethical dilemmas related to the use of clients’ personal data, and the threat of losing customer-centricity in fully algorithmized service environments. The article highlights the role of moral capital in banking, where transparency of operations, ethical interactions, and accountability for client data security become critical factors of long-term competitiveness in an era of accelerated technological advancement. A new concept of strategic positioning is proposed—one that is rooted not only in technological modernization, but also in the implementation of digital morality principles. Among the main directions for banks’ adaptation to new realities are the shift toward embedded banking models, integration of financial services into customers’ daily lives, utilization of artificial intelligence for personalized communication, development of omnichannel platforms, and enhancement of organizational flexibility. The future of banking will depend on the ability to create a seamless, user-friendly, and morally oriented financial environment, where strategic positioning combines technological leadership, deep understanding of consumer expectations, and the consistent integration of ethical foundations into banking practice.