DIGITALIZATION CHALLENGES TO GLOBAL BANKING INDUSTRY

Globalization has been transforming contemporary world for the last 30-40 years. Almost in all countries offices of globally-operated banks wedged in national banking systems, grabbed a significant part of local clients pretending to a dominant position and, importantly, having enough resources to fulfil these plans. Digitalization process of the last several years has strengthened competition even more. It created new rivals for banks in the form offintech companies (FinTechs). FinTechs are substituting banks in many traditional markets, including payment services, assets management and financial consulting. They suggest clients to interact with them in a very cheap and convenient way. But at the same time FinTechs bring with them new risks for consumers because these non-bank institutions are not regulated with full-fledged tools which are used by central banks to secure stability in the banking system. Digitalization requires from banks to be on the edge of innovation and to give an adequate response to new challenges. Smart-offices of banks with a seamless technology of serving clients, broad qualification of staff and other special features is one of the means in the fight of real banks with quasi-banks or shadow banks with digital nature. Another challenge for all but especially for banks in a digital epoch is a cyber security. If banks do not pay sufficient attention to the protection of financial and personal data of their clients, they pose a serious risk to consumers. Online theft of money from digital wallets and credit cards, money laundering through digital channels and many other crimes are inherent satellites of digital convenience and prosperity.