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

Abstract

Industry 4.0 or Digital Revolution ischanging the way we live, changing interactions withclients and companies, which inevitably implies thatboth existing business methods and financial servicesare not exempt from this change. In the bankingworld, accelerated digitalization has made banks intensivelyre-examine traditional business models,which means that they have to respond quickly andefficiently to the demands of their clients while offeringsafe and simple services for use. Security and trust arestill key determinants, and banks have developed innovativebanking services and products over the pastfew years, including secured systems that reliably protectdata and money of clients. However, just like anyindustrial revolution, both Industry 4.0 and its impacton the transformation of the banking sector carrywith themselves both positive and negative consequencesof this transformation. Digitalization of thebanking sector is in full capacity, with the fact that thisprocess also includes other component parts of the Industry4.0, such as blockchain networks, artificial intelligence,IoT, biometrics, cooperation of banks withFinTech companies, preparation of the platform andother services for the Generation Z and other.In this paper, we explore how increased competition,new legislation, and all the changes that camewith digitalization, will affect the banking sector inthe upcoming period, will the banking sector look significantlydifferent in the upcoming years, and will, despiteall technological changes, human factor, trustand security still be the key determinants.