Analysis of digital transformations on the operational efficiency of commercial banks in Ukraine

Abstract

The rapid spread of digital technologies in the banking sector is causing profound changes in the organization of operational activities, the cost structure, and the requirements for the speed and quality of customer service. Under such conditions, it is relevant to assess the impact of digitalization on the efficiency of commercial banks in Ukraine, taking into account their specific operating conditions. The purpose of the study is to quantitatively determine the strength and direction of the impact of digital transformations on the operational efficiency of banking activities and identify key factors that determine this impact. Methods. A panel analysis of data from commercial banks of Ukraine for 2018–2025, correlation-regression tools, an index approach to assessing the level of digitalization, as well as comparative analysis and grouping methods were used. Operational efficiency was measured by indicators of cost efficiency, asset productivity, and the ratio of operating expenses to income. Results. A statistically significant inverse relationship was found between the level of digitalization and operational costs, confirming the reduction in costs due to process automation. At the same time, an increase in asset productivity was observed in banks with a high level of digital services, with the greatest effect from remote service channels and digital payment instruments. Along with positive results, limitations associated with cyber risks, the high cost of supporting IT infrastructure, and uneven digital development across banks were identified. Conclusions. It was established that innovative transformations are a significant factor in increasing the operational efficiency of Ukrainian banks; however, achieving sustainable results requires the systemic integration of digital solutions, cost optimization for technological renewal, and strengthening risk management. Further research should focus on assessing the long-term effects of digitalization and on developing models to predict banking performance.