The impact of digitalization on the efficiency of financial management in Ukrainian banks

Abstract

In the context of economic digitalization and the transformation of banking services into the online environment, the issue of effective financial management in banks is becoming increasingly important. The relevance of this research stems from the need to adapt Ukraine’s banking system to the challenges of martial law, rising cyber threats, and rapid technological advancement, which requires a transition to new models of financial management based on digital tools. Purpose. The article explores the impact of digitalization on the efficiency of financial management in Ukrainian banks amid the digital transformation of the national economy. The main focus is on identifying the correlation between the level of digital technology implementation in the banking sector and key indicators of financial management efficiency. Methods. A comprehensive methodological toolkit was applied in the study, including comparative analysis (to evaluate financial indicators of banks with varying levels of digitalization), content analysis (of official reports by banks and the National Bank of Ukraine), and statistical analysis. The theoretical framework is supplemented by modern approaches to financial management, namely functional, process-based, and systemic. The theoretical and methodological foundation of the study is based on modern approaches to financial management, as well as exceptionally functional, process, and systems approaches. According to the functional approach, digital technologies are tools supporting core managerial functions in bank financial management: planning, analysis, control, coordination, and decision-making. The process approach interprets digitalization as optimizing sequential financial procedures, ensuring transparency, flexibility, and controllability. The systems approach enables the bank to be viewed as an open and integrated system where digital tools connect internal financial management processes and external information flows. Results. The study assesses the current level of digital transformation in Ukrainian banks. A statistically significant correlation is identified between the active implementation of digital tools (mobile banking, automated financial platforms, artificial intelligence, robotic process automation) and improved financial performance. A set of digital modernization instruments for financial management (Big Data, BI, RPA, AI, integration with e-government services) is proposed, demonstrating effectiveness under rapid change conditions. Conclusions. The digital transformation of Ukraine’s banking system has a sustained positive impact on the efficiency of financial management by enhancing the flexibility, transparency, and crisis resilience of financial processes. Future research should focus on developing a comprehensive digital strategy for financial management in banks, considering technological trends, emerging regulatory frameworks, cybersecurity risks, and the need for a client-centric service model.