The impact of modern financial technologies on the growth of operational risks in banks

Abstract

The aim of this study is to analyze modern financial technologies and determine their impact on the transformation of operational risks in the banking sector, as well as to develop recommendations for improving risk management systems considering digitalization and the implementation of innovative solutions. Methods. A comprehensive methodological approach was applied, combining the analysis of legal and regulatory acts, National Bank of Ukraine regulations, and a review of scientific sources on operational risks and FinTech. System analysis, comparative research, and risk classification methods were used to establish the relationship between digital banking tools and the emergence of new risk factors. The results indicate that the implementation of digital technologies in the banking sector significantly alters the structure of operational risks, leading to the evolution of traditional risks and the emergence of new threats, such as cyber risks, functional model risks, and digital contamination risks. Legislative and regulatory documents, including the Laws of Ukraine «On Banks and Banking Activities», «On Payment Services», «On Electronic Identification and Trust Services», as well as several resolutions of the National Bank of Ukraine, define the legal and organizational framework for ensuring the security of banking operations, regulate the use of electronic documents, authentication, and personal data protection. Scientific research confirms that a comprehensive approach to identifying, assessing, and managing operational risks contributes to increasing the efficiency and reliability of banking activities in the context of digitalization. Based on the analysis, recommendations have been proposed to enhance operational risk management systems, including integrating FinTech solutions into control processes, implementing modern cybersecurity measures, strengthening internal audit procedures, and utilizing analytical tools for forecasting and mitigating potential threats. Conclusions. The study concludes that the successful implementation of innovative technologies in the banking system is possible only through a systematic approach to operational risk management, ensuring stability, security, and competitiveness of financial institutions.