Banking digitalization and regional development: a matrix-based framework of interconnections

This article examines the relationship between the digitalization of the banking sector and the development of regional economic systems. A matrix-based analytical approach is proposed, within which digital technologies are aligned with the functional roles of banks in the regional economy. It is demonstrated that the key transmission channels of digitalization include the expansion of financial inclusion, the reduction of transaction costs, support for small business development, and the advancement of infrastructure financing. The study highlights that the significance of these mechanisms varies depending on the level of regional socioeconomic development.