Trend towards digitization in the financial sector as a driver for the modification of banking legislation

The digital transformation of the financial sector has become a prominent feature of recent years, driven by various factors ranging from technological advancements to geopolitical developments. This study explores the implications of this trend on banking legislation and regulatory frameworks. The main vector of development in the banking sector over the past three years has been the active implementation of digital technologies. This article examines the reasons behind this digital boom. The study identifies the pandemic-induced shift towards remote banking services as a catalyst for the adoption of digital technologies in the financial sector. Subsequent changes in the geopolitical situation, including the imposition of numerous sanctions against Russia, such as disconnection from international payment systems and the suspension of foreign banking services, necessitated the urgent development and implementation of domestic alternatives. Naturally, all the changes taking place had to take place within the framework of the current banking legislation, which is being promptly modified. While most of the initial challenges stemming from the influence of other countries have been overcome, there remains a need to address issues related to the new industrialization, the application of advanced technologies, and the promotion of economic development in Russia. In conclusion, the trend towards digitization in the financial sector has prompted modifications to banking legislation to accommodate evolving technological and geopolitical dynamics. By embracing digital technologies and adapting regulatory frameworks accordingly, financial institutions can better meet the needs of customers and navigate the complexities of the digital age.