Digital Transformation and Financial Oversight in Banking

Abstract

This study examines the impact of digital transformation in the banking sector on the effectiveness of financial oversight within national banking institutions. The findings indicate that the adoption of digital technologies, including advanced data analytics, real-time monitoring systems, and other digital tools, enhances risk management, reduces fraud, and strengthens regulatory compliance. The transition from traditional bank branches to digital platforms has reshaped how banks engage with customers and manage operations, increasing efficiency and transparency in financial transactions. However, the study also identifies challenges associated with digital technology adoption, such as cyber threats, the complexity of data management, and potential algorithmic bias. Addressing these challenges requires policies that support secure digital oversight, reinforcement of cybersecurity measures, and responsible training and education. The results carry significant implications for policymakers, regulators, and banking executives, emphasizing the necessity of collaboration between government, regulators, and the banking sector to ensure a safe, sustainable, and effective digital transformation.