PROBLEMS IN THE DEVELOPMENT OF DIGITAL BANKING SERVICES IN BANKS: TAXONOMY OF BARRIERS AND THEIR INTERDEPENDENCIES.

Аннотация

The rapid expansion of digital banking services has transformed the financial sector; however, their development
within established banking institutions remains uneven and often encounters significant obstacles. This study examines
the underlying factors that hinder the development of digital banking services in incumbent banks and systematizes
these factors through a structured taxonomy of barriers and their interdependencies. The research employs a qualitative,
document-based approach, synthesizing findings from peer-reviewed studies published during 2017–2026, recent
industry reports, and secondary statistical data. Particular attention is given to the conditions of emerging economies to
broaden the analytical perspective beyond high-income financial systems. The findings identify six major categories of
barriers: technological and infrastructural, organizational and managerial, data and analytical, security and fraud-related,
regulatory and external, and customer and social barriers. The analysis demonstrates that these categories are closely
interconnected rather than independent. Legacy core banking systems function as a primary constraint, limiting technological
integration, reducing data quality, weakening fraud-response capabilities, and ultimately restricting customer
adoption. As a result, a self-reinforcing cycle emerges in which superficial improvements fail to generate sustainable
structural transformation. The findings suggest that many commonly observed shortcomings in digital banking development
originate from a limited number of root causes rather than isolated technical deficiencies. Therefore, effective digital
transformation requires a properly sequenced strategy instead of fragmented and parallel investments. The study contributes
a diagnostic taxonomy and an interdependency framework that can assist banks and regulators in distinguishing root
causes from symptoms and in setting strategic priorities for digital banking development.