doi.org/10.52340/eab.2025.17.01.05

The digital transformation of the banking sector has revolutionized financial services globally, and Georgia has been no exception. Over the past decade, Georgia's banking industry has undergone significant changes, driven by technological advances and the growing demand for more accessible, secure, and efficient financial services. As a result, digital banking platforms have gained widespread adoption, enabling Georgians to conduct financial transactions, manage accounts, and access services remotely. This shift has led to numerous benefits, such as improved accessibility, enhanced financial inclusion, and operational efficiency, but also presents challenges like cyber security risks, digital literacy issues, and data privacy concerns.
One of the primary benefits of digital banking in Georgia is its ability to improve accessibility, particularly for people in rural areas. In the past, many rural Georgians faced difficulties accessing banking services due to the limited number of physical branches outside urban centers. With the rise of digital banking, however, customers can now manage their finances, pay bills, transfer money, and apply for loans through mobile apps and web platforms, without having to visit a bank in person. This increased accessibility has provided underserved populations with greater opportunities to engage in financial activities, bridging the gap between urban and rural banking services (TBC Bank, 2023).
Moreover, digital banking has contributed to financial inclusion in Georgia. Historically, many Georgians relied on cash transactions or had limited access to formal financial services. The digital revolution has made it easier for individuals, particularly those in remote areas, to open bank accounts, apply for loans, and access insurance products. Financial inclusion helps individuals participate more fully in the economy, fostering economic empowerment and growth. In a country where a significant portion of the population was previously unbanked or underbanked, this shift has been crucial for improving economic opportunities and reducing poverty (Berk, 2020).
In addition to increased accessibility and inclusion, digital banking has enhanced operational efficiency within banks. Traditional banking processes were often slow and manual, which could lead to delays, errors, and inefficiencies.
The introduction of digital tools and automation has streamlined processes such as transaction processing, account management, and document verification. As a result, banks can now provide faster, more accurate services, improving the overall customer experience. Additionally, digital banking allows real-time tracking of transactions, helping customers identify and prevent fraudulent activity more effectively (TBC Bank, 2023).
However, the digital transformation of banking in Georgia also presents several challenges. Cybersecurity is one of the most pressing concerns. As more banking services move online, the risk of cyberattacks and fraud increases. To mitigate these risks, banks must invest in robust security measures, including encryption and multi-factor authentication. Another challenge is the digital literacy gap, particularly among older adults who may lack the skills to navigate online banking platforms. Georgian banks must address this issue by providing training and customer support to ensure that all segments of the population can benefit from digital banking (Berk, 2020).
In conclusion, while Georgia’s digital banking transformation has provided significant benefits such as improved accessibility, financial inclusion, and operational efficiency, it has also introduced challenges that need to be addressed. By continuing to invest in security measures and digital literacy programs, Georgian banks can further enhance the benefits of digital banking.

Keywords: Digital technologies, financial inclusion, economic growth, social development, mobile banking, automation, big data analysis.

JEL Codes: G21, O16, O33, D83

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