Digital twins in banking: Problems and prospects

Aim. To identify key conditions and factors that determine the prospects of implementing digital twins as part of improving the mechanisms of information support for management decision-making (controlling) in banks and business processes for customer service.

Tasks. Research theoretical and methodological foundations of the concept of digital twins, peculiarities of their implementation in the banking business processes; estimate market capacity and potential; identify prerequisites for the concept; analyze the effectiveness of digital twins; reveal the main approaches to the concept of digital twins in Russian banks, systematize directions of application and development.

Methods. We used general scientific methods to analyze articles and publications, held surveys (including Yandex forms) and interviews that were systematized and generalized.

Results. The need to optimize the historically high operating costs of the banks and the importance of ordering disparate databases to support the management decision making has been confirmed. One of the variants for solving these problems is implementation of digital twin technology by banks, which is implemented primarily in replacing physical processes with digital ones (credit conveyors, automated modules of account opening by companies, borrower and project monitoring systems, business analytics systems, antifraud monitoring, etc.). Examples were identified and expert opinions were obtained confirming high efficiency of this technology and its elements which in its turn defines its perspectives against the background of intense competition on the banking market. The key factors of implementation are determined: optimization of banks’ operational business processes, improving the quality of modeling and stress testing. Shortage of qualified specialists in IT sphere, lack of Russian analogues of software and equipment, high cost of implementing technological solutions, departure of foreign developers and integrators from the Russian market were singled out as the most significant problems, associated with the technology implementation. The majority of respondents point to the inevitability of progress, but condition the final decisions based on the formed practice of implementation. It was determined that, given the significant costs of the complex implementation of digital twin technology, it is currently appropriate for banks to focus on individual processes, tasks.

Conclusions. The use of digital twins as an integrated multifactor model based on modern digital technology in banking improves the efficiency of bank controlling, customer service and ensures the reduction of the cost of business processes. It is this concept, using modern technological solutions, will contribute to the replacement of a number of physical processes by virtual ones, which will affect the cost of operations and provide banks with direct economic effect.

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