A central element for the functioning of the economy of any country are banks, which ensure the reallocation of financial resources and promote economic growth. Nevertheless, the banking sector, like other sectors of the economy, is dynamic and dependent on the pace and paths of technological progress.
For many traditional banking activities, this is a time of new tasks and challenges. In this context, the full digitalization of traditional banking is not only a prerequisite to remain competitive in the market, but also an important step to prevent the decline of an entire industry. Speed, availability, transparency, technological and organizational flexibility, ease of customer usage services, individual specialization, ease of distribution and commercial attractiveness are the pillars and positive factors of the digitization of today's banking systems.
Among modern banks, the winners are those that take a personalized approach to their customers rather than offering standardized packaged solutions. They introduce new digital technologies. As a result, new forms and elements of financial infrastructure are constantly emerging, such as virtual banks, finance and technology companies, international e-money systems and digital currency markets. Internet banking has gained significant market share by offering its customers valuable advantages over traditional banks, from lower fees to the ability to open and maintain accounts without having to visit a bank branch. It should be noted that the acceleration of integration processes, the development of digital financial innovations, and competition in the banking market have contributed to a significant increase in the resources and volume of banking services, which is actively used by businesses, consumers, and the country alike.
Due to such global and comprehensive changes in the banking sector, the question is how to improve management, control and governance. With strict reporting requirements and rigorous legal regulation of the activities of credit and other financial institutions, Germany has one of the strongest and most stable banking systems in the world. However, today the German banking system faces the question of which monitoring and regulatory approach is best suited to meet the challenges arising from market changes brought about by digitalization and globalization. The rules of conduct have also changed for investors, borrowers, issuers, financial intermediaries, capital market-oriented investors and companies.