This article examines the impact of digital transformation and digital technologies on the effectiveness of banking activities. Through a comprehensive analysis of relevant literature and empirical data, the authors explore various dimensions of digital technologies and their impact on banking performance. In the article, digital transformation in the banking system involves the integration of digital technologies to modernize operations, improve customer experience and improve overall efficiency. This process has gained significant momentum in recent years as banks strive to remain competitive in a rapidly evolving financial environment. In the banking system, the analysis of digital transformations has been comprehensively analyzed on several key technologies that play a decisive role in increasing efficiency.

This article highlights the theoretical aspects of the digital economy, the technological changes characteristic of the digital economy, the reforms being implemented in our country to develop the service sector, and the issues related to changes in the field of digitalization. Based on the conducted research, the author has proposed practical recommendations.