DIGITALIZATION OF FINANCIAL SERVICES: INTEGRATION OF INSURANCE TECHNOLOGIES INTO BANKING SERVICES

Abstract

The article examines the processes of digitalization of financial services and their impact on the transformation of interactions between banking institutions and insurance companies in the context of the formation of digital financial ecosystems. The relevance of the study is driven by the deepening digital transformation of the financial sector, changes in consumer behavior in financial services markets, and the growing role of non-bank financial services in banks’ income structures. The paper systematizes theoretical approaches to the interpretation of financial services digitalization, financial technologies (FinTech), and insurance technologies (InsurTech), and analyzes the evolution of cooperation models between banks and insurance companies, ranging from traditional bancassurance to digital and embedded insurance formats. Special attention is paid to the analysis of development trends in the banking and insurance sectors of Ukraine, including the reduction of banks’ physical infrastructure, the increasing role of remote service channels, and the recovery dynamics of the insurance market. These processes are shown to create objective preconditions for expanding digital channels for the distribution of insurance products through banking platforms and for integrating InsurTech solutions into banking services.  The article systematizes the main directions of InsurTech’s impact on key elements of banks’ business models, including revenue sources, operating costs, value propositions, and customer interaction parameters. It substantiates that the use of insurance technologies contributes to the development of integrated financial solutions, enhances customer orientation, and expands banks’ functional capabilities in the digital environment. A conceptual approach to interpreting transformational changes in banking activities under the influence of InsurTech is proposed, which can be applied for analytical assessment and managerial decision-making in the process of banks’ digital transformation.