A New Era of Banking in Georgia: Prospects of Digital Bank
Authors: Teimuraz Goderdzishvili Teimuraz Goderdzishvili 
Published: June 2023

The development of digital banks represents an essential innovation in the banking industry. These banks are financial institutions that offer services such as online banking, mobile banking, and virtual debit cards. Digital banks offer customers low fees, a convenient interface, innovative products, and 24-hour banking services. Digital banks are expected to become even more popular and offer many innovative products.
During the last few decades, the banking sector in Georgia has developed very actively. Leading banks have created many innovative products and listed their shares on the stock exchange. In the business sector, banks have created a certain trend associated with innovation and development. The regulations, policies, etc. adopted by the National Bank of Georgia have established a single standard in the banking sector, thereby protecting the interests of consumers and creating common rules for the financial sector. Along with constant changes, the National Bank of Georgia also develops new directions for the banking sector and tries not to lag behind world trends.
On November 17, 2022, the National Bank of Georgia issued the first license for digital banking activities. According to the digital bank licensing principles developed by the National Bank, after assessing the applicant's business model and compliance with the requirements established by law, a banking license is issued with certain restrictions, and a deadline is set for the full operation of the digital bank and the gradual filling of the minimum amount of supervisory capital. What opportunities does the development of digital banks in Georgia give us, and what is the experience of international digital banks?
In the modern world, the development of globalization and information technology has made it urgent to move the economy to a fundamentally new level. It should be noted that the use of existing methods in the modern economy does not contribute to rapid growth, and the digital economy allows a country to significantly change its position on the world stage. This leads to the generally accepted opinion that the development of the country as a whole is possible with the effective introduction of modern technologies in all spheres of the economy. An ecosystem is a group of organizations that provide continuous interaction with each other using Internet services, technological platforms, government services, and information systems. Initially, the active implementation of digital technologies began in the banking sector, which controlled gold and currency flows. As the most important segment of the economy of any state, the financial sector today reflects the most progressive solutions in digitalization. The innovations proposed in this area aim to improve financial efficiency through better and more personalized services, as well as lower costs for clients. Today, the financial system is undergoing a new evolution in the digital economy. Digital transformation is transforming business models and the banking sector, from the creation of internet banking to remote financial transactions. Thus, modern technological evolution serves as the basis for the sustainable and long-term growth of banks' activities.
Keywords: Digital bank, Innovative products, Modern technologies, POS terminal, Digitalization, E-commerce, FinTech, Online orders.