Digitalization of finance and the evolution of banking regulation: institutional reversal from the Glass-Steagall model to platform-based banking

Abstract

The article substantiates the theoretical interpretation of the digitalization of finance as a driver of institutional transformation in banking regulation. It is argued that the regulatory logic embedded in the Glass-Steagall model, based on functional separation, is being gradually replaced by a model of technological convergence grounded in platform-based banking. The study demonstrates that financial innovations, fintech expansion, and artificial intelligence technologies reshape not only the efficiency parameters of financial intermediation but its structural architecture, leading to an institutional reversal.