Digitalization and Business Process Reengineering in Georgia's Banking Sector

Today’s rapidly changing economic and technological environment is actively driving the transformation of the banking sector, particularly in the directions of digitalization and business process reengineering. The article "Digitalization and Business Process Reengineering in the Banking Sector of Georgia" aims to reinterpret and systematize the ongoing developments in Georgia’s banking industry within the context of digital transformation and process improvement. The research focuses on how business processes can be modernized through contemporary technologies and how they can be optimized to enhance both operational efficiency and customer satisfaction. The paper discusses the PDCA, PDSA, and DMAIC cycles as tools for continuous process improvement. It presents the methodology of the "As-Is" analysis and provides a comparative analysis of restructuring practices using the examples of three leading Georgian banks. The findings highlight that these banks employ different approaches, underscoring the existence of distinct strategic visions and their adaptability to changing market demands. Simultaneously, the article identifies the typical challenges and recurring mistakes often encountered during the implementation of reengineering initiatives. The core contribution of the study lies in aligning theoretical frameworks with practical cases – integrating classical management approaches with the imperatives of modern digital transformation. Furthermore, the article emphasizes that successful reengineering requires not only revisiting existing processes but also transforming corporate culture, directing investments appropriately, and ensuring active managerial engagement. The approaches outlined in the study enable banking institutions to conduct comprehensive process inventories, apply Total Quality Management (TQM) tools, and manage processes as strategic subsystems. This research supports the enhancement of the Georgian banking sector’s global competitiveness. The article is intended to assist both academic audiences and policy-making institutions that are interested in increasing the efficiency of the banking sector through modern technological approaches. Keywords: digitalization; business processes; reengineering; banking sector; loan Approval process; “As-Is” model; TQM.