Abstract

This study explores the dynamics of customer trust within the context of digital transformation in the banking industry, emphasizing how innovations such as mobile banking, open banking, and blockchain reshape trust formation in the new economy. The main question addressed is how digital transformation influences customer trust through technological, organizational, and security dimensions. Using a qualitative approach, data were collected through an extensive literature review, analysis of relevant case studies, and thematic synthesis of academic sources. The study identifies key factors affecting trust, including perceived security, transparency of digital processes, and the reliability of digital service delivery. The thematic analysis reveals that while digital transformation enhances convenience and accessibility, it simultaneously introduces new concerns regarding data privacy and cybersecurity. The discussion highlights the role of trust-building mechanisms in encouraging customer trust. The findings indicate that customer trust in digital banking is depending on the perceived balance between innovation and security assurance. Overall, this article provides an understanding of how digital transformation reshapes trust in the banking sector, offering insights for financial institutions seeking sustainable trust-based digital relationships in the new economy.