Looking globaly the whole World is affected by the development of technology and digitalization which are rapidly changing society and ways how it operates. Banking industry, like any other, is no exception in this process. As digital age is progressing, all industries are required to transform and adapt their business strategies and models to fit the digital era with aim to satisfy needs and preferences of their customers and improve and extend their current products and services and therefore survive on the global market. Goal of this thesis is to explore the effects of digital technologies and transformation on traditional banking industry. It further seeks to investigate how banking industry is changing and adapting to the digital age. This thesis was inspired by acquired knowledge on the Master degree in Managerial Informatics of Faculty of Economic & Business, University of Zagreb. Thesis itself is analysing digital technologies that are used in banking with their challenges and future development. For the analysis of these changes various sources will be used combined with case studies on digital banks and new payment solutions. Case studies in the thesis will analyze new banking solutions that are arising from digitalization for the whole industry and a view of potential future trends. This thesis also represents the general overview of adoption of digital technologies in banking.