DIGITAL BRAND EQUITY AS A FINANCIAL DRIVER OF BANK COMPETITIVENESS IN THE DIGITAL ECONOMY

Abstract

This article examines contemporary theoretical and methodological approaches to interpreting brand capital in the banking sector from marketing and financial perspectives, and argues for its reconceptualisation in the context of the digital economy. The study demonstrates that in the process of digitising banking services, the brand evolves from a marketing communication tool to a strategically important intangible financial asset that directly influences customer trust formation, deposit base stability, risk perception and the cost of attracting financial resources. The study summarises the evolution of the brand equity concept and systematises the main dimensions of brand capital, including customer-based brand equity (CBBE), shareholder-based brand equity (SBBE), financial-based brand equity (FBBE) and employee-based brand equity (EBBE), emphasising their interpretation in banking activity. A comparative analysis is conducted between traditional approaches to measuring brand capital and the digital brand capital approach, based on key criteria such as time sensitivity, level of detail, applicability to the banking sector, implementation cost and role in strategic management. The limitations of classical methodologies are identified, primarily relating to their inertia, high dependence on survey-based data and insufficient consideration of consumers' digital behaviour. A new approach to assessing banks’ digital brand capital has been implemented, combining operational digital indicators with financial performance outcomes. It has been substantiated that digital brand capital is formed as an integral function of three core components: digital brand awareness, search demand and digital brand sentiment. Digital brand awareness is characterised by the proportion of branded mentions in the digital environment and the extent to which the brand is recognised in mobile applications and digital platforms. Search demand reflects the intensity and dynamics of interest in the brand, while digital brand sentiment captures customers’ emotional attitudes and the level of trust in the online environment. Taken together, these indicators represent the cognitive, behavioural and emotional levels of customer–bank interaction in the digital economy. The results demonstrate that digital brand capital is a tangible financial asset that influences the competitiveness, profitability and financial resilience of banking institutions, not merely a marketing category. In the digital economy, digital brand capital can act as an early financial signal, anticipating future changes in a bank’s competitive position before they are reflected in financial reporting. These findings are significant for bank management systems, providing a basis for transitioning from descriptive brand analysis to the quantitative financial and economic modelling of a brand's impact.