BENEFITS AND RISKS OF DEVELOPMENT OF NEW TECHNOLOGIES IN BANKING ACTIVITY
Abstract
The basic tendencies of development of modern technologies of banking services and innovations are defined and considered, problems of their introduction and prospects of use are highlighted. The necessity and implementation of modern technologies of customer service are identified and substantiated and the positive consequences of their application are revealed in order to gain competitive advantages in the banking services market. Any business strives for development. If a business stops to spend efforts to improve its product or service, then on the competitive market inevitably fails. Today, the banking market is a space for innovation. With this in mind, banks need to constantly monitor new ideas for the implementation of products and services that competitors do not yet have. The banking sector is particularly sensitive to changing demand from its customers, and the competition in the banking market is quite fierce and high. Therefore, the desire to win in this fight and retain customers is a top priority. That is why maximum satisfaction of customer needs comes to the fore. In a bank-client relationship, innovation is the first and the ability to offer something that competitors cannot yet, or to attract potential customers in a new way, becomes extremely important. Thus, banking innovation is a vital necessity for the efficient functioning of the bank and its competitiveness. In general, innovation acts as a certain "engine" for the development of the entire banking sector, as it forms the strategic directions of banking institutions. Modern technologies provide new opportunities for banks to increase their customer base and reduce costs while offering customers more convenient access to their products and services. The introduction of the latest service technologies will increase the level of comfort for bank customers, and will provide quality and in-demand financial services. Today, the banking market is a space for innovation. With this in mind, banks need to constantly monitor new ideas for the implementation of products and services that competitors do not yet have. Today, the innovative activity of banks remains one of the most effective methods of competition in the financial services market. At the same time, it should be borne in mind that the process of innovation in the banking sector is associated with certain risks, so it is important for banks to pay attention to the economic feasibility of innovation and its usefulness to customers, and banking market regulators must ensure instruments arising from the development of the latest banking technologies.
References
1. Grebenyuk N.V. (2017). Otsinyuvannya innovatsiynoyi skladovoyi marketynhovoyi diyalʹnosti banku ta vyznachennya yiyi vplyvu na efektyvnistʹ funktsionuvannya banku [Evaluation of the innovative component of a bank's marketing activity and determination of its influence on the efficiency of the bank's functioning]. Marketynh i menedzhment innovatsiy, no. 3, pp. 111–125. [in Ukrainian]
2. Dyba M.I., Yurkevich O.M., Mayorova T.V., Vlasov I.V. and others (2013). Finansove zabezpechennya innovatsiynoho rozvytku Ukrayiny: monohrafiya [Financial support of innovative development of Ukraine: monograph]. Kyiv: KNEU. [in Ukrainian]
3. Esina O.G. (2013). Internet-bankinh v Ukrayini: suchasnyy stan, problemy ta perspektyvy rozvytku [Internet Banking in Ukraine: Current State, Problems and Prospects for Development]. Visnyk sotsialʹnoekonomichnykh doslidzhen, vol. 1, pp. 209–213. [in Ukrainian]
4. Zamula A.O. (2011). Ekonomiko-matematychne modelyuvannya innovatsiynoyi diyalʹnosti komertsiynykh bankiv [Economic and mathematical modeling of innovative activity of commercial banks]. Visnyk Zaporizʹkoho natsionalʹnoho universytetu, no. 3, pp. 82–89. [in Ukrainian]
5. Karcheva I.Y. (2015). Suchasni tendentsiyi innovatsiynoho rozvytku bankiv Ukrayiny v konteksti kontseptsiyi Bank 3.0 [Modern trends of innovative development of Ukrainian banks in the context of the concept Bank 3.0]. Finansovyy prostir, no. 3, pp. 299–305. [in Ukrainian]
6. Kozmenko S.M., Vasilyeva T.A., Leonov S.V. (2011). Marketynh bankivsʹkykh innovatsiy [Marketing of banking innovations]. Marketynh i menedzhment innovatsiy, no. 1, pp. 13–28. [in Ukrainian]
7. Kuchanskyy O.Y., Mazurak V.V. (2015). Perspektyvy rozvytku v Ukrayini system dystantsiynoho bankivsʹkoho obsluhovuvannya kliyentiv [Prospects for development of remote banking customer service systems in Ukraine]. Upravlinnya rozvytkom skladnykh system, no. 23 (1), pp. 115–119. [in Ukrainian]
8. Lubenets S.V., Grishunin V.V. (2016). Modelyuvannya intehralʹno-reytynhovoyi otsinky investytsiynoyi pryvablyvosti bankiv [Modeling of integral-rating estimation of investment attractiveness of banks]. Visnyk Kharkivsʹkoho natsionalʹnoho universytetu imeni V.N. Karazina Series: Economic, vol. 90, pp. 97–107. [in Ukrainian]
9. Mamonova K.M. (2010). Modelyuvannya investytsiynoyi pryvablyvosti pidpryyemstv: avtoref. [Modeling the investment attractiveness of enterprises: abstract.]. 08.00.11. Kyiv. [in Ukrainian]
10. Nyeizvyestna O.V. (2016). Ohlyad novitnikh elektronnykh tekhnolohiy i analiz rozvytku suchasnoho banku [Review of the latest electronic technologies and analysis of modern bank development. Technological audit and production reserves]. Tekhnolohycheskyy audyt y rezervy proyzvodstva, T. 2, no. 6, pp. 28–31. [in Russian]
11. Popovenko N.S., Marchenko N.B. (2008). Innovatsiyni protsesy u bankivsʹkiy spravi [Innovative processes in banking]. Ekonomichnyy prostir, no. 15, pp. 99–104. [in Ukrainian]
12. Pro innovatsiynu diyalʹnistʹ: Zakon Ukrayiny vid 4 lypnya 2002 r. № 40-IV [About Innovation Activity: Law of Ukraine of July 4, 2002 No. 40-IV]. Access mode: http://www.zakon.rada.gov.ua
13. TOP nayinnovatsiynishykh bankiv Ukrayiny [TOP of the most innovative banks in Ukraine]. Access mode: https://marketer.ua/ua/the-best-innovative-banks-of-ukraine/ (accessed May 08, 2020).
14. Vidzhayarahavan T. (2014). Suchasni bankivsʹki posluhy – klyuchovyy instrument dlya bankivsʹkoho sektoru [Modern banking services – a key tool for banking sector] Mizhnarodnyy zhurnal komertsiyi, biznesu ta menedzhmentu, Issue 3, no. 4, pp. 589–594. [in Ukrainian]
15. The official site of The National Bank of Ukraine (2020). Report on the oversite of financial market infrastructures. 2019. Access mode: https://bank.gov.ua/ua/news/all/zvit-z-oversayta-infrastruktur-finansovogo-rinku-za-2019-rik (accessed May 08, 2020).
