Abstract
In the last few years participants of the banking sector in North Macedonia are facing big competition as a result of the increased innovations between these participants. The only way for banks to stay relevant with their operations is to create a sustainable competitive advantage. For an organization to hold out in a competitive environment, it needs to develop competitive strategies. One of the aspects of creating a competitive advantage in the banking sector is creating digital services. These services have a high impact on the banking sector and enable banks to have a competitive advantage in different manners. In addition to a theoretical approach to creating a competitive advantage in the banking sector, we conducted empirical research on how banks in North Macedonia create competitive advantage by offering digital services. This paper aims to describe the end-users attitude on digital banking services as well as the bank’s strategies on creating a competitive advantage by offering digital banking services.
Highlights
Competitive advantage is the value of the product or the service that an organization offers that customers value more compared to products or services from the competing offerings (Baltzan and Phillips 2010)
The descriptive method of this paper aims to describe the situation in North Macedonia, on how users of banking services consider the competitive advantage by offering digital services together with the degree of how banks aspire to create that competitive advantage by using digital services
In creating a competitive advantage in the banking sector, digital services undoubtedly have a significant impact on the banking sector and provide a competitive advantage to banks by reducing costs, strengthening the brand, improving quality and service, and cross-selling
Summary
Competitive advantage is the value of the product or the service that an organization offers that customers value more compared to products or services from the competing offerings (Baltzan and Phillips 2010). Researchers agree that the internet allows the banks to achieve competitive advantage in various ways including cost reduction (Peppard 2000), strengthening brand image (Daniel and Storey 1997), improving service quality (Delvin 1995), and cross-sale of products (De Young 2001). All of the above perspectives on creating a competitive advantage in terms of creating more value for customers, with lower costs and greater flexibility are included in the digital services of banks and the emphasis of this research is on the internet and digital services offered by banks for its customers. Table 1. presents the structure of the banking sector in North Macedonia according to the ownership structure and the revenues they generate and the percentage with which they participate in the total financial result
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