THEORETIAL BASIS AND CLASSIFICATION OF BANK BUSINESS MODELS

Abstract

This article devoted to the issue of banking business models. The negative impact of financial crises on the banking system leads to the search for new tools for risk assessment and risk management. Today banking supervision in Ukraine is based on the methodology of the Supervisory Review and Evaluation Process. In addition to assessing capital adequacy and liquidity and corporate governance, this methodology involves also assessing the business models of banks, which determines the relevance of the research of this term. Therefore, the purpose of the study is determination the theoretical foundations of the concept of business model of the bank, as well as analysis of approaches to their classification. The study investigates the main theoretical approaches of defying the essence of the term «business model of the enterprise» and «bank business model». The author proposed its own definition of the term «banking business model», which can be represented as a system of bank management elements, including business processes, resources, technologies, their relationships with each other and with the external environment. The study summarizes the approaches to classification of bank business models by both as foreign and domestic scientists. The classification of bank business models on the different criterions is offered by the author. Of most practical relevance is the classification of business models of banks by their activities (depending on the source of resources and areas of their placement) and provides for the following types: traditional model, universal model, corporate model, retail model and investment model. The change of existing business models occurs with the active introduction of information technology in banking. The article offered the classification of business models according to the level of digitalization. The traditional business model (does not involve the use of information technology), online banks (operate mainly through software interfaces), mixed business model (combines the two previous ones). The results of the study can be the basis for the development of indicators for the analysis of business models of banks, as well as the identification of business models of banks in Ukraine and identify the risks specific to each of them.