Development Of Banking Business Research Articles

ВНЕДРЕНИЕ ИННОВАЦИОННЫХ БАНКОВСКИХ ПРОДУКТОВ В СОВРЕМЕННЫХ УСЛОВИЯХ

In the global economy today, banking innovations are manifested in various forms, such as new financial products (services), new processes in the financial sector, new financial institutions. Banking innovations have a significant impact on the economy, providing an increase in the efficiency of the banking sector. The reasons for banking innovations are increased competition in the banking sector, increased uncertainty and risk in the economy, changes in consumer preferences, high imbalance in the global economy Currently the banking sector of the economy is aimed at timely changes in the conditions of external instability and the introduction of innovative banking products for profit. The article characterizes innovative banking products that act as a priority tool for a commercial bank to retain a leading position in the modern market. That is why the study of this issue seems relevant. This article analyzes the main directions of innovative banking activity, highlights the most interesting banking innovations operating in domestic banks. Modern credit organizations are the most important element of the banking system. This segment of the economy accumulates most of the monetary turnover of the state. Thanks to the ability of banks to redistribute funds, new sources of capital are being formed that contribute to the reproductive process. Commercial banks also support the national economy by creating a cash flow from the least efficient industries to the more competitive ones. Due to the current situation in the world, which literally forces all commercial organizations to continuously developе, banks are also actively trying to create new products and operations that will meet the needs of modern society. The ability to respond promptly to the needs of the population and introduce new products and tools distinguish the market leaders of the present time. The emergence of innovative banking products and technologies depends on the development of banking business. Their development and promotion at each stage of the formation of banking depends on the needs of the reproductive process and the type of economic systems. By creating new banking products, it is possible to resolve conflicts of limited resources of banks with changing needs of a potential client. The adaptation of new banking products is gradually becoming more widely used in the credit sector, since, due to various circumstances, only a few large banks have the opportunity to invest in innovations. Low capitalization of domestic banks, liquidity problems, high costs for the implementation of requirements the problem of increasing the efficiency of the organizations of the domestic financial and credit system through the adaptation of innovative banking products is identified.

АНАЛІЗ СТАНУ КРЕДИТУВАННЯ МАЛОГО ТА СЕРЕДНЬОГО БІЗНЕСУ БАНКІВСЬКИМИ УСТАНОВАМИ УКРАЇНИ В УМОВАХ ПАНДЕМІЇ COVID-19

Access to financial resources, especially through bank lending, is an important factor in the development of small and medium-sized businesses. SMEs need such lending due to lack of own funds, income instability, accelerated movement of working capital, locality of resources and narrow markets. Bank credit occupies a leading position in the formation of financial and investment mechanism for SME development. In the current crisis caused by the coronavirus, banks must ensure maximum access of small and medium-sized businesses to credit resources. With the stabilization of the financial situation and the reduction of interest rates to the level of profitability of SMEs, banks’ interest in their lending will be accompanied by increasing competition in this area of banking business development. The article analyzes the state of lending to small and medium-sized businesses by banking institutions of Ukraine in the context of the coronavirus pandemic Covid-19. It is established that during 2018-2020 there was a declining trend in the bank lending to small and medium-sized businesses due to the negative impact of the pandemic on the activities of small and medium enterprises. The rating of the best conditions for lending to small and medium enterprises by Ukrainian banks in 2021 is analyzed and bank lending programs are considered. It is noted that as a result of the introduction of quarantine in 2020 and other restrictive anti-epidemic measures to prevent the spread of coronavirus, the banking system has changed somewhat. The amount of government assistance to small and medium-sized businesses in a pandemic and the features of the state program of business support “Affordable loans 5-7-9%” are considered.

СИСТЕМА УПРАВЛІННЯ РОЗВИТКОМ БАНКІВСЬКОГО БІЗНЕСУ

The current development of the economy and the state of the banking system provokes significant changes in the functioning of banks, especially in conditions of economic and political instability. Rapid response to external and internal factors that affect the development of the banking business is the main task of the bank’s management entity. That is why the issue of management system of banking business development becomes especially significant, which determines the relevance of the chosen topic and the feasibility of the carried out research for the development of the issue. The article examines the statutes of existing Ukrainian banks and determines that the management system of banking business development is formed by three higher governing bodies of the bank that is the general meeting of the bank, the supervisory board and the bank’s board. The purpose of the article is to determine the organizational system of the bank, which is part of the overall management system of the banking business. In the process of analysis of the methods of theoretical and empirical research (system method, method of comparison, method of generalization, scientific abstraction, tabular method) and others are applied. The project of standard powers of exclusive competence of the general meeting of bank participants, the project of standard functions of exclusive competence of the bank’s supervisory board and the project of standard competences of the board for improving the internal management system of banking business development are proposed in the article. These three high governing bodies provide full management of the bank’s development. They determine the bank’s development strategy and implement it as well as control the financial condition of the bank and its compliance with current legislation of Ukraine and certain areas of development of the bank, share the full range of strategic, tactical and operational functions for managing banking development, ensuring the integrity of the management system of the banking business in general and its development in particular.

Симультативна модель розвитку банківського бізнесу

ic and mathematical modeling, the main feature of which is the use of indirect cognition with the help of artificially created objects - models. The need to use modeling as a scientific method is determined by the fact that many aspects related to these objects are almost impossible to explore, or such an analysis requires a lot of time and money. To better understand the importance of modeling the development of the banking business, it is appropriate to give an example, the development and application of the wrong strategy for the development of the banking business can cause significant problems not only in this area, including reduced liquidity of the banking system. From the tools of economic and mathematical modeling to study the development of the banking business, it is necessary to use econometric methods and models. This is because the behavior of the banking business is random. Meanwhile, econometric models are the most common type of socio-economic models used to analyze the integrated development of the banking business. Purpose. Research of indicators between variables of the semulative model of banking business development, carrying out the specification and construction of the semulative model of banking business development. Results. A semulative model of banking business development is proposed, which includes six equations: equation of capital and reserves of banks, equation of total assets of banks, equation of bank loans (except for special reserves), equation of bank income, equation of banks' costs, gross domestic product equation. The analysis of adequacy of the constructed model by means of F-Fisher is carried out. Conclusions. A semulative model of banking business development has been built and studied, which makes it possible to determine the structure of relationships between the performance indicators of the banking sector of Ukraine and environmental factors. The determining factors influencing the development of the banking business are analyzed.

WORLD EXPERIENCE IN THE INTRODUCTION OF MODERN INNOVATION AND INFORMATION TECHNOLOGIES IN THE FUNCTIONING OF FINANCIAL INSTITUTIONS

The article reveals the essence of the concept of “financial innovations” and their features. The classification of financial innovations is given. The innovative models of the Ukrainian banking business development are analysed. The innovative developments of the world’s leading banks are systematized according to the version of the annual competition for the BAI-Finance Global Banking Innovation Awards held in Las Vegas. The innovative and information technologies in the work of financial institutions in the following areas are analysed: Product and Service Financial Innovation, Channel Financial Innovation, Financial Innovation in Social and Community Impact, Financial Innovation in Internal Process Improvement. Foreign experience and features of the development of the newest innovative information technologies in the financial services market are analysed. The subject of research is theoretical and applied aspects of the development of innovations and information technologies in the functioning of world-class financial institutions. The purpose of the article is to analyse and systematize foreign experience in the development of new innovative and information technologies in the financial services market. In the research, the authors used general scientific and specific methods, including: historical-logical, dialectical, deductive, analysis and synthesis, grouping, abstraction and formalization, benchmarking, generalizations and systematization. The article concludes that in modern rapidly evolving digitalization processes, financial innovations play an extremely important role and contribute to the economic development of countries. The authors point out that banking institutions need to focus their potential as much as possible on identifying priority digital and innovative initiatives, taking into account current challenges and threats. Finally, the effective use of specific financial innovations requires in-depth knowledge of the features of their operation and careful analysis of their consequences. The authors recommend the use of a cross-functional approach, which provides flexibility and the ability to transform change over time and is an important element in the process of implementing financial innovations. Taking into account the experience of leading banking institutions that actively implement innovative developments, the authors note that along with the benefits, financial innovations can cause new challenges and threats for all participants in this process. Researchers have shown that radical innovation can displace a dominant business model or technology and create a new market. According to the results of the analysis of innovative developments of banks around the world for the period 2015-2019, the authors found that financial innovations have changed their nature and are based on the latest digital technologies.

ОСНОВНІ СКЛАДНИКИ МЕХАНІЗМУ УПРАВЛІННЯ РОЗВИТКОМ БАНКІВСЬКОГО БІЗНЕСУ

The article reveals the peculiarities of the functioning of the mechanism for managing the development of the banking business and identifies its main components. Based on scientific approaches, it was found that the mechanism of managing the development of banking business is a mutually agreed set of methods, tools and levers used in the management of the bank to effectively organize its operation, which will promote the bank's development and greater profits. The division of banking management methods with the principle of division of the object into administrative, economic, socio-psychological and legal, which is followed by most scientists in the field of management allowed to propose a classification of management methods of banking and divide them into financial and non-financial. This approach allows you to show where and how to apply financial influence on the development of the banking business. To ensure the achievement of goals, as finance is the main object of management and a source of profit and risk. A certain component of the mechanism for managing the development of banking business, along with methods of managing the development of banking business are tools that are defined as means of certain forms of information that confirm monetary or other rights or obligations and have legal form and are used by the bank to operate effectively. profit. A clear division of banking business development management tools into three groups is proposed, namely payment (payment card, payment order, promissory note, account and others); financial (loans, deposits, securities, bank guarantee, interest rate, reserves and others); legal (bank charter, orders of the head, instructions, letters of instruction and others). Substantiation of the mechanism of management of development of banking business in the course of research has allowed to define levers of management of development of banking business as its integral component as it is set of economic means which the bank uses in the course of the activity for effective organization of its functioning by creation of favorable conditions. and tasks that will contribute to the development of the bank and its greater profits. The levers for managing the development of the banking business are divided into three groups: economic levers; organizational; social.

ВЛИЯНИЕ ПАНДЕМИИ КОРОНАВИРУСА НА БАНКОВСКУЮ СИСТЕМУ РОССИИ

The article deals with the current topic of the development of the Russian banking system in the context of the coronavirus pandemic. The current state of the banking sector and the activities of individual credit institutions are analyzed. The threat of a pandemic impact on the state’s banking sector is being studied. Taking into account the current situation, problems arise in the activity of banks, including the lack of full communication between credit institutions and customers– one of the most important factors in the development of banking business. It is quite difficult to operate remotely — most businesses are based on personal communication between employees and customers. The main problem and difference between the current situation and past crises is not the economic nature of the current crisis. Therefore, it is quite difficult to assess its progress and the consequences of the pandemic. The situation will depend on how widespread the COVID-19 pandemic is and how the authorities will respond to it. The consequences of a pandemic are unpredictable in their duration and impact. It is obvious that the country is waiting for a drop in production and this is a serious blow. How fast the economic recovery will be depends on the duration of the pandemic. The measures taken by the government to support the population (issuance of zero loans and registration of credit holidays, etc.), today will cause damage to the banking sector by about 400 billion rubles. If we take into account last year’s net profit of the country’s banks, which amounted to 1.7 trillion rubles, the banking system will withstand this blow. The main risk for banks will be non-repayment of loans by businesses, deterioration of the loan portfolio. This may lead to a crisis in some sectors of the economy, whose enterprises are borrowers. According to the most negative estimates of experts, the losses of the banking sector may amount to about 900 billion rubles. The crisis triggered by the coronavirus pandemic will be felt by the country’s banks in the next six months. Banking organizations will need financial support from the state. Some financial institutions will not survive without state aid. In the current situation associated with the COVID-19 epidemic, banking organizations are still only underperforming. After the pandemic, the country’s banks, as well as their clients, will find themselves in a new reality. The economic situation in the country will be different. Entire sectors of the economy may be transformed. Some banking organizations will close, and the remaining financial institutions will develop remote services, which they switched to during the coronavirus period. It is quite difficult to predict what will happen to the rates of loans and deposits and the ruble exchange rate. This depends on many factors. One thing is clear-the world will not be the same.

МАРКЕТИНГОВЕ УПРАВЛІННЯ РОЗВИТКОМ БАНКІВСЬКОГО БІЗНЕСУ

The consequences of the pandemic and the fall of the world economy will negatively affect the functioning of the banking system. Banks were not ready for such changes. The issue of developing and using effective marketing management strategies for the development of banking business is relevant. The main tendencies and features of marketing management of banking business development are considered in the article. Based on the research of scientists, the concept of marketing management of banking business development is generalized and it is determined that these are purposeful actions of management entities on the activities of the bank to regulate its position in the financial market through marketing activities. It was found that the economically developed countries of the world have accumulated considerable experience in marketing the banking business. New marketing tools and Internet platforms provide unique opportunities for the development of the banking business to expand the customer base and to study its views on the advantages and disadvantages of the proposed banking products. It is determined that banks actively use communication channels within the bank, in particular digital merchandising - a modern powerful information and advertising tool. Based on the results of the study, marketing management strategies for the development of banking business and ways to implement them were formed. Marketing management strategies for the development of banking business are aimed at strengthening the image of the bank and the sale of banking products, the impact on the consumer, as well as the intensity of the process. An important component in the marketing management of the bank is the internal organizational process, which operates on the basis of marketing strategies for the development of the banking business. Based on the results of the study, the authors proposes marketing management strategies for banking business development in such areas as strategies to strengthen the bank's image and increase sales of banking products (integration, promotion, promotion), consumer impact strategies (presentation, psychological), strategies depending on process intensity (active, passive).

Innovative Thinking on Development of Internal Audit of Commercial Banks in the New Era

In the new era, Internal audit of Commercial Banks is facing more risk challenges, This paper analyze the difficulties and shortcomings encountered by internal audit in the process of innovation development, On the one hand, Internal audit function is facing unprecedented challenges, with arising business involvement and regional cooperation, cross-business and cross-region risks are growing even complex, the regulatory requirements turning much strict by enhancing comprehensive supervision on more penetrated aspects, together with the self strategic transformation of commercial bank. On the other hand, Internal audit encountered more difficulties, with limited information and communication from the regulators, talents needs to be improved both structurally and professionally, concepts and methods is on the urgent need of upgrading. This paper also explores the development direction and ideas of internal audit to actively respond to complex risks and regulatory changes, further clarifies the path of internal audit to promote innovative development in the future period, and realizes mutual promotion and effective integration of risk prevention and control with the function of internal audit by exploring more paths for internal audit to realize concurrent innovative development, finding more methods for self improvement in order to meet the fast development of banking business, building a strong mechanism for system standardization and team operation.

Corporate management in the banking sector of the national economy: problems and solutions

Current trends in the development of Ukrainian banks are associated with the intensification of financial globalization processes. Under the influence of the growing presence of foreign capital, Ukrainian banks have faced increased competition and an exacerbation of the problem of limited financing in the domestic market. In the open national market, banks are forced to look for competitive advantages in order to improve access to financial resources and implement effective long-term partnerships with foreign investors. The creation of quality corporate management under international standards is an important advantage for the investors. The need to increase the level of corporate management according to the best international practices determines the importance of the investigation and substantiation of the areas for improvement based on the analysis of internal factors and conditions of banking business development. Conflict of interest is a major problem of corporate management. The investment community, professional circles, as well as regulatory authorities of the countries pay great attention to the problems of organizing relations of companies and banks with shareholders and other stakeholders. There are some approaches to determining the range of stakeholders. Managers and shareholders are considered in the narrow sense. In the broad sense, the list can include all the possible stakeholders. High quality of corporate management is one of the key conditions for bank efficiency. The interests of the owners are completely consistent with the achievement of high profitability, which is the main criterion of efficiency. In turn, the requirements of creditors to the level of risk on the operations of the credit institution is largely the factor of its sustainability in the long run. The ways of solving problems of corporate governance in banks are proposed in this paper. The theoretical foundations of corporate management in banks are substantiated. The specifics of the organization of relations between the participants of corporate relations in the bank are highlighted. It is noted that many issues related to corporate management in credit institutions lie outside the legal system and are ethical rather than legal.

ОСОБЛИВОСТІ МОДЕЛЮВАННЯ ТА ПРОГНОЗУВАННЯ РОЗВИТКУ БАНКІВСЬКОГО БІЗНЕСУ В УКРАЇНІ

The rapid dynamics of financial performance of banks leads to the study of the peculiarities of modeling and forecasting the development of the banking business. The negative trends of the global crisis and the spread of the pandemic are determined by the search for ways to maintain the efficient functioning of banks in the financial market. Modeling and forecasting the development of the banking business should be carried out using the tools of economic and mathematical modeling, the main feature of which is the use of indirect knowledge with the help of artificially created objects – models. To better understand the importance of modeling the development of the banking business, it is appropriate to give an example, the development and application of the wrong strategy for the development of the banking business can lead to significant problems not only in this area, including reduced liquidity of the banking system, increased problem loans, increased risk. The model of banking business development is built, which includes six equations on the main macroeconomic indicators (equation of capital and reserves of banks, equation of total assets of banks, equation of bank loans, equation of bank income, equation of bank expenses, equation of gross domestic product of Ukraine). Links between the performance of the banking sector and environmental factors, to analyze the factors influencing the development of the banking business, to forecast the dynamics of these indicators in different scenarios of economic conditions in general and the banking business in particular. The analysis of the obtained results of evaluation of the equations of the simulative model of banking business development for 2020 allowed determining that each equation of the simulative model is adequate, because the coefficients of multiple determinations take values that are close to one, including exogenous variables. To obtain the forecast values of other exogenous variables of the simulative model (the value of direct investment in Ukraine and the volume of sold industrial products) was used the method of constructing trend models, which describe the dynamics of a particular indicator (variable) over time. The forecast values of exogenous variables of the simulative model of banking business development for the I–IV quarters of 2022 are constructed. The analysis of forecast accuracy indicators showed that the value of the average absolute error (MAPE) of the amount of capital and reserves of banks in 2022 does not exceed 10% for neutral and optimistic forecasts.

Circumstances for Committing Crimes in the Banking Sector: Normative and Legal Aspect

The historical way of the development of banking business and the state of its legislative provision, which had an impact on criminal behavior in this area, has been studied. It has been noticed that the responsible officials of banking institutions, due to their high level of education, skillfully used gaps or contradictions in the legislation for the useful purposes of illegal enrichment. They quickly adapt to amendments in normative and legal regulation and invent new schemes of criminal technology.
 The key factors in the situation of committing crimes in the presented area are: search for opportunities for criminal enrichment by using existing powers; conspiracy of officials of commercial banks with representatives of supervisory agencies (curators from some units of the National Bank of UKraine) in order to cover up criminal activity; development of a plan of financial fraud with representatives of commercial organizations in order to steal the entrusted funds and their further legalization. Typically, such criminal “associations” try to have long-term relationships under the guise of corrupt relations with supervisors and banking secrecy in order to systematically generate illicit proceeds. In case of the risk of detecting criminal schemes, the banking institution may be brought to bankruptcy, which is used as the method to hide traces of criminal activity.
 Analysis of the impact of regulatory factor in the context of committing economic crimes in the banking sector is a perspective and relevant area of further research. In this regard, the development of the doctrine of forensic forecasting in conditions of instability of processes in the economy in its individual segments (lending, currency regulation), weak control over the conduct and accounting of banking transactions, etc. is of great importance.
 Equally important is the development of cooperation between law enforcement agencies involved in the fight against crime in the banking sector, with the units of the National Bank, the State Fiscal Service and financial monitoring; the improvement of the methodology of conducting certain types of examinations, etc. Provisions for such cooperation are enshrined in law and are in force, but some need to be revised in the light of central government reforms.

The Credit Card's Limitations and its economic impacts

The development of banking business and its interdependence in economic life led to the recovery and facilitation of many things, transactions, financial, purchasing and commercial since the issuance of thecredit cards which is one of the most important activities of banks and financial institutions. Our discussedtopic which is about the credit card has played a major role in the development of banking business and itsinterdependence in economic life, as well as the fact that dealing with the credit card is one of the commonthemes between Law and economics. Towards the most important economic effects, both positive andnegative, resulting from the use of this card

Wealth Management is a Promising Area of Banking Business Development

Wealth Management is a Promising Area of Banking Business Development

COMPETITIVENESS OF BANKS IN THE MODERN CONDITIONS OF FINANCIAL MARKET DEVELOPMENT

The article carries out the comparative analysis of the basic approaches to the choice of competitive strategies of banks. The aim of the paper is to substantiation of theoretical and methodical principles of banks' competitiveness in the current conditions of financial market development.The factors that affect the level of competitiveness of banks are determined. The authors of the article classifies them into factors that cause structural imbalances in the economy, factors of macroeconomic and microeconomic functioning of banks.Competitiveness of banks can not be considered without the competitiveness of their products and services. Between them there is a close relationship, they determine the development of each other.The authors of the article prove that banking competition differs from classical competition between commodity producers. These differences are: the object of banking competition is not goods, but the resources that the bank generates to carry out active operations; in banking market, banks can act as a seller, not only the buyer; the implementation of banking services may be carried out within the bank without the involvement of external sales channels; the situation of competition arises not only between banking institutions, it is also connected with the activities of non-banking financial institutions; the activities of banking institutions are strictly regulated by the National Bank of Ukraine. Modern conditions of functioning of the banking market testify to the necessity of development and introduction of strategic management of bank competitiveness, development of new methods of formation and implementation of competitive advantages and strategies. Development strategies need to be developed taking into account uncertainty, they should be as flexible as possible and provide for the possibility of realizing banking risks. Thus, it can be construed that the current state of development of banking business is accompanied by crises occurring both in the economic and financial spheres of the country; therefore, ensuring the competitiveness of banks must first of all be based on the development of effective, convincing messages for investors, clients and employees. The main actions of banks that make it possible to present their competitiveness should be this: ensuring financially sustainable development; the protection of the existing own banking business is the elaboration of a contingency plan; work on the prospect.

Comprehensive assessment of risk-factor in the modern conditions of banking business development

Comprehensive assessment of risk-factor in the modern conditions of banking business development

Integrated Marketing and Customers’ Decision Saving Funds in Islamic Banks

Indonesia has a good market potential for Islamic banking business development. However, the market share of Islamic banks is still far behind the conventional ones. Over 5 years, Islamic marketing mix has been integrated with the contemporary marketing mix. This article prudently examines the decision of society to invest their funds in Islamic banks dealing with the integrated marketing mix. Questionnaires had been distributed to 150 respondents of Islamic banks customers. Using analysis of Structural Equation Modeling based on variance (SEM-PLS), this article shows that the integrated marketing mix has taken an influence on customer purchasing decisions, consisting of pragmatism and product, pertinence and promotion, persistence and process. Keywords: SEM-PLS, Islamic banking, integrated marketing

KEY TRENDS IN EUROPEAN RETAIL BANKING AND PROSPECTS FOR THEIR DEVELOPMENT IN UKRAINE

The modern banking sector of Ukraine is subject to technological influences from the financial services market of Western Europe. The article identifies key strategic directions for banking business development in the conditions of rapid technological change and transformation of the financial service consumption model. The study aims to identify the modern tendencies in banking and the prospects for implementing separate models and instruments in view of the realities of the domestic retail banking practice. The study reveals the main principles of building customer-oriented strategies in European banking. The author studies practical aspects of using new information technology as a marketing tool in the context of sales growth in the retail banking sector. In having performed the analysis of the world experience and its impact on the marketing models of domestic banks, the author identifies and suggests main directions for further development of the domestic banks that are focused on providing services to private individuals and population in general.

THE DEVELOPMENT OF THE DIGITALIZATION OF BANKING SERVICES IN KAZAKHSTAN

Development of a didzhitalization of bank service in Kazakhstan, in particular Internet banking and mobile banking are modern trends of digitalization of the payment industry, having growth potential observed in foreign practice on the example of functioning of digital banks. Transition to digital business models of banks is connected with a long-term outlook of development of banking business in conditions of new calls and threats. Active development of digital technologies led to change of business models of rendering services within implementation of the state program «Digital Kazakhstan». Remote channels of bank service have a set of advantages before traditional granting banking products. On the other hand, it is necessary to provide the high level of informationsecurity of banks for prevention of cyberthreats. In this regard in Kazakhstan the National Bank of Kazakhstan accepted the Strategy of cyber security of the financial sector of the Republic of Kazakhstan for 2018-2022.

O. Kalinin, H. Papush, Neuromarketing as a factor of financial services investment attractiveness.

The article describes a modern combination of marketing methods for studying the behavior of customers - neuromarketing. In order to determine the essence of neuromarketing, an analysis of the scientific works of scientists was conducted, which proved that neuromarketing is a part of marketing, which covers the study of unconscious processes of a person and the effect on the human brain. A new concept of “ neuromarketing banking ” has been derived, which includes a symbiosis of the main elements of neuromarketing and financial services. The t ypes of neuromarketing are defined: the psychology of color, atmosphere, aromamarketing, sound design. In order t o study the methods of introducing and using the neuromarketing in financial and banking institutions, the analysis of banks by profitability was provided . According to the survey, Raiffeisen Bank Aval ranked as the first one in terms of profitability in 2017. The analysis of the psychology us age of color in promot ion of financial services. The techniques of aromamarketing that are the most effective in the activities of banking institutions are highlighted. It is proved that the emphasis make on the psychology of color in modern conditions of the financial - banking business development. As a result of the analysis, the direct connection of colors and their application in the design of financial and banking institutions, the creation of an atmosphere, which is expressed in the selection of light, music, planning, as well as the emphasis on aroma marketing were reflected. Aromatization of the airspace with certain flavo u rs is directly proportional to customers attraction and creati on of a favorable atmosphere. Audio marketing is successful in using it outdoors or using properly selected loudness when it comes to waiting rooms that are accompanied by queues. Thus, supporting competitiveness in the market, increasing the number of clients of financial and banking institutions, is directly proportional to the strategy they have developed to implement and use neuromarketing.