Digital Bank Research Articles

ANALYZING THE USES OF DIFFERENT TYPES OF DIGITAL MARKETING TOOLS OF BANK: A STUDY ON A COMMERCIAL BANK LTD

Nowadays, business activities are drastically changing their services through using technology. Moreover, the banking activities are performed in a digitalized way where the customers get better services through online services. Digital marketing is the medium of the internet, mobile devices, social media, search engines, and other electronic devices to reach consumers. Through using digital technology banks perform billions of transactions to reach the customers in this current competitive market and it helps them to make it easier and shorter and more comfortable. The main objective of the study is to analyze the uses of different types of digital marketing tools of of a private commercial bank limited. This study was quantitative and exploratory in nature. A non-probability convenience sampling method has been used in this study and the employees and experts of private commercial bank limited were the population. Primary data have been used where the primary data were collected from respective respondents through survey questionnaire. The sample size was 100 and Five-point Likert scale has been used where (‘1=strongly agree’ and ‘5= strongly disagree’) in this study. The findings of the research suggests that using digital marketing tools are more effective than any other traditional marketing tools in the bank.

Implementasi Trade Facilitation Agreement Sebagai Reformasi Perekonomian Di Indonesia

The most crucial barriers to international trade take the form of administrative barriers. Therefore, the presence of the Trade Facilitation Agreement (TFA) aims to remove these administrative barriers, thereby facilitating international trade. This study analyzez the implementation of TFA as a reform of the Indonesian economy. The research method used is normative legal research, by examining legal data sourced from literature as the secondary legal materials or literature related to the topic of this research. The results of this study concluded that after Indonesia’s ratification of the TFA, it was able to increase exports and reduce trade costs. This is due to the nature of TFA as a multilateral agreement among WTO member countries and affects the increase and optimization of trade procedures. Thus providing access for MSMEs to contribute to international trade and reducing trade costs incurred by business actors. After the ratification of TFA through Law Number 17 of 2017 on Ratification of the Protocol to Amend the Marrakesh Agreement on the Establishment of World Trade. The policies issued by Indonesia include one single submission (OSS), reduced container storage period (dwelling time), simplification of licensing, NLE, Digital Bank.

Investigating the role of Fintech in the banking industry: what do we know?

PurposeIn recent years, the penetration of digital technologies in the financial industry determined the arising of Fintech, which generated a dynamic and rapid change that business operators and supervisory authorities in the banking industry are struggling to follow it. This is especially due to issues affecting financial intermediaries and customers, and potential risks of stability of the financial system. The aim of this paper is to provide a review of Fintech in the banking industry thus to update the knowledge about technology innovation in the banking sector, identify the major trends in the domain and delineate future research directions.Design/methodology/approachThe study reviews 377 articles indexed on Scopus from 2014 to 2021 that focus on Fintech and the banking industry. The methodology adopted is structured in two steps: the keywords selection and the analysis of the documents extracted. The first step identified “Fintech” and “bank” as keywords to be searched within the title, abstract or keywords of documents indexed on Scopus; whereas the second step combined R and VOSviewer to provide a descriptive analysis of the dataset and the analysis of keywords and occurrences, respectively.FindingsResults achieved in the study allow providing a systemic view of the Fintech in the banking industry, including the emergent phenomenon of digital banking. In particular, it is provided with a general overview and descriptive information on the entire sample of documents analyzed, their authors, the keywords used and the most cited works. Besides, a deepening on the model of digital banking is provided, by delineating the six dimensions of the key effects generated by the digital bank model.Originality/valueTwo main elements of originality characterize this study. The first one is related to the fact that few review studies have been published on Fintech in the banking industry, and the second one concerns the multiple dimensions of the impact of Fintech in the banking sector, which includes customer, company, bank, regulation authority and society.

Are Neo Banks the Future Disruptors of Banking in India –A Perspective

As digital achieves new high, technological innovation has significantly shaped the banking and financial sector, giving rise to fully digital banking services. Providers of these services referred to as Neo banks also termed as digital banks, internet banks and online banks, aim to be more accessible and innovative than traditional banks, usually operating from an app rather than with a physical branch or office. Although some of these providers may seem like a bank— and have even named themselves as such—many lack the required charters, oversight, and range of bank services and thus are merely bank-like. Nevertheless, they have sought to disrupt the traditional banking model by offering financial services in ways that appeal to different groups of consumers. Globally, many large banks have started reducing their branches. In India too, many banks have rationalized their branches and partnered with new-age Neo banks for seamless customer acquisition and product offering. Keeping this in view this conceptual paper highlights the role played by prominent Neo banks in India and their implications towards the traditional banks and Challenger banks in steering them to go forward towards the futuristic digital banking operations. It also touches on the need, mode of operations and services through digital and online offered by Neo-banks, and which were of immense use especially in a pandemic situation like COVID-19.

The digital ecosystem risk in digital banking: A case study

Rapid technological development encourages disruptive innovation that transforms the concept of the value chain into a digital ecosystem. Companies can leverage the resources of other companies as part of their value chain, without having to own them. It can generate greater risk due to external factors that cannot be controlled directly. Digital Bank Z is a digital bank with a large business ecosystem transforming from Book Bank I. They need to address these potential risks through good risk management while digital banking expansion in Indonesia is increasing rapidly. This case study aims to obtain an evaluation of how the digital transformation and risk management held by Digital Bank Z as well as to produce the conceptual framework for digital ecosystem risks. This qualitative research conducted semi-structured interviews as triangulation with informants from Digital Bank Z and Financial Services Authority or Otoritas Jasa Keuangan (OJK). Digital transformation produces competitive advantages for Digital Bank Z through higher interest rates, but the regulator cited, “digital bank is not a disruptor or competitor”. Recently, risk management is more focusing on operational risk due to no specific regulation of digital banks yet. As recommendations, the conceptual framework provides three stages to identify the risk of collaboration and the digital ecosystem.

Sentiment Analysis on Customer Satisfaction of Digital Banking in Indonesia

Southeast Asia, including Indonesia, is seeing an increase in digital banking adoption, owing to changing customer expectations and increasing digital penetration. The pandemic Covid-19 has hastened this tendency for digital transformation. However, customer satisfaction should not be left unmanaged during this transition. This research aims to obtain customer satisfaction of digital banking in Indonesia based on sentiment analysis from Twitter. Data collected were related to three digital banks in Indonesia, namely Jenius, Jago, and Blu. Total of 34,605 tweets were collected and analyzed within the period of August 1st 2021 to October 31st 2021. Sentiment analysis was conducted using nine standalone classifiers, Naïve Bayes, Logistic Regression, K-Nearest Neighbours, Support Vector Machines, Random Forest, Decision Tree, Adaptive Boosting, eXtreme Gradient Boosting and Light Gradient Boosting Machine. Two ensemble methods were also used for this research, hard voting and soft voting. The results of this study show that SVM among other stand-alone classifiers has the best performance when used to predict sentiments with value for F1-score 73.34%. Ensemble method performed better than using stand-alone classifier, and soft voting with 5-best classifiers performed best overall with value for F1-score 74.89%. The results also show that Jago sentiments were mainly positive, Jenius sentiments mostly were negative and for Blu, most sentiments were neutral.

Криминологический анализ современного состояния мошенничеств в банковской сфере России

Introduction. The study of fraud in the banking sector of Russia is relevant, since the development of the banking system in general, and digital banks, in particular, the transition to remote banking services and the use of modern banking technologies by the part of the population that used traditional payment methods, significantly expanded the opportunities for making fraudulent activities in the area in question. Target. Analysis of the trends in the development of these crimes, changes in their level and structure, methods of commission, as well as the prevalence in the regions of the Russian Federation, which will allow developing a system of adequate measures to counter such activities both on the part of law enforcement agencies and on the part of banks. Methodology. The methodology included theoretical and empirical analysis, a comparative method. The methodology was compiled by statistical analysis and the study of criminal cases. Results. The results of the study indicate that the dynamics of the level of fraud in the banking sector is extremely unfavorable, and among other forms of theft, this type of crime is developing most actively. At the same time, this type of fraud in absolute terms, both now and in the future, will dominate in the European part of Russia, while the growth rate of the crimes under consideration is higher in the Siberian and Far Eastern regions. In the general structure of frauds registered in the Russian Federation, every 10th fraud was committed in the banking sector. In the structure of fraud in the banking sector, the largest share (80 %) are fraudulent activities using electronic means of payment; in recent years, the use of genuine cards or their details stolen from their owners by means of “social engineering” methods has dominated in their commission. In the field of lending in 2020, every second fraud was committed with the provision of deliberately false documents (49.9 %), while the total share of these frauds decreased during the study period by a factor of 5. Conclusion. Criminological analysis showed the need for active counteraction to fraud in the banking sector. Taking into account the methods used to commit fraudulent actions, special attention should be paid to victimological prevention.

Development of mechanism for dissemination of managerial experience of principals of general education system schools

The article updates the issue of developing the mechanism for disseminating the professional experience of managerial personnel, their main motives and incentives for gaining the experience in order to enhance the effectiveness of the functioning of educational organizations by improving the quality of management decision-making. The significance of this research rests in the provision of the updating in the professional knowledge, skills, abilities and competencies of school principals that are determined by the federal project ‘Modern School’ within the national project ‘Education’. Professional competencies of school principals are emphasized. The authors present the conceptual apparatus of the thesaurus of dissemination of managerial experience. The concept of the development of the mechanism of dissemination of managerial experience through the differentiation of the skills of school principals for the allocation and analysis of managerial competencies in order to enrich the content of additional professional programs with the best management practices in the general education system is determined. The functional interrelation of the structural elements of the mechanism of dissemination of managerial experience of school principals is presented, functional tasks aimed at creating a digital bank of managerial cases based on the use of the skills of school principals to solve situational problems in the management of an educational organization, to develop a digital ecosystem of the further professional education and certification procedures for managers of educational organizations of general education are described. The results of the research are the foundation for the development of the methodological recommendations for the differentiation of the school principals’ skills for the assessment of their managerial competencies, aimed at the dissemination of the managerial experience of the target audience, the exchange of experience and best managerial practices.

DIGITALIZATION – DIGITAL TRANSFORMATION OF BUSINESS PROCESS IN CREDIT SYSTEM

The article discusses the key aspects of banking-credit sector development in digitalization conditions, which is expresses in the trends of digital development in banks, the changes of business process, banking products and services, their ecosystem services and development models under the influence of digitalization. The local and foreign assessment and analysis of the best practices in the use of modern digital technologies in the planning, monitoring and evaluation of governance decisions gave us the opportunity to formulate proposals and recommendations in relation to the priority direction of the use of digital technologies, in the framework of the further adoption of management principles and procedures according to the results. The research conducted based on the secondary data found by us determined that the digital transformation of the environment and business processes will be the main direction of development of any business (including banking and credit business).Moreover, the development of the banking system based on the use of innovative (digital) technologies provides opportunities for solving many problems, for example, penetrating technologies as artificial intelligence, Blockchain, P2P lending, will accelerate the implementation of technological calculations, increase the speed of banking operations, increase the accuracy of calculations, reduce reporting risk of intentional data distortion. We used the methods of analysis, modeling and analogy when setting and solving problems. As a result of the study, the concept of digital bank was defined, the problems of using digital technologies in the banking sector (both in general, and specifically at the level of the national economy) and prospects were identified, and the main directions for achieving success in the digital transformation of business and business processes in the banking institution were proposed, which should be used in our country. It will bring quite a solid result for the banking-credit system in the short term.

Українська воєнна криза як частина глибинного світового трансформаційного процесу: фінансові механізми стабілізації та відновлення

The article is aimed at characterizing the modern crisis caused by the Russian-Ukrainian war as part of the profound world transformation process, and theoretical-methodological substantiating of the financial mechanisms for stabilization and recovery of the Ukrainian economy. As a result of the carried out study, it is shown that the current crisis in Ukraine is a component of the global transformational transition against the background of the formation of the information and digital economy. On the surface of economic phenomena, this transition is presented as: destabilization as result of the conflict adaptation of the networked person and the social simplification of the classical market entity; the clash of the fading liberal model of the world order and the beginnings of a new digital society; the crisis of globalization and localization. The stages of the unfolding crisis of globalization and localization are the following: the global financial and economic collapse of 2007-2009, the COVID-19 pandemic of 2020-2021, the stage of maximum entropy during the Russian military aggression against Ukraine in 2022. In the context of the crisis of globalization and localization, the role of the State-owned institutions is growing, which absorb global fluctuations and take maximum responsibility for themselves, creating risks for the formation of authoritarian societies. Simultaneously, with the crisis uncertainty growing, this is the most likely option to ensure relative stability and consistency. Financial mechanisms for stabilization and recovery of the Ukrainian economy should be implemented on the basis of the use of digital technologies to ensure supply and demand through the introduction of digital currency, the institution of unconditional income, the development of programs for automatic assistance to small and medium-sized enterprises in the context of crisis, the creation of financial development institutions in the format of a digital bank. Digital technologies will increase the risks of final leveling of market principles of economic activity and cause excessive overregulation, so further research in this direction will be focused on minimizing the risks of totalitarianization of the financial space in the digital economy.

ПЕРСПЕКТИВИ ВИКОРИСТАННЯ ХМАРНИХ ТЕХНОЛОГІЙ ДЛЯ ЦИФРОВИХ БАНКІВ

This article examines the current state of cloud solution adoption across banking industry. While the advantages of using cloud are clear, this process introduces new challenges and risks. Considering security as the most important obstacle to cloud adoption for bank institutions, it's highlighted the specific of operation cloud models more suitable to meet the needs of digital banks. The reasons for migration of core workloads to the cloud are also outlined. It reflects the increasing impact of cloud technology on the modern business models across banking industry in the new digital economy.

디지털 전환시대의 지역금융기관 경영전략: BNK금융지주 사례를 중심으로

Local banks play a very important policy role in that they are the starting point for regional economic development. Therefore, the academic review on the survival and growth of local banks is urgent and important. To ensure local banks‘ role in the digital financial era, this paper presents a practical strategy for the survival of local banks using BNK Financial Group as a case. Specifically, we suggest a strategy of reorganizing the existing Busan Bank and Kyongnam Bank into a two-bank system of BNK Bank and BNK Digital Bank to compete with big commercial banks and Internet-only banks. This study also proposes a two-track marketing model for BNK Bank and BNK Digital Bank respectively: (1) securing existing customers through positioning as a new top 5 commercial bank; (2) penetrating new customers with the co-operation of tech companies such as NC Soft and NAVER.

ANALISIS PENINGKATAN SHARING KNOWLEDGE BEHAVIOR PADA PERUSAHAAN MELALUI MANAJEMEN PENGETAHUAN UNTUK PENINGKATAN KEMAMPUAN INOVASI INDIVIDU

This study aims to analyze the increase in knowledge sharing behavior in companies through knowledge management to increase individual innovation abilities. This study uses a qualitative type of research with a case-study approach that focuses on individual units within the company. The study was conducted on two digital banks in Indonesia. The analysis was used to test the suitability between resources, the data analysis used the triangulation method and the data presentation was carried out using the descriptive method. Based on the results of research and analysis, it can be seen that bank company X and company bank Y have implemented KSB with formal and informal techniques. However, informal techniques have a direct positive impact on increasing the quality and innovation capacity of individuals, which in turn can make a positive contribution to the company's new services and products in accordance with market demands that are changing rapidly due to technological disruption.

The digital bank: Has it come of age?

Digital banking for incumbent banks can be challenging given the difficulties with organisational fit, cultural construct, people skills and legacy systems having to coexist with the new way of doing things. But it is also a tremendous opportunity to build a world-class digital experience and to take the bank’s reputation as a solid and trustworthy brick-and-mortar institution that will stand behind its digital transactions, especially in a world where physical interactions are severely impacted by the COVID-19 pandemic. This paper discusses how the convergence of artificial intelligence, machine learning, computational power and data abundance creates the perfect ecosystem to deliver a compelling digital banking experience. It outlines how it is imperative for banks to invest smartly over the next few years in their infrastructure as part of their digital banking strategy so that customers who choose to conduct their banking services at a physical touchpoint can also have a state-of-the-art service experience.

What digital banks can learn from decentralised finance

Although digital banking has improved upon the traditional banking model, it could do more to revolutionise modern finance. Decentralised finance (DeFi) looks to make banking more accessible and more flexible for today’s global population. Banks should look to DeFi to discover ways to improve their own offerings. In this paper we outline the elements of DeFi we feel would be most beneficial if they were incorporated into digital bank offerings and what the potential benefits could be.

The ascent of digital banks in the Gulf region: Prospects and challenges

This paper provides a practitioner’s and academic’s perspective on the impending challenges faced by the Gulf banks from the growth of FinTech and technology disruptors in the region. The authors provide a comprehensive view of the approaches taken by the banking industry in the Gulf to face these new challenges, including the support provided by their governments. The paper describes three dominant approaches taken by the banks in the region on the digital banking front. As practitioners and academics, the authors provide their recommendation through their four-corner strategy of action points that the Gulf banks should adopt in order to successfully overcome ongoing challenges posed by FinTech’s and technology disruptors and to stay relevant during this period of changing consumer behavioural patterns led by technology disruption and growth.

Open banking in Europe: The effect of the Revised Payment Services Directive on Solarisbank and Insha

The concept of open banking is gaining global recognition for helping to integrate innovative financial service providers into a sustainable financial ecosystem. This paper discusses open banking, including its core building blocks, prospects and challenges. Given the European Union’s pioneering role in adopting open banking regulations, the paper also reviews the revised Payment Services Directive (PSD2) and its role in advancing fast payment systems in Europe. The paper goes on to consider the practical implications of the PSD2 in Germany through case studies of the banking-asa-service platform, Solarisbank, and the Islamic digital bank, Insha. Finally, the paper sheds light on the benefits of open banking for ecosystem stakeholders, including fast payment system providers, and how they can benefit from the introduction of open banking regulations.

Possibilities and constrains of crowdlending platform development

Subject. The article addresses crowdlending platforms as an alternative way to invest resources. Objectives. We focus on identifying opportunities and limitations for the development of crowdlending platforms. Methods. The paper draws on the systems analysis tools. It also applies a structure-behavior-result (SBR) model, which enables to characterize the external environment of crowdlending platforms to identify their opportunities and constrains. Results. We identify opportunities and limitations of stakeholders involved in the development of crowdlending, including investors, borrowers, operators of digital platforms, the State and banks. The paper shows that both the demand and supply for the development of crowdlending are created. However, the main limitations in the development of this type of activity are associated mainly with institutional factors. Transparency in the activity of crowdlending platforms will mitigate risks, increase the level of trust of owners and users of resources. The improvement of legislation in this field will help preclude misconduct of economic agents in using this tool. Conclusions. The findings can be used by federal and regional authorities in strategy implementation for the development of small and medium-sized businesses in the Russian Federation, as well as by bodies of legislative power in the development of regulatory framework for collective investment tools dissemination in Russia.

DIGITAL BANKING AND E-COMMERCEIN THE CONTEXT OF DIGITALIZATION OF BUSINESS MANAGEMENT

Abstract. The article considers the growing trends and specifics of digitalization of the banking sector. The main directions of digital transformation and the emergence of new financial market players due to the institutionalization/symbiosis of traditional banks with technology firms are studied. It is noted that this process can have far-reaching and ambiguous consequences and threats, such as moving away from the model of perfect competition and transition to platform-based competition, monopolizing markets by displacing some firms and creating favorable conditions for others, financial and reputational risks for banking structures, which provide payment cards, increase advertising prices, etc. The identified problems of traditional (classical) banks — sluggishness, impossibility of prompt adjustment of strategies, the use of outdated development tools, in particular, the closure of branches and the use of outdated technologies, loss of control over the payment system;the thesis is substantiated according to which the mechanisms of their functioning and management need cardinal corrections and innovations, first of all in approaches to interaction with clients and realization of e-business. Outlined strategies for the operation of new digital banks — the introduction of digital operations with a focus on efficiency, accessibility, transparency and consumer protection, increasing competition with traditional banks with the acquisition of customers of the latter.The consequences and prospects of the arrival of high-tech companies Apple and Google in the banking market are analyzed. Specific examples show the reasons for the bankruptcy of the previously prosperous companies Kodak (USA), Blockbuster (USA). The authors argue that digital banking is gaining a global character and the effective operation of national financial structures requires taking into account the threats and lessons of the onset of high technologies in practice. The features of the development of a digital bank on the European continent and in the United States have been clarified. Keywords: digital banking, digitalization, traditional banks, fintech, cashback, blockchain, smart contracts, cloud technologies. JEL Classification G21, O33, F65 Formulas: 0; fig.: 0; tabl: 0; bibl.: 29.

Strategi Pemasaran Bank Syariah DalamMeningkatkan Minat Generasi Milenial di Era Digital

The development of Islamic banking in the digital era provides opportunities and challenges for its existence. So the Islamic bank must be able to use the existing opportunities as well as possible, namely by improving marketing strategies in the digital era by embracing the millennial generation. The purpose of this study was to determine the marketing strategy of Islamic banks in increasing the interest of the millennial generation in the digital era and also to find out the inhibiting factors in the marketing strategy carried out. the collection technique is through documentation. The analysis is descriptive qualitative. The results show that the marketing strategy of Islamic banks in increasing the interest of the millennial generation in the digital era can be carried out with a marketing mix strategy, namely: creating a condition called bank less (banks without offices), product innovations that can attract millennials namely marriage savings, and qurban savings (one people one goat), digital banks are able to save costs because they are easy, simple, and cheap, promotions by creating creative content competitions, promotions involving influencers/ustadz/artists, and promotions involving the active role of generations millennial. The inhibiting factors are: lack of application socialization by Islamic banks, untouched internet networks in remote areas, features that are still lacking in supporting marketing. Keywords: strategy, marketing, Islamic banking, millennials.