Innovative Banking Services Research Articles

THE EFFECT OF PERCEIVED EASE OF USE ON INTENTION TO USE ON BANK SYARIAH INDONESIA MOBILE BANKING USERS IS MEDIATED BY E-TRUST AND RELIGIOSITY AS MODERATORS

The increase in smartphone users has driven customer demand for mobile banking services, so that many banks have offered innovative banking services to expand the reach of their customers who have accounts or those who do not have bank accounts. Banking is developing the use of mobile banking as a demand to meet the increasing transaction needs of individuals and companies. This is supported by advances in technology, especially cellular telecommunication. Research on "The Influence of Perceived Ease of Use on Behavioral Intention is mediated by E-Trust and Religiosity as moderators of Bank Syariah Indonesia mobile banking users" using a quantitative approach. This study explains the influence between Perceived ease of use on behavioral intention with religiosity and trust as mediating variables. This study uses the PLS analysis technique. Based on the findings of this study, it has been found that religiosity as measured by belief, experiential, considering the benefit of using a product, and carrying out activities in accordance with Islamic teachings is confirmed not to affect customer confidence in the intention to use BSI Mobile. The results of this study also show that perceived ease of use has a significant or important impact on behavioral intention through e-trust. The impact of e-trust mediation is complete mediation. When the perceived ease of use offered by BSI is assessed as lacking by the user, the user will not use the application. Therefore it is bridged by the mediating effect of the e-trust variable. In this case BSI must be able to guarantee all the security and personal data of customers, maintain the credibility of the company and reach and realize the positive expectations of its users for BSI Mobile. Perceived Ease of Use on Behavioral Intention through E-Trust. E-Trust has a partial mediation role on the effect of Perceived ease of use on behavioral intention. It means, perceived ease of use can influence behavioral intention directly or indirectly through trust. Banking mobile banking application providers need to improve strategies in increasing customer trust in BSI Mobile so that there will be continuous use of the application system.

BANKING: A COMPREHENSIVE REVIEW OF THE EVOLUTION AND IMPACT OF INNOVATIVE BANKING SERVICES ON ENTREPRENEURIAL GROWTH

The evolution of banking has consistently played a significant role in shaping entrepreneurial trajectories across the globe. This paper offers a comprehensive review of the transformation of banking from its nascent stages to the modern era, highlighting the confluence of socio-economic, technological, and regulatory drivers. Emphasizing the Renaissance of Banking, we delve into the emergence of fintech, e-banking, mobile banking, peer-to-peer platforms, and crowdfunding, underscoring how these innovations have democratized financial access. We also address the challenges entrepreneurs face in navigating this dynamic landscape. Through empirical data, the research delineates the correlation between the surge in innovative banking services and the spike in entrepreneurial growth rates. An examination of the global entrepreneurial ecosystem revealed regions where innovative banking has had profound impacts and ripple effects on ancillary industries. The study also contemplates future projections, emphasizing the anticipated integration of AI and machine learning and highlighting potential ethical considerations. Conclusively, policy recommendations are posited to further bridge the nexus between banking innovations and entrepreneurship, along with propositions for future research directions. This paper underscores that as banking continues to evolve, its symbiotic relationship with entrepreneurship is destined to foster economic growth, contingent on adept navigation of challenges and leveraging of opportunities.

Development of a banking service system based on the systematization of different distance systems

This article identifies common problems substantiating the feasibility of using and developing a unified system of innovative banking services based on the analysis and systematization of various systems of remote banking services and methods for assessing its effectiveness. On the example of large commercial banks of Uzbekistan, innovative banking, the use of which will solve the identified problems. Implementation of the specified unified system of innovative banking servicesis designed to provide banking service systems based on the systematization of various distance systems as a whole, with a focus on achieving criterial values of key performance indicators.

РОЛЬ ЦЕНТРАЛЬНОГО БАНКА РОССИЙСКОЙ ФЕДЕРАЦИИ В ФОРМИРОВАНИИ ФИНАНСОВОЙ ГРАМОТНОСТИ НАСЕЛЕНИЯ

The article is devoted to the study of the assessment of the activities of the Central Bank of Russia in improving the level of financial literacy of the population, as well as identifying problems and prospects for the development of this activity. The development of financial services and the introduction of innovative banking services require the deepening of financial knowledge of consumers of financial services. The development of financial knowledge should be accompanied by government measures that should be aimed at strengthening the protection of the rights of consumers of financial services, as well as improving the level of financial literacy. A low level of financial literacy can lead to financial problems, debts, bankruptcy and an increased level of social risks. The Central Bank of Russia plays an important role in improving the financial literacy of the population, developing a system of financial education and programs for the population.

PERCEPTION OF CUSTOMERS TOWARDS INNOVATIVE BANKING SERVICES

In this era, human needs and levels of satisfaction have surpassed previous benchmarks, and the banking sector is providing a wide range of services to customers; in the past, banks only offered saving accounts to the general public, and there were only a few banks available. No one can deny that banks have become indispensable for everyone. However, we cannot ignore the fact that the banking business, along with every other industry, is currently struggling with a number of technical challenges. This study focuses on the innovative strategies and procedures that banks implement in order to keep their existing customers and to attract new customers that are underserved. The opinions of banking clients about the inventiveness and creativity of financial institutions are the focus of this research. The researcher focused on financial institutions located in Ahmedabad. A total of one hundred customers of the bank took part in this research project, which consisted of a questionnaire with no room for open-ended responses on the customers' experiences with the creative and technological services offered by the bank.

An Analysis of how COVID-19 Revolutionized India\'s Payment Infrastructure

Abstract: In the past decades, the number of trades in India has increased at a CAGR of 23 percent. 1 The introduction of fresh and novel financial services such as UPI for contactless transaction, NETC for contactless toll payments through Fast Tags, BBPS for contactless bill payments has securely positioned the cashless sector on an upward growing emphasis. This growing pace is anticipated to expand as innovative banking services and applications throughout industries emerge. The emergence of unique and modern merchant services, increased internet penetration, a rising desire for speedier financing options, and a significant boost from the administration and authorities to utilise online technologies have all led to the expansion in electronic transactions in India. Before 2010, online payments grew in the single figures. Between the year 2010 to 2016, this percentage increased to 28 due to the introduction of speedier financial mechanisms in the nation, then it skyrocketed to 56 percent just after demonetisation in the year 2016. COVID-19 has expedited the transition to online alternatives. UPI has had an incredible CAGR of 414 percent ever since inception in 2016 has become the foremost cashless transaction system in terms of scale. In addition to UPI, BBPS and NETC have increased at a comparable rate. Since 2018, BBPS and NETC have grown at CAGRs of 500 percent and 123 percent, accordingly, due to support from the government. Cashless platforms have moved from a being commercial entity for institutions to a profitability and crucial tool for acquiring customers. Keywords: COVID-19, Digital Payments, Online Banking, Digital Wallets, Digital Banking, Virtual Transactions, Pandemic

СУЧАСНІ ТЕНДЕНЦІЇ РИНКУ БАНКІВСЬКИХ ПОСЛУГ ІЗ ЗАСТОСУВАННЯМ ІНФОРМАЦІЙНИХ ТЕХНОЛОГІЙ

In the current conditions of globalization and development of international relations, the banking sector and the banking system are going through a number of transformations. These changes are caused by the constant need to maintain stability, competitiveness and sustainable economic growth of banks. Today, the digital economy occupies a special place in all spheres of public life, and also undoubtedly affects the financial sector. Thanks to modern digital technologies, we can see not only the emergence of new electronic financial services and products, but also the modernization of the forms in which they are provided. At the same time, the most significant transformations are taking place in the field of consumer banking and payments. In the article the authors analyzed the key stages of the development of banking products, in particular the search for new technological solutions and market segments such as insurance business, financial leasing, asset management and real estate investment. The authors described the key development trends such as customer focus, controlling and innovation management. It has also been proved that all the latest trends that have emerged in the banking sector over the last period of time are determined by a common prerequisite – the development of information technology. In particular, the impact of information technologies on individual banking institutions with the aim of introducing innovative banking products and services, such as mobile and online payments, deposit and trading account management programs, is investigated. Attention is focused on such modern technologies as blockchain and cryptocurrency, as well as the impact of remote services. It is proved that the remote mode of operation has become a corporate standard for many Ukrainian banks, because today with the help of a phone or tablet it is possible to control the financial results of banking operations, analyze financial indicators and receive automatic notifications about events that require special attention. The authors also gave the most striking examples of innovations in the banking sector – such companies were «Capgemini» and Ukrainian Monobank. The authors conclude that the prospects for further research lie in an in-depth consideration of the process of diffusion of banking innovations depending on various macroeconomic and microeconomic factors, as well as the nature and key properties of innovations in the banking industry according to their classification.

Банківське кредитування компаній електроенергетичного комплексу

The article is aimed at analyzing the current state of bank lending to companies of electric energy complex, highlighting the peculiarities of the introduction of the principles of «green» lending. The importance of the development of the electricity industry as an important component of the national economy of the State is emphasized and the problems that impede the sustainable development of industry companies are identified. The level of bank lending to companies of electric energy complex is analyzed, which indicates a low level of financing of companies in the structure of the loan portfolio of commercial banks of Ukraine and indicates the predominance of short- and medium-term contracts, which limits development opportunities. It is emphasized the need to use «green» loans in order to finance energy sectors through the possibility of mobilizing private capital. The socioecological orientation of «green» lending through the impact on the management of the bank’s relevant risks in order to optimize credit structures and introduce innovative banking services is underlined. The necessity of compliance with key principles ensuring the reliability of the implementation of lending relations within the framework of the provision of «green» loans is determined. The criteria for selection and further on compliance with their sustainable development goals, ensuring the environmental friendliness of projects implemented at the expense of «green» loans, are presented. The key factors that determine the decision on «green» lending are distinguished, namely: reputation; public, joint-stock and regulatory pressure; external control, accessibility. Practical aspects of the activities of domestic banks regarding «green» loaning programs and participation in financing projects supported by the government, international financial and credit institutions are disclosed. The need to attract insurance companies and create favorable conditions on the part of the State for the introduction of «green» products and services in order to minimize the risks of implementing «green» lending schemes for electricity companies is indicated.

Uttarakhand Gramin Banks’ Services on Rural Economic Development in Uttarakhand with Reference to Dehradun

From its origins in the 18th century, the Indian banking sector has come a long way. The financial revolution resulted in the introduction of ATMs, debit and credit cards, NEFT, RTGS, and internet banking, among other things. However, technological developments around the world have put pressure on the banking sector to use better technology. This paper focuses on Uttarakhand Gramin Banks’ innovative banking services and its efforts made in uplifting the rural economy in Dehradun region of Uttarakhand. The study aims to investigate the effect of emerging technology on rural customer’s satisfaction level and the growth of the rural economy in the Dehradun area. Primary data was collected from the banks’ customers and analyzed, yielding substantial results on the subject. The result shows that customers are not satisfied to an extent with the services of this bank and its efforts in enhancing the rural economy .The rural banks needs to enhance its services in terms of quality and provide effective banking services for rural development.

Uttarakhand Gramin Banks’ Services on Rural Economic Development in Uttarakhand with Reference to Dehradun

From its origins in the 18th century, the Indian banking sector has come a long way. The financial revolution resulted in the introduction of ATMs, debit and credit cards, NEFT, RTGS, and internet banking, among other things. However, technological developments around the world have put pressure on the banking sector to use better technology. This paper focuses on Uttarakhand Gramin Banks’ innovative banking services and its efforts made in uplifting the rural economy in Dehradun region of Uttarakhand. The study aims to investigate the effect of emerging technology on rural customer’s satisfaction level and the growth of the rural economy in the Dehradun area. Primary data was collected from the banks' customers and analyzed, yielding substantial results on the subject. The result shows that customers are not satisfied to an extent with the services of this bank and its efforts in enhancing the rural economy .The rural banks needs to enhance its services in terms of quality and provide effective banking services for rural development.

Digital Strategies for the Transnationalization of the Banking Business: International Experience and Russian Practices

Aim.The strengthening of globalization processes goes hand in hand with the intensification of international trade in goods and services, the structure of which depends on the decisive influence of new technologies that change the nature of cross-border cooperation. This determines the goals for studying the development of transnational banking with allowance for digitalization, which serves the purpose of maintaining economic relations at this level.Tasks.The authors consider digital technologies in banking as a resource that ensures the successful implementation of banking strategies aimed at reaching the transnational level of operation.Methods.This study uses theoretical and general scientific methods of systems, logical, structural, and comparative analysis.Results.It is established that changes taking place in the transnational banking business are primarily associated with the decreasing growth of the banking sector in developed countries and the increasing financial influence of countries with transitional and developing economies, including Russia.Conclusions.Based on a review of the international and Russian experience of digitalization in the banking sector, it is concluded that an efficient strategy for the development of transnational banking involves the integration of digital and non-digital resources. The goal of this process is to develop a brand-new service for providing access to innovative banking products and services, allowing the bank to remain competitive.

Аналіз депозитних операцій банків: стан, проблеми та вдосконалення

Abstract. Introduction. The determining share of bank resources is formed in the process of implementation of deposit operations, the productivity of which depends on the stability, sufficiency and liquidity of banks. They need to systematically maintain proper customer service, use the latest deposit products and investment requirements to expand their customer base. That is why the assessment of the bank's deposit operations, identifying their problems and areas for improvement is very important. Purpose. The purpose of the article is to study the state of deposit operations of domestic banks, identify their problems and improve. Results. The article examines the essence of deposits, which is regulated by various regulations. The classification of deposits on various grounds is considered. The focus is on such types of deposits as: time deposits and demand deposits, their disadvantages and advantages are presented. The analysis of deposit operations in Ukraine is carried out. In particular, the following was assessed during 2010-2020: dynamics of residents 'deposits, dynamics of non-residents' deposits, residents 'deposits by maturity, residents' deposits by types of currencies, corporate and retail deposits, distribution of retail deposits by groups of banks and value of time deposits by data of statistical reporting of banks of Ukraine. It is indicated that in the development of deposits over the past ten years there are both quantitative and qualitative trends that reflect certain aspects of banks' deposit policy. Currently, there is a situation when the amount of deposits increases by sectors of the economy, in terms of types of currencies and maturities and the cost of their use decreases. The main problems of the deposit operations market of Ukraine as well as the directions of improving the efficiency of banks' deposit policy are identified. Conclusions. The study shows that currently there is a situation where the amount of deposits increases by sectors of the economy, in terms of types of currencies and maturities, and the cost of their use decreases. Summarizing the practice of banks and the views of scientists, identified the main problems of the deposit market of Ukraine. The directions of improvement of banks 'deposit policy are also covered, namely, introduction and expansion of innovative banking services, restoration of depositors' confidence in banks, modernization of deposit policy on the basis of modern inquiries, increase of interest in placing funds on deposit accounts.

ENSURING FINANCIAL PERFORMANCE OF BANKS IN THE TRANSITION TOWARDS THE ECOSYSTEM

Banks still play a key role in monetary transactions, but at the present stage their role for customers is declining. In the near future, many agreements may not require the involvement of an intermediary. Therefore, banks need to rethink their business models and find new ways to stay relevant to their customers. Despite the development of fintech companies, banking and, moreover, the financial market will not disappear, but we can conclude that the reasons for the preservation and, consequently, the direction of transformation of the financial market will be different. Banking institutions need to build a new model of customer relations to establish trusting relationships, on the basis of which continuous business growth is possible. The introduction of banking ecosystems is inevitable, and Ukraine has great potential in this direction. Efficient operation of its own ecosystem platform provides endless advantages of the bank over its competitors. Therefore, such a platform in the long run will allow customers to perform everyday operations conveniently and most importantly in an accessible format. The main advantages of the ecosystem of innovation banking activity include: expanding the list of innovative products and services for existing and new customers, reducing the cost of innovation; accelerate the introduction of innovations in the ecosystem through more dynamic feedback with all participants in the ecosystem and increase customer loyalty; formation of new principles of interaction between participants in the innovation process in order to provide a wider range of innovative banking products and services. Digital ecosystems are a promising business model for banks, as they can not only attract and retain customers, but also generate income beyond their core business. In addition, cooperation with other companies in the form of commercial partnerships creates an attractive income and synergy for banks

Уточнення змісту поняття банківського маркетингу в умовах диджиталізації економіки

The article is aimed at exploring the evolution of scientific approaches to defining the essence of bank marketing, closer defining the content of the concept of bank marketing in the context of digitalization of the economy, determining the essence and place of digital marketing in the general system of bank marketing. As a result of the research, it is found out that the modern scientific conception of bank marketing is digital marketing, which provides grounds to supplement the periodization of the development of bank marketing in Ukraine with a modern stage that corresponds to the introduction of the conception of digital marketing. It is substantiated that digital marketing coexists in the general system of bank marketing with traditional and Internet marketing and applies to traditional and innovative banking products and services. In this context, a differentiation of bank marketing by two features is proposed: type of bank product/service (traditional/innovative) and the type of bank marketing (traditional, informational, digital). In accordance with the suggested differentiation, it is proposed to develop a portfolio of bank marketing strategies. It is proved that the digital marketing strategy is systematically integrated into the overall strategic marketing planning of banking institutions. It is proposed to consider the stages of formation of the digital marketing strategy in connection with the portfolio of marketing strategies implemented in the bank’s activities. Prospects for further research are the scientific substantiation of strategic, tactical and operational aspects of digital marketing in order to increase its efficiency and effectiveness in promoting the image of the bank, banking services and products, attracting and retaining consumers of financial services.

Innovative banking services for individuals: trends, problems and prospects

Innovative banking services for individuals: trends, problems and prospects

Impacts of Fintech to Finance-Banking activities and recommendation for Finance-Banking industry in Vietnam

Impact of the 4th industrial revolution on development of finance and banking system (TCNH) is increasingly clear with the launch of a series of new and innovative banking products and services, as well as introduction of new distribution channels for banking services based on financial technology platform (Fintech). On the basis of components and products of Fintech ecosystem, the article mentioned Fintech market in Vietnam, clarifying positive and negative impacts of Fintech on operations of finance-banking industry, from there to issue some recommendations for activities of Vietnam’s Finance-Banking industry to meet new trends.

Credit and Financial and Payment Infrastructure of Volgograd Region: Trends and Prospects of Development

The aim of the work is to assess the state of the main parameters of credit and financial and payment services of the economy of Volgograd region (institutional provision with banking services, indicators of attraction and investment of funds, retail payment infrastructure) and to establish trends in their dynamics in comparison with the data on Russia and the Southern Federal district. The authors establish that the territorial provision with banking services is characterized by unevenness; the reduction of banking institutions has affected Volgograd region to a greater extent; but the disproportions are partially compensated by the transformation of organizing banking activities, technology and communications according to the digital type. The assessment of indicators of credit and savings services in Volgograd region shows that the greatest credit activity is observed in the sphere of individual lending; loans to legal entities and individual entrepreneurs are declining; deposits, funds in the accounts of legal entities and individuals are growing at a higher rate than in the country as a whole. The assessment of the primary retail infrastructure of the payment market shows that in Volgograd region, in comparison with the Russian Federation, there is an exceeding growth of ATMs and electronic terminals; it is natural to reduce the number of contact imprinters with the simultaneous growth of electronic terminals, which characterizes the strengthening of innovative banking services. Territorial disproportions in the provision of the Russian Federation with credit and financial and payment infrastructure with negative dynamics of Volgograd region are found and that is one of the reasons of lagging of social and economic development of the region. The conditions of credit and financial and payment infrastructure of Volgograd region, the issues concerning mechanisms of leveling the infrastructural availability of financial services in the region due to the diffusion of technological innovations as conductors and channels of remote access to modern financial services can become the directions of further research.

Determinants of customers’ adoption of mobile banking in Tanzania: Further evidence from a diffusion of innovation theory

The main goal of this study was to examine the influence of demographic factors on the adoption of innovative mobile banking services in Tanzania. It utilized Rogers’ Diffusion of Innovation Theory (DIT) to ascertain the importance of situation-based demographic factors. A survey was conducted with 416 customers of a leading bank in Tanzania. The study applied self-administered questionnaires completed by the respondents who had agreed to participate. The data were analyzed using a combination of descriptive and multivariate analyses. The descriptive results revealed that the majority of respondents used mobile banking once to three times a week to check their balance, download a mini-statement, pay different bills, transfer funds from their account to a mobile telecom network, and buy airtime. The regression results further showed a positive and significant relationship between level of income and education attainment on the one hand and the adoption of mobile banking on the other. The study argues that promotional practices and awareness-raising campaigns are needed to capture the demographic profiles of customers in order to encourage them to adopt mobile banking. Theoretically, the study has shown the relevance of applying the situation-based theory to the adoption of innovative technologies as regards banking services in Tanzania. It also broadens our understanding of the importance of demographic factors that have received little attention from the dominant socio-psychological theories.

МОНІТОРИНГ ПОКАЗНИКІВ ДІЯЛЬНОСТІ БАНКІВСЬКОГО СЕКТОРУ УКРАЇНИ В СУЧАСНИХ УМОВАХ

The activities of banking institutions play an important role in the processes of financing the development of the economy, providing business entities and individuals with sufficient financial resources. Over the past few years, the banking sector has undergone a series of crisis shocks. In the context of the unstable development of the Ukrainian economy, monitoring the performance of banks requires constant consideration to prevent possible crisis shocks, and in general to determine the prospects for the development of the domestic banking sector. Therefore, the research topic is undoubtedly relevant. The purpose of the scientific article: to analyze the main indicators of the activities of banking institutions in modern conditions and to determine the prospects for the development of the domestic banking sector. The article uses general scientific methods: analysis, synthesis, induction, deduction, concretization - for the collection, systematization and processing of information for the purpose of carrying out the reporting; graphical method - for visual presentation of analytical material on the research topic; abstract-logical method - for the implementation of theoretical generalizations and conclusions regarding the current state and prospects for the development of the banking sector in Ukraine. The scientific article monitors the performance indicators of the banking sector of Ukraine in modern conditions. The values of economic standards in general for the system of banks and economic standards of systemically important banks in Ukraine are investigated. It was determined that the banking system of Ukraine has a high level of capitalization and liquidity, which exceeds the standard values, that is, a sufficient margin of safety for sustainable development. The main prospects for the development of the banking sector in Ukraine have been determined. The main prospects for the development of banking sector of Ukraine have been determined: improvement of legislative acts regulating banking activities; development of incentive banking regulation mechanisms; improvement and development of remote banking services (with the strengthening of quarantine measures, a large number of customers preferred exactly remote banking); development and implementation of the latest digital technologies in the activities of banks and the creation of digital banks (example: the successful Monobank project from Universalbank); introduction of innovative banking services and products; strengthening measures to counter cyber fraud; promoting the development of interaction between the banking sector and businesses that have a high level of compliance; improvement of corporate governance systems in banking institutions. The greatest relevance, in our opinion, will be further research aimed at identifying problematic aspects of the banking sector and finding ways to solve them.

Development of Electronic Communications in the Financial Market-Based System

Purpose: The article aims at revealing opportunities for forming long-term effective partnership communication with the consumer in the financial market. It elicits prospects for the development of communications in the financial market, considers reactions as responsive behavioral switching nodes evolving in the course of interaction and defines opportunities for forming long-term effective partnerships with consumers. Design / Methodology / Approach: To provide information for marketing communications in the financial market and ensure security, it is necessary: first, to study possible risks of communication and problems which are likely to happen in the course and as a result of interaction and counteraction to hostile manipulations in the information network; second, to provide protection of consumers and target groups’ rights and cooperation with public authorities in the field of information and communication security; third, to monitor staff activities; fourth, to entail market research and analysis of new segments, market stakeholders of traditional and innovative services. Findings: To enhance effectiveness of electronic communications in the financial market-based system, a set of measures for information support of marketing communications in the financial market has been elaborated to further ensure security. The technique of modern PR-communications in business is a universal tool of marketing technologies designed to create favorable public opinion and a positive perception of a certain economic entity. At the same time, maximum coverage implies forecasting the future development of the market situation in the financial market and establishing contact with the interested audience. Practical implications: The results of the study can be introduced into management practice to adapt the existing system of banking products distribution to innovative market demands and indicators of hidden and unmet demand and to develop and ideally implement innovative banking services. Originality/Value: The major contribution of this research is to identify prospects for communications development in the financial market and form reactions as response behavioral switching nodes arising in the course of interaction.