scholarly journals Emergence of Non-Traditional Financial Service Providers in the Market - A Threat or An Opportunity for the Georgian Banking Industry

2021 ◽  
Vol 4 (2) ◽  
pp. 97
Author(s):  
Tea Kasradze
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
New Technologies ◽  
Service Providers ◽  
Banking Industry ◽  
Secondary Data ◽  
Financial Service ◽  
Retail Banking ◽  
Financial Industry ◽  
The Impact

Each banking institution has a customer-oriented strategic plan, although the sudden emergence of competition does not allow them to relax. The explosion of new technologies and the rise in consumer demand have been putting pressure on banks since the 2008 recession. Retail banking customers are constantly expecting new, improved, affordable, convenient continuous service from the bank. In an environment of increasingly competitive, innovative financial services, banks need to be able to maintain not only customers but also brand awareness. The emergence of non-traditional financial service providers in the market such as FinTech, NEO Banks, Challenger Banks, BigTech, which reduces the relationship between banks and their customers, completely changes the banking industry. Today we face a new open ecosystem of consumers, traditional banks, FinTech and BigTech companies, regulators, developers, non-banking firms and other players, with customers at the center. Banks will have to significantly change their commercial and operating models to retain customers and remain active players in the market. The presented paper examines the development trends of new players in the financial industry - non-traditional financial service providers and the readiness of the banking industry to respond to these trends. The paper is a study of the impact of digitalization of financial services on the banking sector based on the study and analysis of reports of the various international organizations, local policy documents, reports and regulations of the National Bank, the papers of various researchers and their secondary data. Based on the research, suggestions have been made on how Georgian banks should strategically approach non-traditional providers of financial services to avoid losses, withstand competition and remain active market players.

scholarly journals Digital Finance and the Future of Nigerian Banking System: A Review

2020 ◽  
Vol 6 (16) ◽  
pp. 24-35
Author(s):  
Gbenga F. Babarinde ◽  
◽  
Matthew O. Gidigbi ◽  
Julius T. Ndaghu ◽  
Idera T. Abdulmajeed ◽  
...  
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Financial Service ◽  
Digital World ◽  
Services Delivery ◽  
The Future ◽  
The Impact ◽  
Nigerian Banking

Digital finance is a type of financial service that employs digital products like personal computers, the internet, mobile phones, cards linked to a digital payment system. Innovations in the digital world cannot be divorced from Nigerian financial services most notably the banking sector. Therefore, it means that banking industry cannot but embrace digital innovations in their services delivery. Hence, there is a need to review the impact of digital finance in the Nigerian banking sector. Desk research method was used to examine how innovations in the digital world could impact the future financial service delivery in the Nigerian banking sector. From the review, it was that the digital world is quickly changing and this impacts banking in all ramification. It is recommended that the banking industry should try to keep pace with the digital innovations, for them to be able to meet up the demands of their digitally-savvy customers.

SISTEM KOORDINASI ANTARA OTORITAS JASA KEUANGAN (OJK) DENGAN LEMBAGA PENJAMIN SIMPANAN (LPS) DALAM PENANGANAN BANK GAGAL

2017 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
WIWIN WINTARSIH WINDIANTINA
Keyword(s):  
Economic Growth ◽  
Financial Services ◽  
Deposit Insurance ◽  
Banking Sector ◽  
Banking Industry ◽  
Financial Service ◽  
Financial Service Authority ◽  
Insurance Agency ◽  
Financial Transactions ◽  
The Impact

ABSTRACTThe banking industry is a dynamic sector along with economic growth, an increasing of complex financial transactions, and the impact from global trade, therefore the presence of an independent institutions is really needed. The Deposit Insurance Agency (LPS) is an institution that is independent, transparent and accountable in implementing its duties and authorities. As an independent agency, accountability is very important to be applied, so that stakeholders aware of what and how LPS implement the functions and duties as mandated by Law No. 24 of 2004 concerning the Deposit Insurance Agency (LPS). Procedurally, if the Financial Services Authority (OJK) indicate a bank that is experiencing liquidity problems, Financial Services Authority (OJK) immediately inform the Bank of Indonesia (BI) to take steps in accordance with BI's authority. In practise, Financial Service Authority (OJK) coordinate withBank of Indonesia (BI) to make regulatory supervision in banking sector. Coordination in handling between failed banks between the Deposit Insurance Agency (LPS) and Financial Services Authority (OJK) is shown by a confirmation from Financial Services Authority (OJK) to the Deposit Insurance Agency (LPS) about troubled banks that are in the restructuring efforts by Financial Services Authority (OJK), then the Deposit Insurance Agency (LPS) investigate the banks in accordance with its functions, duties and responsibilities. The Deposit Insurance Agency (LPS) as an institution that checks condition of banks surely will review and determine whether the troubled banks will be saved or not saved.

Indian Banking Sector: Challenges and Opportunities

2003 ◽  
Vol 28 (3) ◽  
pp. 83-100 ◽  
Author(s):  
K V Kamath ◽  
S S Kohli ◽  
P S Shenoy ◽  
Ranjana Kumar ◽  
R M Nayak ◽  
...  
Keyword(s):  
Competitive Advantage ◽  
Banking Sector ◽  
New Technologies ◽  
Service Providers ◽  
Banking Industry ◽  
Growth Responses ◽  
Changing Environment ◽  
Challenges And Opportunities ◽  
Product Delivery ◽  
Indian Banks

A distinguished panel of managing directors and chief executive officers of some of the well-known banks in the country responded to the theme on the challenges and opportunities faced by the Indian banking sector in the liberalized environment. The contributors addressed the following issues: Financial reforms with specific reference to Indian banking industry focusing on implications to the existing players, new entrants, multinationals, and consumer behaviour. New and emerging opportunities: consumer and commercial banking. Competition: players, intensity, market size, profitability, and growth. Responses to challenges with reference to restructuring, automation, product delivery, and process reengineering. Issues related to governance, regulation, and audit. Product engineering, product design, and product delivery. Consumer expectations, feedback, cross-selling, customer relationship management(CRM), market segmentation, marketing, branding, and new products introduction. HR related issues: VR5, compensation, education and training, empowerment, and career plan. Future scenario: Broad trends in the next five years and the expected position. E-banking and its importance. Salient features of the responses included: The Indian banking sector is at an exciting point in its evolution. The opportu- nities to enter new business and new markets and to deliver higher levels of customer service are immense. As the Indian banks position themselves as financial service providers, banking business is getting redefined. Technology is unsettling the earlier business processes and customer behaviour is undergoing change. These have enhanced the forces of competition. Competitive advantage can be achieved through harnessing the potentialavailable in the employees by creating a positive work culture and enlisting the support of all the employees to the organizational goals. Indian banks have adopted better operational strategies and upgraded their skills. They have withstood the initial challenges and have become more adaptive to the changing environment. In the complex and fast changing environment, the only sustainable competitive advantage for banks is to give the customer an optimum blend of technology and traditional service. Four trends are fundamentally altering the banking industry: consolidation, globalization of operations, development of new technologies, and universali- zation of banking.

Assessing the Determinants of Adoption of M-Banking by Students

2016 ◽  
pp. 120-136
Author(s):  
Gazal Punyani ◽  
Sourabh Sharma
Keyword(s):  
Banking Sector ◽  
Service Providers ◽  
Banking Industry ◽  
Banking System ◽  
Study Data ◽  
Mobile Banking ◽  
Banking Services ◽  
Technology Adoption Model ◽  
Adoption Model ◽  
The Impact

Technology is entwined in almost every part of one's lives. Today's students are using more technology than ever before. Information technology has revolutionized every industry and especially the banking industry. Tremendous improvements in technology have taken place in the Indian banking sector. Among all, Mobile Banking (m-banking) is the recent phenomenon that changed country's banking system. Students, being considered as most technically knowledgeable make most use of mobile banking services among all the banking customers. Therefore, the focus is particularly towards the young students engaging in m-banking services and to evaluate the factors that influence them to adopt m-banking. The study considers extended Technology Adoption Model (TAM) to measure the impact of the factors on adoption of m-banking. For the study, data was collected through questionnaire from 217 students of Western Rajasthan. The result of this research would provide valuable information to service providers in order to improve their m-banking services.

scholarly journals Fintech Lending: Challenge and Opportunities of the Indonesia’s Loan Unbanked to Develop the Inclusive Financial Industry

2019 ◽  
Vol 3 (2) ◽  
pp. 105
Author(s):  
Pranoto Pranoto ◽  
Munawar Kholil ◽  
Kukuh Tejomurti
Keyword(s):  
Financial Services ◽  
Secondary Data ◽  
Peer To Peer ◽  
Financial Service ◽  
Financial Industry ◽  
Legal Research ◽  
Indonesian Government ◽  
Start Up ◽  
Business Area ◽  
P2p Lending

<p>The aim of this study is to explore and analyze the development of fintech peer to peer lending (fintech) regulation in Indonesia and Indonesia's readiness in facing the fintech industry, especially fintech loans. This study is important since the Indonesian government has begun to ratify fintech as one of the legal financial services in Indonesia. This is a normative legal research, by collecting secondary data including primary, secondary, and tertiary legal materials. The results show that after the Indonesian government approved Fintech as a legitimate financial service in Indonesia, many Fintech Start up companies begin registering their companies, the Indonesian government separate the granting of fintech licenses to the financial services authorities and Indonesian banks according to the types of the fintech, specifically for fintech peer to peer licensing is granted by the financial services authority. Although Fintech P2P Lending can be a prospective business area, there is not infrequently the risk of default by borrowers. The Fintech Provider does not guarantee ongoing loans if they fail to pay. Because the organizer is not a party to a loan agreement made by the lender and the recipient of the loan. there is not infrequently the risk of default by borrowers. The Fintech Provider does not guarantee ongoing loans if they fail to pay. Because the organizer is not a party to a loan agreement made by the lender and the recipient of the loan</p>

scholarly journals From CSR to Customer Loyalty: An Empirical Investigation in the Retail Banking Industry of a Developing Country

2017 ◽  
Vol 64 (3) ◽  
pp. 307-323 ◽  
Author(s):  
Ovidiu-Ioan Moisescu
Keyword(s):  
Developing Country ◽  
Customer Loyalty ◽  
Latent Variables ◽  
Service Providers ◽  
Banking Industry ◽  
Multiple Regression Model ◽  
Retail Banking ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Abstract The objective of the current paper is to investigate the impact of customers’ perceptions of their service providers’ corporate social responsibility (CSR) on customer loyalty, bringing relevant and useful insights regarding the nature of this relationship in the retail banking industry, and in the particular context of a developing country. The objective was accomplished by planning and implementing a consumer survey among a sample of 1449 Romanian retail banking customers, using an item-pool drawn up from the literature. The observed variables were grouped into several reflective latent variables, and afterwards included into a multiple regression model. The results indicate that customers’ loyalty towards retail banking companies is significantly and positively impacted by how customers perceive their providers’ CSR. Moreover, analyzing each category of responsibilities individually, banks’ responsibility towards their customers can be emphasized as being the most important dimension in our research context. The results convey practical implications for customer loyalty enhancement in a European developing country’s retail banking industry, by identifying those CSR dimensions on which organizations should focus on within their CSR policies implementation and communication.

Consumers’ switching motivations and intention in the case of bank mergers: a cross-cultural study

2017 ◽  
Vol 35 (2) ◽  
pp. 254-274 ◽  
Author(s):  
Maya F. Farah
Keyword(s):  
Banking Sector ◽  
Service Providers ◽  
Critical Role ◽  
Real Life ◽  
Retail Banking ◽  
Cross Cultural ◽  
Switching Behavior ◽  
Content Type ◽  
Consumer Switching ◽  
The Impact

Purpose The purpose of this paper is to analyze consumer switching behavior, which in the retail banking sector is of outmost importance, particularly during financial crises and in their ensuing consolidation pressures. Moreover, research indicates that cultural values play a critical role in determining a customer’s likelihood to switch the service provider. The theory of planned behavior offers a comprehensive theoretical framework for an understanding of this behavior. Its application implies that switching is influenced not only by one’s attitudes toward changing banking service providers, but also by the merger situation at hand, the influence of significant others, and whether the switching decision is under one’s behavioral control. Design/methodology/approach This paper scrutinizes the merger between Lloyds TSB and Halifax Bank of Scotland in the Spanish market, with a focus on the differences between British and Spanish consumers. In all, 30 face-to-face exploratory interviews were conducted with a sample of customers from both nationalities selected through a purposive sampling technique. Findings The results indicate that the switching behavior within the banking sector is largely determined by one’s cultural background. While individualistic consumers are more prone to switch banks, collectivist consumers are highly risk averse and are unwilling to lose the established relations with a bank’s personnel. These particular characteristics make them unlikely to switch banks irrespective of a merger and its related consequences. Originality/value This paper examines the impact of cross-cultural differences on consumer switching motivations and intentions in the particular case of a real-life banks’ merger.

Banking in the United States

2019 ◽  
pp. 977-999
Author(s):  
Robert DeYoung
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Financial Stability ◽  
New Technologies ◽  
Banking Industry ◽  
High Volume ◽  
The United States ◽  
Retail Banking ◽  
Small Community ◽  
Banking Services

The past forty years has witnessed a near total transformation of the US banking industry, as well as a near total disaster. The bank regulatory framework established during the Great Depression was dismantled, new technologies revolutionized how banks produce and distribute financial services, and dramatic increases in competition have pressured banks to operate more efficiently. The population of commercial banks has been halved by a wave of acquisitions and the largest banks have increased ten-fold in size. A strategic dichotomy has emerged, with small ‘community’ banks providing person-to-person retail and small business banking services, and large commercial banks providing high-volume retail banking services in domestic markets and corporate and investment banking services around the world. These changes have brought great efficiencies to the banking industry and its customers, but have also introduced new instabilities to the system. A decade of historically high profits was followed by large investment losses and government bailouts during the financial crisis of 2008–9. A partial re-regulation of the industry has followed, and both bankers and policymakers seek to balance market efficiencies with financial stability as this dynamic industry moves further into the twenty-first century.

scholarly journals IMPACT OF INFORMATION TECHNOLOGY AND DIGITALIZATION ON BANKING STRATEGY PRE-COVID-19, CHALLENGES IN THE COVID ERA AND POST-COVID STAKES

2021 ◽  
Vol 6 (2) ◽  
pp. 60-73
Author(s):  
Syrine Ben Romdhane
Keyword(s):  
Information Technology ◽  
Financial Services ◽  
Banking Sector ◽  
Banking Industry ◽  
Jel Classification ◽  
Digital Transformation ◽  
Strategic Plans ◽  
Banking Strategy ◽  
The One ◽  
The Impact

The spread of information technology and the digitalization of financial services raise a range of theoretical questions as the structures of the banking industry undergo change. This change has intensified with the impact of the COVID-19 pandemic which is already being observed. The purpose of this study is therefore threefold: (1) to analyze the impact of IT and the digitalization of financial services on the strategy and functioning of the pre-COVID-19 banking sector; (2) to study the challenges banks are facing in the COVID era in managing the crisis, and (3) to highlight post-COVID stakes.  This study shows, on the one hand, that the crisis confirms the need for banks to combine physical proximity and digital offer, and on the other hand, that digitalization could be the solution for banks to consistently mitigate risks. Through this digital transformation and their ability to re-invent themselves, the banks would guard against potential similar crises. By adopting a more digitized and open behavior, they would be immune to such crises because they would have appropriate strategic plans, as they would be better equipped to counter the threats and better prepared to transform them into opportunities. JEL Classification Codes: B26, B41, G21, G32, O32.

The narrow and broad argument of microfinance impacts on small- and medium-sized enterprises in Ghana

2019 ◽  
Vol 11 (4) ◽  
pp. 118-127
Author(s):  
Solomon Arhin
Keyword(s):  
Monitoring System ◽  
Low Income ◽  
Financial Services ◽  
Crucial Role ◽  
Service Providers ◽  
Financial Service ◽  
Market Failures ◽  
The Poor ◽  
Microfinance Institution ◽  
The Impact

Microfinance has become a popular and fashionable word in financial and development circles. In practice, the term was often used more narrowly to refer to loans and other services from providers that identify themselves as microfinance institution. Indeed, the concept of microfinance was not new in Ghana. Microfinance plays a very crucial role in the area of addressing the market failures with regard to the provision of financial services to the low-income customers who until recently were receiving little or no help from the conventional financial service providers. This study examines the impact of microfinance on the operations of small- and medium-scale industries in Ghana – focusing on Tafo area of Ashanti region. The study uses sampling size of 91 clients. Data were collected through questionnaire. The findings reveal that most of the microfinance clients take loans to expand their personal businesses. The study recommends an effective monitoring system to be put in place to correct the poor collection mechanism that is currently facing the firms. Keywords: Microfinance, small- and medium-sized enterprises, Tafo district  

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