scholarly journals Implications of Implementation of Artificial Intelligence in the Banking Business in Relation to the Human Factor

2020 ◽  
Vol 19 (1) ◽  
Author(s):  
Krunoslav Ris ◽  
Željko Stanković ◽  
Zoran Ž. Avramović
Keyword(s):  
Artificial Intelligence ◽  
Business Process ◽  
Banking Sector ◽  
Banking System ◽  
Learning Technology ◽  
Legacy System ◽  
Banking Business ◽  
Management Institutions ◽  
The Impact ◽  
Number Of Customers

The banks are known as monetary management institutions because they deal with money. There is a number of customers that a bank daily interacts with. In this technology era, when everything is moving to automation from the beginning step to final product manufacture, medical checkups, medical reports, and evaluation, the banking system is still working on the legacy system. Instead, with the participation and implementation of new Virtual Assistant-powered with AI and Machine Learning technology in the banking sector, the institutions are again using the legacy system or may be bound to use the legacy system. This research will help to elaborate and emphasize the impact of the implementation of automation, using artificial intelligence in the banking business process. This research will be based on the quantitative as well model base prof of system performance using different analytical tools like SPSS. This automation process will help the institutions to enhance profitability, performance, and reduce human dependency. In a nutshell, Virtual Assistants powered with Artificial Intelligence will improve the business process performance in every sector of business, especially the banking sector.

scholarly journals Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

2021 ◽  
Vol 13 (10) ◽  
pp. 5535
Author(s):  
Marco Benvenuto ◽  
Roxana Loredana Avram ◽  
Alexandru Avram ◽  
Carmine Viola
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Banking Sector ◽  
Research Question ◽  
Interactive Effect ◽  
Banking System ◽  
Capital Adequacy ◽  
Banking Systems ◽  
Governance Index ◽  
The Impact

Background: Our study aims to verify the impact of corporate governance index on financial performance, namely return on assets (ROA), general liquidity, capital adequacy and size of company expressed as total assets in the banking sector for both a developing and a developed country. In addition, we investigate the interactive effect of corporate governance on a homogenous and a heterogeneous banking system. These two banking systems were chosen in order to assess the impact of corporate governance on two distinct types of banking system: a homogenous one such as the Romanian one and a heterogeneous one such as the Italian one. The two systems are very distinct; the Romanian one is represented by only 34 banks, while the Italian one comprises more than 350 banks. Thus, our research question is how a modification in corporate governance legislation is influencing the two different banking systems. The research implication of our study is whether a modification in legislation, thus in the index of corporate governance, is feasible for two different banking sectors and what the best ways to increase the financial performance of banks are without compromising their resilience. Methods: Using survey data from the Italian and Romanian banking systems over the period 2007–2018, we find that the corporate governance has a significant, positive and long-lasting effect on profitability and capital adequacy in both countries. Results: Taking the size of the company into consideration, the impact of the Index of Corporate Governance (ICG) on a homogenous banking system is positive while the impact on a heterogeneous banking system is negative. Conclusions: Our study provides evidence of the impact of IGC on financial performance and sheds light on the importance of the size of the company. Therefore, one can state that the corporate governance principles applied do not encourage the growth of large banks in heterogeneous banking sectors, thereby suggesting new avenues of research associated with new perspectives.

IMPROVING THE EFFICIENCY OF USING INFORMATION AND COMMUNICATION TECHNOLOGIES IN THE BANKING SYSTEM

2021 ◽  
Vol 4 (4) ◽  
pp. 41-46
Author(s):  
Ra’no Parpieva ◽  
◽  
Nafisa Norboyeva ◽  
Adiba Turayeva
Keyword(s):  
Information And Communication Technologies ◽  
Information Technologies ◽  
Banking Sector ◽  
Banking System ◽  
Modern Society ◽  
Communication Technologies ◽  
Payment Systems ◽  
Information And Communication ◽  
Effective Use ◽  
The Impact

This article will serve to select the system required for the effective use of information and communication technologies in the banking system and the impact of national payment systems in the banking sector on modern society, the effective use of new modern information technologies in the system.Study of foreign experience to select information and communication technologies that should be used in modern banks with information and communication technologies in the banking system, which have been used before.

scholarly journals EVALUATION OF FUNCTIONAL PERFORMANCE OF THE BANKING SYSTEM OF UKRAINE IN CONDITIONS FINANCIAL INSTABILITY

2021 ◽  
Author(s):  
Nataliia Danik ◽  
Kateryna Novak ◽  
Anastasiia Yakovenko
Keyword(s):  
Economic Crisis ◽  
Financial Stability ◽  
Structural Changes ◽  
Banking Sector ◽  
Synergistic Effects ◽  
Banking System ◽  
Scientific Article ◽  
Financial Instability ◽  
Industrial Complex ◽  
The Impact

The article covers the problems of the functioning of the banking sector of Ukraine during 2018-2021, as one of the main sectors of the financial market and the national economy as a whole. When analyzing the state of the banking sector, regularities and general trends in the functioning of the banking sector of Ukraine have been established, and appropriate calculations have been made. The impact of global financial crises on the activities of banking structures, which must operate in conditions of constant financial instability, is described. Today, the whole world, including Ukraine, is on the verge of a global financial and economic crisis. This raises the question of whether Ukrainian banks have the necessary margin of resilience to vulnerabilities to the financial and economic crisis. In recent years, the functioning and development of the banking system has been characterized by increased financial stability, the level of bank capitalization, liquidity, some improvement in asset quality, reducing risks in banking, as well as the presence of positive structural changes. Today, Ukraine's banking system operates in a complex socio-economic and legal environment, most of which - macroeconomic instability, irrational structure of the industrial complex, the crisis of science and technology, imperfect fiscal and monetary policy, low level of effective demand - complicate sustainable development banking sector and increase competitiveness. In conditions of instability, intensification of turbulent processes, the development of the banking system requires new innovative approaches to determining the mechanisms of effective functioning and stable development based on a system-synergetic approach, which led to the choice and relevance of the chosen topic of this scientific article. Efficiency of banks is a multicomponent, multifaceted, multidimensional system characteristic that depends on many factors and is an effective indicator of performance of functions and achievement of goals and objectives of banks development provided financial stability based on financial stability and dynamic balance, achievement of multiplicative and synergistic effects.

scholarly journals Analysis of the Impact of External Shocks on the Russian Banking System in the XXI Century

2019 ◽  
Vol 13 (4) ◽  
pp. 51-61
Author(s):  
O. S. Kochetovskaya
Keyword(s):  
Banking Sector ◽  
Debt Crisis ◽  
Banking System ◽  
Capital Inflows ◽  
External Financing ◽  
External Shocks ◽  
The Usa ◽  
European Debt Crisis ◽  
Favorable Conditions ◽  
The Impact

The main objective of the study was the identification of the key channel of impact of positive and negative external shocks on the Russian banking system for the period from 2000 to 2017. In conducting the study the author used systematic and statistical methods of analysis. Throughout the named period, the banking sector of Russia was always under the influence of one or another external shock: rising and falling oil prices; favorable conditions for obtaining financing on the global capital market; the global financial and economic crisis; the European debt crisis; the tapering of the quantitative easing policy in the USA; sanctions imposed on Russia by the Western countries. In the pre-crisis period, capital inflows became the main channel for the transmission of external shock. In the course of the European debt crisis, problems with attracting external financing became a key channel for the transfer of external shock. During the global crisis and the crisis of 2014–2016 the channels of transmission of external shocks to the banking sector of Russia, despite various causes, were in many ways similar. So, the main channels were the outflow of capital, the restriction of external financing, the collapse of the ruble exchange rate, and the state of confidence in the banking sector.

scholarly journals Russia’s banking sector during the pandemic

2022 ◽  
pp. 157-163
Author(s):  
E. N. Gavrilova
Keyword(s):  
Systematic Approach ◽  
Banking Sector ◽  
Banking System ◽  
Policy Instruments ◽  
Graphical Methods ◽  
Real Economy ◽  
Good Test ◽  
Russian Economy ◽  
Monetary Authorities ◽  
The Impact

Quarantine and self-isolation have become a new challenge for the Russian economy, changed many areas of our life, revealed new weaknesses in the banking system and monetary regulation of the economy, and also become a good test for the post-crisis financial system. In this article using a systematic approach to the study of information, analytical and graphical methods the dynamics of the Russian banking sector during the development of the coronavirus pandemic and the specifics of recovery from the crisis have been investigated. The innovations and improvements brought about by the pandemic have been studied. The Central Bank of Russia’s monetary policy instruments used to mitigate the impact of the pandemic on the real economy in general and on the banking sector in particular have been reviewed. The features of anti-crisis measures taken by the monetary authorities in our country have been revealed. 

scholarly journals Analyzing Impact of Computer Attacks on the Banking System of the Russian Federation

2019 ◽  
pp. 202-210
Author(s):  
A. A. Salcutan
Keyword(s):  
Russian Federation ◽  
Banking Sector ◽  
International System ◽  
Banking System ◽  
Russian Economy ◽  
Computer Attacks ◽  
The Russian Federation ◽  
The Impact ◽  
Swift System

The article analyzes damage caused by attacking finance organizations in the Russian Federation through activization of hacker groups. The mentioned attacks were mainly directed at banking cards’ processing, cash machines and the SWIFT system, an international system of transmitting finance information and payments. The growth in hacker penetrations can be seen in all sectors of Russian economy, it is based on informational confrontation and aims at destabilization of considerable objects of critical information infrastructure. Today special attention is paid to attacks of hacker groups, which get financing from states and criminal groupings in order to exert influence on the leading banks of the world. The author investigated the key methods of attacks of finance organizations. The role of the Federal service on technical and export control and the Department of information security of the Bank of Russia was described. By assessing the impact of computer attacks the author came to the conclusion that the Russian banking sector is vulnerable to computer attacks on informational systems that could cause damage not only to small but also big credit organizations, which possess over 60% of the Russian banking sector assets.  

scholarly journals THE ROLE OF THE CENTRAL BANK IN THE FUNCTION OF IMPROVEMENT OF LIQUIDITY OF BANKING SECTOR IN BOSNIA AND HERZEGOVINA

2019 ◽  
Vol 12 (24) ◽  
Author(s):  
Goran Mitrović ◽  
Živko Erceg
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Bosnia And Herzegovina ◽  
Banking Sector ◽  
Banking System ◽  
Policy Instruments ◽  
Foreign Banks ◽  
Dayton Agreement ◽  
The Impact

The monetary policy of Bosnia andHerzegovina is rather limited because it is basedon the principles of a currency boardcharacterized by the impossibility of implementingthe basic monetary policy instruments incomparison with the monetary policy of theEuropean Union. However, the constant presenceof European integrations should point the need fora more drastic change in the monetary policy ofBosnia and Herzegovina. By entering theEuropean Monetary Union (EMU), the monetaryterritory of Bosnia and Herzegovina will becomeone of the branches of the European Central Bank(ECB). In addition, it is not difficult to concludewhy the Law about the Central Bank of Bosnia andHerzegovina has been adopted with the first lawsof the Dayton Agreement, if it is known that thelargest part of the banking system, and thereforethe financial market, is owned by foreign banks.This work will point out the significance of theCentral Bank of Bosnia and Herzegovina, as oneof the most important factors for maintaining thepermanent liquidity of the banking sector inBosnia and Herzegovina. The possibilities andlimitations of the Central Bank of Bosnia andHerzegovina will be determined, with theassumption of macroeconomic sustainability overa longer period of time. The need of reforming thebanking system in Bosnia and Herzegovina will beanalyzed through the constant implementation ofthe Basel standards with the increasingparticipation of foreign banks in the Bosnia andHerzegovina. It will be determined the impact ofthe implementation of the Basel III in the bankingindustry in Bosnia and Herzegovina and itsconsequences on the banking and economicsystem.models, on the ways of financing theelimination of adverse consequences of naturaldisasters.

scholarly journals THE IMPACT OF M&A TRANSACTIONS ON THE GROWTH OF THE BANKS’ MARKET VALUE

2021 ◽  
Vol 5 (40) ◽  
pp. 45-54
Author(s):  
L. Prymostka ◽  
N. Pantielieieva ◽  
I. Krasnova ◽  
V. Lavreniuk ◽  
O. Lytvynenko
Keyword(s):  
Economic Development ◽  
Mergers And Acquisitions ◽  
Banking Sector ◽  
Jel Classification ◽  
Economic Indicators ◽  
Level Of Economic Development ◽  
Banking Business ◽  
Economic Trends ◽  
The Impact ◽  
The Relationship

Abstract. The globalization of markets, the need to comply with modern economic trends and introduce new technological solutions to increase the profitability of the banking business have significantly intensified the processes of mergers and acquisitions in the banking sector. M&A processes are long and complex, their results are difficult to forecast in lack of actual detailed research. The diversity of the results of the available research requires updating the data based on larger volumes of transactions and larger time intervals. The purpose of the article is to substantiate two hypotheses: first, the impact of M&A agreements especially on the increase in the value of banks; and impact of factors that show economic development level on the value of banks. The object of the study is the relationship between the value of commercial banks in domestic and foreign financial markets, M&A agreements, as well as economic indicators published by the World Bank and measuring the level of economic development of countries. The article uses statistical modeling method. The constructed model of linear regression allows to state that the fact of influence of M&A on growth of cost of consolidated banks is fair for 54.8% of cases. The study shows that the M&A processes have the greatest impact on the value of banks in the interval of 3—5 years after the conclusion of the agreement. Analysis of the relationship between economic indicators and the growth of bank value shows that the greatest impact on the value of banks has percent of the growth of GDP and GDP per capita, but the low value of the determinant at 22.9% indicates a low dependence of bank value on the level of economic indicators in general. It was found that external factors do not directly affect the growth in the value of banks in the process of M&A transactions. The question of expanding the system of factors that will influence the M&A processes and, as a consequence, the value of the banks, will be the subject of further research. Keywords: globalization of markets, mergers and acquisitions of banks, consolidation, M&A dynamic, market capitalization, bank value. JEL Classification Е44, Е47, G14 Formulas: 2; fig.: 4; tabl.: 4; bibl.: 14.

scholarly journals Формирование среды реализации цифровых инициатив сотрудников банка

2019 ◽  
pp. 48-54
Author(s):  
Тарас Гриценко ◽  
Жанна Передера ◽  
Анна Теряева
Keyword(s):  
Banking Sector ◽  
Economic Security ◽  
New Professionals ◽  
Advantages And Disadvantages ◽  
Study Results ◽  
The Matrix ◽  
Banking Business ◽  
The Stability ◽  
Definition Of ◽  
The Impact

В работе рассматривается возможность формирования в банковском секторе среды, в которой сотрудники смогут самостоятельно реализовывать цифровые инициативы для развития компании и самообучения. Обоснована необходимость её наличия. Проведен анализ соответствия поставленной проблемы российским и мировым трендам на основе изучения федеральных программ и оценок рейтинговых агентств. В результате исследования разработан бизнес-процесс реализации цифровых инициатив, про-веден конкурентный анализ его преимуществ и недостатков перед традиционным подходом к обучению. The article discusses the possibility of forming in the banking business an environment in which employees will be able to in-dependently implement digital initiatives for the development of the company and self-learning. The necessity of its presence is grounded. The analysis of compliance of the problem with the trends in Russia and the world based on the study of Federal programs and ratings agencies. To attract new staff with the necessary knowledge, banks have a number of tools - business classes, sponsorship programs, mentoring, hackathons, man-agement fights, case-championships, etc. It has been revealed that new professionals with technical skills can solve complex problems and generate products. But it’s difficult for them to dive into the banking sector, study its features and offer their own solutions to problems. It was also revealed that the company is interested in product results that are practice oriented. Com-bining product results and training is only possible by creating an environment in which they can discuss their ideas, find sup-port and implement them. As a result, a business process for the implementation of digital initiatives has been formed, a competi-tive analysis of its advantages and disadvantages over the tradi-tional approach to training has been conducted. strategies. The leading method of research is the definitions according grouping to the principles of the matrix method. It was revealed that the economic security concept is disclosed using factors freely com-bined into three groups (includes: sustainability, protection of interests, ensuring sovereignty), and the most common definitions are built using words-markers: state, security, advantage, process. One of the main study results is an algorithm for constructing the definition of the economic security concept, which allows to model and refine the definition of the concept based on the initial categories, consider-ing the economic context. The author's definition is also formulated, which reflects the interrelation of such components as the protection of interests, the impact of threats, the stability preservation, inde-pendence, ensuring development, self-adaptation and self-reproduction.

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