The level of digital transformation affecting the competitiveness of banks
Open Access
- 5 March 2021
- journal article
- Published by LLC CPC Business Perspectives in Banks and Bank Systems
- Vol. 16 (1), 81-91
- https://doi.org/10.21511/bbs.16(1).2021.08
Abstract
The article examines the competitiveness of Ukrainian banks influenced by economy digitalization, the dynamic spread of electronic payments and e-commerce, as well as innovative technologies aimed at providing digital services. When shifting to an Online Platform business model, a bank can expand its range of banking products, attract more customers, thereby forming a competition policy and gaining competitive advantages. The paper aims to assess the digitalization level affecting the general competitiveness of banks and its components based on Ukrainian banks. For this purpose, the following methods were used: standardized input statistical indicators, comparison and ranking, a cluster analysis, and a regression and correlation analysis. The cluster analysis confirmed the current role of digitalization as a competition driver that determines the competitive advantages of banks and creates additional opportunities to expand the customer base and the range of services. The correlation and regression dependence of the competitive position identified by the activity indicators of certain banks on the level of competitive digitalization confirmed a close direct impact on the competitive position of personal deposits arising from the development of digital banking technology; the pre-tax income, profiles of assets and personal loans, and corporate deposits are subject to a significant direct impact, while the weakest direct impact determines corporate loans. The foregoing substantiates the feasibility of large-scale introduction of innovative digital technologies by banks to maintain competitive positions in the banking sector of the economy. Applying the proposed approach based on certain regression equations, managers of Ukrainian banks will be able to assess the efficiency and make appropriate decisions concerning investing in digital tools and services.Keywords
This publication has 20 references indexed in Scilit:
- Automatic machine learning algorithms for fraud detection in digital payment systemsEastern-European Journal of Enterprise Technologies, 2020
- Factors Influencing Digital Bank PerformancePublished by Springer Science and Business Media LLC ,2019
- MEASURING COMPETITIVENESS OF BANKS IN LATVIACopernican Journal of Finance & Accounting, 2017
- Internet banking service quality and its implication on e-customer satisfaction and e-customer loyaltyInternational Journal of Bank Marketing, 2016
- Examining the key dimensions of mobile banking service quality: an exploratory studyInternational Journal of Bank Marketing, 2016
- Financial institutions using social media – do consumers perceive value?International Journal of Bank Marketing, 2016
- Identification of the critical level in accumulation of systemic financial risk in the economy of countries of Central and Eastern EuropeProblems and Perspectives in Management, 2015
- Assessing competition in the banking industry: A multi-product approachJournal of Banking & Finance, 2015
- Wireless Sensor Network Clustering Using Particles Swarm Optimization For Reducing Energy ConsumptionInternational Journal of Managing Information Technology, 2014
- Assessing Competition with the Panzar-Rosse Model: The Role of Scale, Costs, and EquilibriumThe Review of Economics and Statistics, 2012