How diverse are national banking systems? An analysis on banking business models, profitability, and riskiness

2019 ◽  
Vol 49 (2) ◽  
Author(s):  
Giacomo Caterini ◽  
Edoardo Gaffeo ◽  
Lucio Gobbi
Keyword(s):  
Business Models ◽  
Banking Systems ◽  
Banking Business

scholarly journals ROLE OF TECHNOLOGY IN FINANCIAL INCLUSION IN INDIA

2021 ◽  
pp. 1-5
Author(s):  
Arun.K.V
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Business Models ◽  
Formal System ◽  
Financial Inclusion ◽  
Handheld Devices ◽  
Mobile Banking ◽  
Major Step ◽  
Banking Business

Technology and financial inclusion are the popular coinage in banking parleys in the country. While technological upgradation and mobile banking are catching up so fast, financial inclusion is tardy. Financial inclusion is a major agenda for the Reserve Bank of India (RBI). Without financial inclusion, banks cannot reach the un-banked. It is also a major step towards increasing savings and achieving balanced growth. The reach the country is having with technological progress mobile banking has the potential to emerge as a game changer in terms of costs, convenience, and speed of reach. Business models of banks, telecom operators and other stakeholders need to converge. However, the banking industry’s penetration to un-banked areas is still found sluggish. The role of the Indian banker is challenging. At one end of this spectrum lies the demand to achieve financial inclusion as nearly 50 per cent of the population is yet to be covered under the formal system of banking and at the other end lies the task to fulfil the needs of the existing customers. The first priority for banks is to adopt core banking solution (CBS), including all regional rural banks (RRBs). Next, a multi-channel approach using handheld devices, mobiles, cards, micro-ATMs, branches and kiosks can be used. However, it should be ensured that the transactions put through such front-end devices should be seamlessly integrated with the banks’ CBS. In rural areas, where accessibility is a problem, banks are using the microfinance network and business correspondents and facilitators to bring more people under the ambit of banking services. Capitalising on the huge untapped potential in smaller towns and cities and rendering financial services to this segment of people poses a big challenge. Few banks have explored technology solutions to increase the scale of their microfinance portfolios, with the use of smart cards and core banking solutions. KEYWORDS- Technology, Financial Inclusion, Core Banking, Business Correspondents

scholarly journals BANKING SYSTEMS IN ROMANIA AND ICELAND: TWO DIFFERENT WORLDS BUT SIMILAR DEVELOPMENT

2017 ◽  
Vol 6 (2) ◽  
pp. 24
Author(s):  
Claudia Gabriela Baicu ◽  
Mar Wolfgang Mixa
Keyword(s):  
Business Models ◽  
Global Financial Crisis ◽  
Early Stage ◽  
Second World War ◽  
Banking Systems ◽  
Study Results ◽  
Bank Privatization ◽  
The Global Financial Crisis ◽  
Second World ◽  
Similar Development

The novelty of this paper is the comparative analysis of the Romanian and Icelandic banking systems. The study results reveal that despite the fact that Romania and Iceland are two different worlds, there are several similarities between the banking systems of these countries. They include a late development of banking systems, foreigners contributing a great deal to the development of the banking systems in the early stage of evolution. After the Second World War until the 1990s specialized banks operated in both countries. The banking systems of both countries prior to the 1990s were dominated by politics. Liberalization of banking and capital occurred both in Romania and Iceland after 1990; the bank privatization process took place during a similar period (1999-2006, Romania; 1998-2002, Iceland). Before privatization, banks in both countries lacked experience in a new banking “arena”. The global financial crisis greatly affected the two banking systems. Despite similarities, the evolution of the two banking systems was also marked by differences, notably the ownership origin of banks after privatization (foreign dominance in Romania; domestic owners in Iceland) and different business models developed by banks in the pre-crisis period.      

scholarly journals The Effects of Business Model on Bank’s Stability

2021 ◽  
Vol 9 (3) ◽  
pp. 46
Author(s):  
Thuy Thu Nguyen ◽  
Hai Hong Ho ◽  
Duy Van Nguyen ◽  
Anh Cam Pham ◽  
Trang Thu Nguyen
Keyword(s):  
Business Model ◽  
Business Models ◽  
The Philippines ◽  
Policy Implications ◽  
Model Choice ◽  
Econometric Methods ◽  
Banking Business ◽  
Asean Countries ◽  
Negative Impacts ◽  
The Stability

The literature shows little evidence of the effects of business models upon the volatility of banks in developing and fast-growing economies. Hence, this study examines the effects of business model choice on the stability of banks in ASEAN countries. Using GMM and other robust econometric methods on the sample of 99 joint stock commercial banks, we find significant and negative impacts of a diversification model in which banks shift toward non-interest and fees-based activities. We also find that the impacts are different between two groups of countries. For Vietnam, Indonesia and the Philippines, the diversification entails negative impacts on stability while demonstrating positive impacts for Thailand and Malaysia. Based on these findings, we draw policy implications for more sustainable development in the ASEAN banking business.

scholarly journals Banks and Fintechs: How to Develop a Digital Open Banking Approach for the Bank’s Future

2018 ◽  
Vol 11 (9) ◽  
pp. 23 ◽  
Author(s):  
Anna Eugenia Omarini
Keyword(s):  
Business Models ◽  
Banking Industry ◽  
Digital Technologies ◽  
Third Parties ◽  
Economies Of Scope ◽  
Traditional Model ◽  
Market Conditions ◽  
Banking Business ◽  
Revenue Streams

Mutated market conditions, the advent of new players and digital technologies, and a significant regulatory push, are profoundly changing the banking industry. Banking business models may shift significantly from a pipeline, vertical, paradigm, to open banking models where modularity can be an opportunity for banks. Not only are the abovementioned factors representing a threat to the traditional model, but also they are spurring significant new opportunities to pursue new revenue streams. Those opportunities are exploited through new banking paradigms that entail higher levels of openness towards third parties and a crescent number of modular services bundled together. Models can go to mere compliance with the prescriptions of openness of PSD2, to the inclusion of new services, the opening of the banking core and data, and the aggregation of those within a platform experience. Value is created in platforms through economies of scope in production and innovation.This paper has explored the evolution of Fintech and Techfin in the market and the emergence of platform models in banking. It has investigated the evolution of that concept, also introducing an interesting banking case (BBVA), which gives several insights on the choices made toward a Banking-as-a-Platform model within the context of Fintech and Open Banking.

scholarly journals Innovative financial technologies as a factor of competitiveness in the banking

2019 ◽  
Vol 69 ◽  
pp. 00043
Author(s):  
Marina Glushchenko ◽  
Naila Hodasevich ◽  
Natalia Kaufman
Keyword(s):  
Financial Market ◽  
Asset Management ◽  
Financial Services ◽  
Business Models ◽  
Business Processes ◽  
Banking Services ◽  
Currency Exchange ◽  
Banking Business ◽  
Money Transfers ◽  
High Level

The models for the implementation and development of financial services and services are changing due to the global transformation of the financial and economic sphere, which is caused by the emergence of innovative financial technologies. This leads to a fundamental change in the financial market and the factors that determine the leading positions of its participants. Only the use of innovative technologies in the banking business ensures a high level of competitiveness in the market and further expansion of the client base. Banks are rebuilding traditional financial business models through cooperation with FinTech-industry, reforming business processes in areas such as banking services for individuals, lending and financing, payments, money transfers, asset management, currency exchange, insurance, blockchain transactions. The purpose of the article is to identify the main trends in the development of new financial technologies of banking. The authors identify the most important technologies that ensure the dynamic development of the global financial market and the fundamental transformation of the banking business in the past decade. In the article, the authors investigate the degree of their prevalence and the main areas of application in the field of banking, consider the successful practices of implementing of FinTech in the development of financial services.

What drives the disintegration of the loan origination value chain in the banking business

2015 ◽  
Vol 21 (2) ◽  
pp. 288-311
Author(s):  
Enzo Scannella
Keyword(s):  
Vertical Integration ◽  
Value Chain ◽  
Business Models ◽  
Transaction Cost Economics ◽  
Bank Lending ◽  
Bank Loan ◽  
Resource Based View ◽  
Content Type ◽  
Vertical Disintegration ◽  
Banking Business

Purpose – The purpose of this paper is to analyze the vertical disintegration of the bank loan origination value chain. This paper conducts a study on the credit information market from the perspective of the bank’s decision to vertically disintegrate the loan origination value chain. The main aim is to identify the relevant drivers of the decision to vertically disintegrate the credit assessment phase in the lending business. Design/methodology/approach – Transaction cost economics and information asymmetry are the typical perspectives of analysis of the vertical scope of business value chains. Findings – This paper argues that in order to capture the drivers underlying the dynamic evolution of the vertical scope of bank loan origination business models, the above perspectives must be combined and integrated further with a resource-based view and the modularity perspective. Combining managerial and financial perspectives, this paper offers an examination of the drivers of vertical disintegration in the lending value chain and, specifically, in the credit assessment phase. Originality/value – Although the existence of substantial research on value chain vertical integration/disintegration in the literature, none has directly focussed on the credit assessment value chain. It leaves a gap that the paper aims to overcome. The value chain disintegration has deep managerial and financial implications at firm and industry levels, and the comprehension of the rational underlying it is critical to maintaining competitive business model configurations in the bank lending industry.

scholarly journals Bank business modeling and levels of non-performing loans:Perspectives of international risk factors in Ukraine

2019 ◽  
Vol 6 (2) ◽  
pp. 282-296 ◽  
Author(s):  
Olha Vovchak ◽  
Serhij Reverchuk ◽  
Viktoria Rudevska ◽  
Yaroslav Khlan
Keyword(s):  
Risk Factors ◽  
Business Model ◽  
Business Models ◽  
Banking Crisis ◽  
Econometric Models ◽  
Business Modeling ◽  
Banking Business

This article identifies five different banking business models using the k-means method and demonstrates how banks carried out the migration between defined clusters during the banking crisis. The article identifies and links the banks with the business model they are most exposed to in terms of risk of insolvency. The factors that influence the rate of non-performing loans are defined. Developed econometric models will allow banks with certain business models to improve their activity with non-performing loans. The article also analyzes how the amount of loans to related parties can be injected into the amount of non-performing loans.

Newborn Stem Cell Banking Business Models

2015 ◽  
pp. 75-83
Author(s):  
Thomas Moore ◽  
Matthew P. Brown ◽  
John R. Chapman ◽  
Jesse Kramer ◽  
Robert P. Pfotenhauer ◽  
...  
Keyword(s):  
Stem Cell ◽  
Business Models ◽  
Cell Banking ◽  
Banking Business ◽  
Stem Cell Banking

scholarly journals Banking Business Models of the Digital Future: The Case of Latvia

2017 ◽  
Vol XX (Issue 3A) ◽  
pp. 846-860 ◽  
Author(s):  
Irina Japparova ◽  
Ramona Rupeika-Apoga
Keyword(s):  
Business Models ◽  
Banking Business
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