The mechanism of integration interaction between a bank and an insurance company (for example "Sovcombank Insurance" JSC)

The article examines the theoretical and practical aspects of the integration interaction between an insurance company and a bank. The process of integrating the resources of "Liberty Insurance" JSC by "Sovcombank" Group is analyzed; the causes and consequences are identified. The directions of further development of the established company "Sovcombank Insurance" JSC, aimed at improving the efficiency and profitability of the business, are listed. The main advantage for "Sovcombank Insurance" JSC is the synergy with all the bank's business lines for further development of products and services. For Sovcombank PJSC, it is the consolidation and completion of a large – scale business transformation, turning into a universal bank that provides a full range of services.

Customers’ awareness and knowledge level of fraudulent acts in electronic banking in Ghana: evidence from a universal bank

Purpose This study aims to assess customers’ awareness and level of knowledge on electronic banking fraud. Design/methodology/approach A well-structured interviewer-assisted questionnaire was used to collect data from 400 clients of a case study bank. Data were analysed using descriptive statistics. Kendall’s coefficient of concordance (W) statistic was also estimated to track and rank the fraudulent activities identified by the respondents with respect to electronic banking. Findings This study found that respondents were aware of most of the specific forms of electronic banking fraud. Firstly, automated teller machinfraud is the most common scam for which customers are aware of. Secondly, institutional factors such as lack of monitoring and education of clients are major factors which expose the bank and clients to fraudulent electronic banking acts. Thirdly, the most effective action that can be taken to prevent fraud in the bank is increased security and personal identification number (PIN) protection education. Research limitations/implications This study focusses on a universal bank and uses data from customers of only one branch of the bank to achieve the research objectives. Originality/value One uniqueness of this paper is in the adoption of Kendall’s coefficient of concordance (W) statistic to track and rank fraudulent banking activities. The findings will allow financial institutions to know the forms of current and innovative electronic banking fraudulent activities that customers are aware of. It will also enable the banks to find ways to inform their clients about emerging electronic banking fraudulent activities to prevent them from falling victims.

Nemesis

Banking crises occurred on both sides of the Atlantic during the Great Depression. Troubled universal banks were at the center of each crisis. The first U.S. banking crisis in late 1930 was caused by the failures of two large financial conglomerates. In May 1931, the collapse of Austria’s biggest universal bank triggered a series of crises that swept through Europe. Austria, Germany, Belgium, and Italy took extraordinary measures to rescue their largest universal banks. In the U.S., the Reconstruction Finance Corporation provided loans that prevented the failures of two large universal banks in 1932. However, the RFC allowed the two biggest banks in Detroit to fail in February 1933, thereby precipitating a nationwide banking panic. In contrast, Great Britain and Canada did not experience systemic banking crises despite serious economic downturns. The separation between commercial banks and securities markets in those two nations prevented financial contagion that could have undermined their entire financial systems.

Growth Growth of Universal Banking in the Philippines: A Correlational Study with Economic Growth

Banks are believed to instrumental to economic growth because it provides the financial backbone needed to spur economic development through business creation and expansion. A healthy and resilient banking sector signals economic growth and development that is sustainable. The efficient transfer of funds from those that has surplus of them towards those that need them has been made possible due to the intermediation of banks. In the Philippines, banking formally started in 1851 with the establishment of the Bank of the Philippine Islands, which up to this day, stands to be one of the country’s biggest and most stable universal bank. This study analyzes how universal banks grew over the years, and determines whether a correlation exists between universal bank growth and economic growth, using the variable of GDP growth rate as proxy for economic growth. The study showed that at the most recent periods, universal banks’ ROE and ROA are negatively correlated with GDP growth rate. Key words: Universal banks, History of banking, Economic growth of the Philippines, GDP growth rate

Whom you borrow from matters: universal banks and firm innovation

Purpose The purpose of this paper is to empirically investigate universal banks as an important source of external funding and their effects on borrowing firms’ innovation outputs. Design/methodology/approach The authors employ regression analyses including a difference-in-difference approach and a two-sided matching method to ensure the robustness of the findings. The authors further explore some potential channels and boundary conditions for the main findings. Findings The authors find that borrowing from universal banks is negatively associated with the quantity of firm innovation, but not the quality of firm innovation. The authors document that borrowing firms reduce their R&D expenditures and rely more on external partners to produce innovation outputs after loan originations from universal banks. The negative relation between universal bank lending and the quantity of firm innovation is more prominent for unrelated innovation and for financially constrained firms. Research limitations/implications The evidence reveals that universal banks may use their informational advantage and market power to limit their corporate borrowers’ investment in innovation activities. Originality/value The paper extends the line of research on the source of financing and firm innovation, and establishes a robust relationship between capital market and product market.

Chandra Shekhar Ghosh: founding Bandhan

Learning outcomes To understand social entrepreneurship and a social entrepreneur; to identify a social problem and develop a business idea; to understand the theory of entrepreneurial opportunity recognition; and to understand microfinance and its impact in the lives of the poor. Case overview/synopsis The case traces the journey of its founder Chandra Shekhar Ghosh from being a small time entrepreneur in microfinance to being the owner of a universal bank named Bandhan. Bandhan bank started its operations on August 23, 2015 with 501 branches, 2022 service center and 50 ATMs across 24 states. It had 14.3 million accounts, around 105 billion loan book and 19,500 employees. The founder of Bandhan bank, Chandra Shekhar Ghosh, an Ashoka fellow had won numerous awards such as Entrepreneur with Social Impact Award by Forbes (2014), Entrepreneur of the Year by Economic Times (2014), Skoch Financial Inclusion Award (2011), Entrepreneur of the Year Award (2014) by AIMA to name a few. In 2014, Bandhan was also recognized as Global Growth Company by World Economic Forum. Complexity academic level The case is suitable for analysis in a MBA level course on social entrepreneurship. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.