Core Banking System Scalability Review

In carrying out the digital transformation, bank has to find their optimal routes to exploit the Open Banking opportunity and minimize or manage any threat. However open Banking models will be making implication on the increasingly hit from the external parties. It will be new and more unpredictable data volumes as third parties request access to the banking system. Bank has to prepare their Banking system on the Enterprise Architecture, and one of the concerns is on the scalability. For the traditional core banking system, the platform of mainframe and other legacy technology could remain the bottleneck to agility and scalability. In this paper, scalability testing and analysis are carried out to verify whether the traditional banking core system running on the power platform can be scalable to support open banking strategy. The results found were that the core banking system could be scalable, but needed a lot of enhancement on the core banking application side, as well as capacity upgrading on the server side.

Digital Banking Strategy and Financial Inclusion among Commercial Banks in Kajiado County. A Case of Kenya Commercial Bank in Kajiado County, Kenya

Despite the expansive infrastructure of commercial banking in Kenya, a large percentage of the country’s population is excluded from access to formal banking services/products. Further, there is insufficiency of credible information on the manner that digital banking strategies relates to inclusion on access to financial services. Accordingly, this study was in search of bridging the gap with the objective of evaluating the effects of the digital banking strategy on financial inclusion midst commercial banks in Kajiado County (a case of Kenya commercial bank in Kajiado county). This research utilised quantitative methods and espoused descriptive research design. It regarded the 323 Kenya commercial banks outlets (branches and bank agents) in Kajiado County for its target population and obtained a sample size of 179 respondents. A closed-ended questionnaire was administered using drop and pick approach, was developed for gathering data to be acquired from primary sources. This research adopted quantitative analysis approach to yield descriptive statistics and inferential statistics. The study concludes that at 5% error level, digital banking channels, digital financial infrastructure, convenience of digital financial services, have a statistical positive significant effect on financial inclusion among commercial banks in Kajiado county while digital service offering has a statistically insignificant effect on financial inclusion among commercial banks in Kajiado county. The study recommends that the commercial banks in Kajiado should, provide digital banking services to areas that are not easily accessible, acquire adequate infrastructure facilities and adopt efficient technology, offer simple, cost effective and secure services to their customers and provide wide variety of digital service.

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

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.

Sharia Banking Strategy in Improving Gross Regional Domestic Products in Sambas District, Indonesia

The low contribution of Sharia Banking to the growth rate of Gross Regional Domestic Product for seven years is present in the midst of the people of Sambas Regency, who in fact are the majority of Muslims, so it requires an effort to be able to make a bigger contribution. This study aims to formulate any strategies required by Islamic banking in order to increase the Gross Regional Domestic Product of Sambas Regency with a descriptive quantitative approach. Based on the results of the SWOT analysis and continued with the Quantitative Strategic Planning Matrix (QSPM) analysis, there are seven alternative strategic sector development priorities that can be carried out by Islamic banking in order to increase the Gross Regional Domestic Product of Sambas Regency. Based on the assessment of strategic attractiveness, it shows that the most attractive strategy to be implemented is to collaborate with local governments and institutions in society, then follow the strategy of improving the quality of human resources and technology in the second position and then socializing the advantages of Islamic banking to all levels. community, expand networks, determine superior financing products, be active in financing management, and streamline educational, socialization and promotion activities to gather customers.

Customer Retention at Republic Bank in Ghana: A Marketing Perspective

In today's highly competitive environment, customer retention is an essential aspect of every banking strategy. The study explores the retention factors that affect the choices of consumers to remain with the Republic Bank in Ghana. The correlation research design was used for the study within which the simple random sampling technique was used. Data were obtained through self-administered questionnaires to 480 customers of the bank. Correlation and multiple regression techniques were used to examine the relationships between customer satisfaction, service quality, customer trust, customer commitment and switching barrier factors and customer retention. The findings revealed a strong positive relationship between switching barrier, customer commitment and customer retention. The study therefore, recommended that Management should pay attention to customer commitment by investing more into customer relationship management that can increase customers’ dependency and inhibit switching.

ANALYSIS OF MODELS OF BANKING BUSINESS STRATEGY: INTERNATIONAL AND DOMESTIC EXPERIENCE

Introduction. In the current conditions of development, banks are influenced by numerous external factors at the international and national level, as well as economic, political, social and technological trends, which contribute to the need to change the features of their activities. These include, first of all, the review of banks' business strategies as the main reflections of their activities, as well as the use of more effective types of them in accordance with the specifics of the institution. This issue is the subject of extensive research by both domestic and foreign scientists and requires detailed study and determines the relevance of the chosen topic. The purpose of the study is a thorough analysis of existing models of business strategy of banks in the international and domestic banking space. The method (methodology) is presented in the form of general and special methods: analysis and synthesis, comparison and grouping, induction and deduction, logical generalization, etc. Results. The paper examines the main trends in changing the basic business strategy models of banks in the example of the USA and Europe, which manifested in the characteristic transformation of their component balances and revealed the most common types (eg investment banking, retail banking, strategy focused on interbank operations, etc.). The author also identifies different types of business strategies in Ukraine and outlines their main characteristics (for example, universal banking, retail banking, corporate banking, retail financing, investment and frozen banks, etc.). As a result, it was concluded that there is a difference between national and internatinal business strategy models, which is caused by the specific nature of the economic development, the conditions of the crisis, and this opens the way for improvement.

Conventional banks and Fintechs: how digitization has transformed both models

Purpose The digital revolution has substantially changed the business environment. Most banks have acknowledged the importance of new technologies to improve performance and client satisfaction. The development of these innovations has led to the entrance of the so-called Fintechs. This paper aims to evaluate the impact of these transformations on the performance of financial institutions and on their business model. Design/methodology/approach The authors use data envelopment analysis and Malmquist total productivity indices to measure financial institutions’ efficiency and their influence on strategy. Findings The main finding is that clients are more than ever at the core of banking strategy. The irrelevance of distance in basic banking transactions has reduced expenses and contributed to increasing revenues for all financial institutions. Banks will have a card to play in the advice they can bring to their clients. Practical implications This research could be of interest for financial managers who wish to re-examine their current business practices and imagine their business model for the future. Originality/value The contribution will be to further define the correlation between the provision of electronic banking services and its performance by including diversified institutions (conventional banks, Fintechs, Gafas) in the sample from multiple geographic zones to identify differences as regards their efficiency and business practices.

E-Banking Strategy and Performance of Commercial Banks in Kenya

Technological innovations in the aspect of electronic banking (e-banking) have progressively advanced and changed the manner in which banks offer services. The use of varied forms of technological innovations has become a key strategy that influences the competitiveness and performance of commercial banks. Subsequently, banks are investing more in adopting and implementing innovative e-banking strategies. Although numerous studies have inspected the effect of e-banking on banks across the world, the knowledge gap is that few studies have examined the impact of e-banking strategies on commercial banks’ performance in Kenya. The objectives of this study were to predict the impact of agency banking, mobile banking, the use of ATMs, and internet banking on the commercial banks’ financial performance in Kenya. Agency theory, contingency theory, diffusion of innovations theory, and technology acceptance theory formed the theoretical basis of this study. In its research design, the study used the descriptive approach. The target population comprised managers of 40 commercial banks and the study utilized the purposive sampling method to select 100 respondents comprising of 40 senior managers and 60 operations managers. Descriptive statistics, correlation, and regression analysis were used to analyze data. Correlation analysis indicated that mobile banking (r = 806, p = 0.000), agency banking (r = 0.737, p = 0.000), internet banking (r = 0.466, p = 0.000), and ATM banking (r = 0.547, p = 0.000) have statistically significant relationships with the commercial banks’ performance. Findings indicate that e-banking accounts for 71% (R2 = 0.710) of the variation in the commercial banks’ performance. Moreover, the study found out that e-banking strategies of agency banking and mobile banking are statistically significant predictors (p<0.01, while internet banking and ATM banking are statistically insignificant predictors (p>0.01). Based on these findings, the study concludes that rely on e-banking strategies in enhancing their performance, particularly mobile banking and agency banking. Furthermore, the study concludes that ATM banking and internet banking contribute minimally to the commercial banks’ performance in Kenya. Thus, the study recommends banks to optimize mobile banking and agency banking because they are statistically significant predictors while increasing awareness of internet banking and addressing insecurity issues of ATM banking. Thus, further research should consider establishing factors that account for the unexplained variances of 29% in the performance of commercial banks.