scholarly journals Transformation of digitalization system of business processes at VTB Bank, PJSC

2021 ◽  
Vol 2021 (2) ◽  
pp. 70-79
Author(s):  
Viktoria Valerievna Mandron ◽  
Nikita Sergeevich Budaev ◽  
Alice Aleksandrovna Pototskaya ◽  
Tatiana Nikolaevna Sidorina
Keyword(s):  
Financial Services ◽  
Information Technologies ◽  
Business Models ◽  
Business Processes ◽  
Banking Sector ◽  
Financial Institution ◽  
Block Diagram ◽  
It Architecture ◽  
The People ◽  
Technological Platform

The article is focused on the increasing role of modern information technologies in banking sector. Today, the informatization process includes not only developing a safe and modern infrastructure, networks, data processing centers, but also creating the so-called digital economy on the basis of this infrastructure, which will bring new sources of income to the state and the people. The banking sector of the Russian Federation is most actively involved in the process of solving this problem. The development of automated business processes in VTB Bank (PJSC) is considered in detail. There is presented an overview of the bank's information technologies in such key areas as artificial intelligence, big data analysis, machine learning, virtual and augmented reality, optical recognition, robotics, robotization of process, blockchain, and chat bots. The dynamics of the main indicators of a financial institution activity is analyzed, an assessment of indicators characterizing the dynamics of changes in capital, net profit and profitability of the bank is presented. It has been stated that the strategic directions for the development of business processes in VTB Bank (PJSC) are constructing an advanced operational and technological platform, increasing the level of digitalization of the banking business, leadership in the financial services market in a number of ecosystems, developing a highly productive organization and culture, as well as growing the customer-centricity of business models. The block diagram of the VTB Bank transformation for 2020–2022 and the target version of the IT architecture of the bank have been illustrated. Changes in the IT architecture are one of the stages of the bank's digital transformation strategy. According to the objectives of the strategy of VTB Bank (PJSC), 100% of financial services should become available to customers online.

scholarly journals International financial fraud: economic and psychological aspects, classification and ways of minimization

2021 ◽  
Vol 189 (5-6(1)) ◽  
pp. 15-25
Author(s):  
Elena Gryazeva ◽  
◽  
Olga Mayorova ◽  
Natalia Malchikova ◽  
Maria Nemkova ◽  
...  
Keyword(s):  
Public Relations ◽  
Financial Services ◽  
Information Technologies ◽  
Business Processes ◽  
Banking Sector ◽  
Global Scale ◽  
Economic Behavior ◽  
Financial Fraud ◽  
Negative Experience ◽  
Corporate Fraud

The active use of the latest information technologies and non-cash payment forms has led to an increase in various types of fraud in the financial sector. Moreover, virtually all spheres of public relations now fall under the risk of fraudulent schemes, starting from financial credit and insurance and ending with foreign economic activity and the Internet. In addition, some other economic factors contribute to the significant spread of fraudulent schemes in modern conditions: a wide variety of new financial instruments (types of money, securities, financial services); rapid growth in financial transactions; leveling barriers to the unhindered movement of money, goods, and services in the process of globalization, which provokes an increase in transnational financial crime. Therefore, in search of tools to preserve existing and generate potential income, especially trusting investors fall into the traps of scammers. With the development of the current economic institutionalism, the principle of rationality in human economic behavior was no longer considered absolute, therefore, representatives of the institutional theory noted the irrational nature of human behavior, including in the field of economics and finance. Modern reality and economic practice are clear evidence of the truthfulness of this thesis. After all, despite the constant warnings of the mass media and other sources regarding various fraudulent schemes, as well as (paradoxically) often their own negative experience, citizens continue to invest in various kinds of fraudulent schemes. According to experts, the main reason is that «people will always strive for «easy» money, and it is unlikely that this desire will ever disappear» (Bruton, 2015). In this paper, we study the possibilities of preventing financial fraud on an international scale. In the context of the complexity of modern business processes, one of the most urgent problems has become the problem of activating the manifestations of corporate fraud. On average, companies lose about 5% of their profits due to corporate fraud, and the annual losses from such economic crimes amount to about USD 4 trillion on a global scale. In Russia, this figure reaches 15% (and we are talking only about losses made public by companies). The lion’s share of fraudulent schemes falls on the banking sector. The implementation of fraudulent schemes in the banking sector has certain features, in particular: fraudulent actions cause damage not only to banks and their depositors, but also negatively affect the stability of the financial system as a whole; such crimes are characterized by high latency, since managers, fearing for the business reputation of their bank, only in isolated cases turn to law enforcement agencies with appropriate statements; identifying the facts of financial fraud is very difficult since fraudsters (often not without the help of bank managers) hide their actions in every possible way and take measures to launder funds obtained by criminal means.

scholarly journals Customers’ Intentions to Switch to Internet-Only Banks: Perspective of the Push-Pull-Mooring Model

2021 ◽  
Vol 13 (14) ◽  
pp. 8062
Author(s):  
Cheolho Yoon ◽  
Dongsup Lim
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Information Technologies ◽  
Business Models ◽  
Internet Banking ◽  
Equation Modeling ◽  
Research Model ◽  
Financial Industry ◽  
Banking Services ◽  
New Business

The advent of fintech is blowing a new wind into the financial industry. New business models have been created and consumers’ access to financial services is higher than ever. Internet-only banks based on advanced information technologies have emerged as a leader in the fintech industry, and these banks are fiercely competing with large banks using internet banking as a weapon to attract new customers. The purpose of this study is to explore the factors that influence customers’ intention to switch to internet-only banking services from traditional internet banking services in Korea. To this end, a research model was developed based on the push-pull-mooring model (PPM), which is a migration theory. The research model was analyzed using partial least squares structural equation modeling (PLS-SEM). The findings will provide the practitioners of the new internet-only bank with strategic guidance for attracting new customers and help practitioners of traditional banks to retain current customers.

scholarly journals Management of ICT Implementations in Enterprises in Poland

2019 ◽  
Vol 8 ◽  
pp. 61-75
Author(s):  
Bogusława Ziółkowska
Keyword(s):  
Information Technologies ◽  
Business Models ◽  
Business Processes ◽  
Value Added ◽  
Digital Transformation ◽  
Social Consequences ◽  
Resource Configuration ◽  
Strategic Approach ◽  
The Face ◽  
Distance Communication

In order to develop and be competitive, modern enterprises, which function in an environment that is globalised, dynamic and subject to strong digitalisation pressure, need to implement information technologies in a way that will allow them, as they achieve further levels of virtualisation, to maintain, and even enhance, their ability to create value added. As business activity is moved to a space shaped by computers and IT networks and distance communication tools and forms are developed, the importance of establishing contacts and relations in the organisation and execution of value-creation business processes increases. Digitalisation of the economy and society is one of the most dynamic changes of our times, opening up new opportunities to create business models, while bringing uncertainty and various threats connected, among other things, with social consequences of the automation of production processes and security in a broad sense. The aim of the presentation is to indicate areas of activity in which information technologies are most often implemented in enterprises in Poland as well as managers' strategic approach to this problem in the face of digital transformation. The paper presents the level of Polish enterprises’ engagement in the process of digital transformation and shows how the progress in terms of implementation of modern ICT in the aspect of customer contacts, managing and executing contacts with suppliers and recipients and resource configuration, impacts the effectiveness of the enterprises surveyed.

Municipal-owned community bank: capital raising dilemma

2019 ◽  
Vol 9 (2) ◽  
pp. 1-23
Author(s):  
Tobias Aloisi Swai
Keyword(s):  
Commercial Bank ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Institution ◽  
Order Theory ◽  
Individual Investors ◽  
Bank Capital ◽  
Regulatory Capital ◽  
Content Type ◽  
Community Bank

Learning outcomes The case introduces student to basic understanding of banking sector in Tanzania as well as the strategies and struggle to raise capital through shareholders’ funds. Application of Banking theory and Pecking order theory is evidenced from the case. The case outlines why the bank struggled to raise capital and what triggers the capital raising strategies. It also give students an opportunity to think about applicable theories of capital structure and bank capital, and strategies the bank could use to rescue its capital crunch in the future. Case overview/synopsis The case provides details of how the Capital Community Bank (CCB) raised its capital through strategic financial engineering which enabled it to raise the minimum regulatory capital required to be licensed as a financial institution unit, to a regional financial institution, to a fully fledged commercial bank. The bank started with a paid up capital of TZS 472.3m in 2002, involving four Local Government Authorities and individual investors. Capital raised to TZS 31.3bn in 2014 and down to TZS 20.6bn at the end of 2016. The minimum regulatory capital required is TZS 15bn, while paid up capital was 16.9bn. With the change of the management team in 2017, the bank is looking for avenues to raise further capital to meet the regulatory limits and continue to survive as a commercial bank, given dramatic changes in the banking sector in Tanzania. Complexity academic level The case is suitable for third year students in Bachelor of Commerce/Economics specializing in banking/financial services. It also suits postgraduate/master's students seeking a Postgraduate Diploma or Master of Business Administration in financial institutions/banking course. 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 1: Accounting and Finance.

scholarly journals The Role of Internet of Things on the Development of Ports as a Holder in the Supply Chain

2018 ◽  
Vol 54 (1) ◽  
pp. 61-73
Author(s):  
Mladen Jardas ◽  
Čedomir Dundović ◽  
Marko Gulić ◽  
Katarina Ivanić
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Information Transfer ◽  
Information Technologies ◽  
Business Models ◽  
Business Processes ◽  
New Technology ◽  
Supply And Demand ◽  
Business Environment ◽  
Weak Links

The new technology greatly affects the way of production, consumption, communication, service delivery and ultimately on the entire supply chain. All stakeholders in the business process must invest in new knowledge and develop new business models to adapt to the changing business environment. Connecting devices over internet (Internet of things) and stakeholders’ synergy open up opportunities for new market achievements as well as for the improvement of business processes both in the supply chain and in ports. The development of information technologies has an impact on the reduction of errors, costs, time of information transfer and transport, inventory reduction and thus on better customization. There should be no weak links in the supply chain, which is especially related to the port and port processes that are the basis of the supply chain network. The port is the core of all activities of the supply chain and is also a place where supply and demand meet.

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.

scholarly journals A Russian Bank in the Khanate of Khiva of NovoUrgench Branch of the Russo-Asiatic Commercial Bank

2020 ◽  
Vol 65 (3) ◽  
pp. 790-803
Author(s):  
Bakhtiyor A. Alimdjanov ◽  
◽  
Denis G. Yanchenko ◽  
◽  
Keyword(s):  
World War I ◽  
Commercial Bank ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Institution ◽  
Stock Exchange ◽  
Unique Character ◽  
Central Russia ◽  
The Russian Empire ◽  
Russian Bank

Cotton farming, being one of the leading branches of economic activity of Turkestan of the beginning of the 20th century, attracted the attention of big investors of the Russian Empire. This article examines functioning of the Novo-Urgench branch of the Russo-Asian commercial bank (RACB) on the basis of the material from Russian State Historical Archive (RGIA): successful and unsuccessful operations, organizational structure, interaction with clients, and its influence on the regional market. The unique character of this branch of one of the largest Russian banks lay in that fact that it was the only lending and financial institution that expanded its operations throughout the entire oasis of Khiva, including territories that were under control of the Khan of Khiva. Both local political and economic elites and entrepreneurs from Central Russia were clients and partners of the Novo-Urgench branch of the bank. Wide-spread liaisons allowed the institution to promptly conquer and maintain, even under conditions of a crisis, its niche on the market of financial services in Central Asia. On the threshold of the World War I, the bank attempted to monopolize cotton farming, working with big clients and even stimulating development of the processing industry. Novo-Urgench branch of the Russo-Asian bank provided help to the local merchantry trying to increase export of raw cotton and to enter both Russia-wide and international markets. For the objective reasons of shortage of liquid assets, underdeveloped infrastructure of the region, swings in stock-exchange and problems with human resources, the Novo-Urgench branch of the Russo-Asiatic bank could not capture and control the Khivan market. During the war years, the Central Asian periphery was under the influence of the problems characteristic of not only the banking sector, but Russian economy as a whole.

scholarly journals Analysis Of Changes In The Structure Of Household Finances Related To Having A Child - Valuation Of Loss Of Benefits

2019 ◽  
Vol 8 ◽  
pp. 76-90 ◽  
Author(s):  
Anna Jędrzychowska ◽  
Ewa Poprawska
Keyword(s):  
Information Technologies ◽  
Business Models ◽  
Business Processes ◽  
Value Added ◽  
Digital Transformation ◽  
Social Consequences ◽  
Household Finances ◽  
Strategic Approach ◽  
The Face ◽  
Distance Communication

  In order to develop and be competitive, modern enterprises, which function in an environment that is globalised, dynamic and subject to strong digitalisation pressure, need to implement information technologies in a way that will allow them, as they achieve further levels of virtualisation, to maintain, and even enhance, their ability to create value added. As business activity is moved to a space shaped by computers and IT networks and distance communication tools and forms are developed, the importance of establishing contacts and relations in the organisation and execution of value-creation business processes increases. Digitalisation of the economy and society is one of the most dynamic changes of our times, opening up new opportunities to create business models, while bringing uncertainty and various threats connected, among other things, with social consequences of the automation of production processes and security in a broad sense. The aim of the presentation is to indicate areas of activity in which information technologies are most often implemented in enterprises in Poland as well as managers' strategic approach to this problem in the face of digital transformation. The paper presents the level of Polish enterprises’ engagement in the process of digital transformation and shows how the progress in terms of implementation of modern ICT in the aspect of customer contacts, managing and executing contacts with suppliers and recipients and resource configuration, impacts the effectiveness of the enterprises surveyed.

scholarly journals Banks in the Context of “New Normality” and the Need to Restructure Business Processes

2018 ◽  
Vol 11 (3) ◽  
pp. 38-45
Author(s):  
A. E. Ushanov
Keyword(s):  
Life Cycle ◽  
Business Models ◽  
Business Processes ◽  
Banking Sector ◽  
Bank Loan ◽  
Loan Portfolio ◽  
Application Procedure ◽  
Official Data ◽  
Financial Result

The reduction by the Bank of Russia of the key rate as a tool for quantitative monetary easing leads to stagnation in the banking sector profitability. The purpose of the research was to disclose the importance of the mainstreaming factors of the banking profits formation. It is shown that the reasons that led to the financial result in 2017 had an unstable, temporary nature. It is revealed that the effect of the bank margin reduction under the “new normality” conditions can be overcome only by increased lending. In the situation when the real quality of a bank loan portfolio does not correspond to official data the introduction of risk-oriented business models into practice is essential for the growth of corporate lending. A progressive model of the loan life cycle is described. It is concluded that banks should use the model more extensively in providing loans to corporate borrowers in order to reduce risks, accelerate the loan application procedure and improve the profitability and competitiveness of credit institutions.

MINIMIZING THREATS TO A CREDIT INSTITUTION INFORMATION SECURITY AT THE BANKING SERVICES MARKET

2020 ◽  
Vol 10 (9) ◽  
pp. 1894-1905
Author(s):  
I.V. Logvinova ◽  
◽  
A.V. Zhigunova ◽  
Keyword(s):  
Information Security ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Institution ◽  
Main Task ◽  
Credit Institution ◽  
Banking Services ◽  
Financial Products ◽  
Strategic Position ◽  
Modern Technologies

This article discusses the problems of minimizing threats to information security in the banking sector and identifies possible means to facilitate this process. By attracting funds and lending to clients on a commercial basis, banks are significantly expanding on an ongoing basis the network of services in the domestic financial and credit sector, have had a noticeable impact on the country’s economy. Simultaneously with the emergence of commercial banks, a number of problems arose that did not exist before, the main one of which is the need to ensure the safety of banks from criminal encroachments, first of all, informational. The problem of security for a commercial bank is relevant not only for the owners and shareholders of the bank, but also for employees and clients of the bank. Problems arising in the banking sector can negatively affect the general population and the situation in the state, therefore, it is necessary to approach the solution of this problem from a strategic position. The development of modern technologies in the banking sector expose banks to completely new and more dangerous threats. In order to prevent and repel threats to the bank’s security, any financial institution is forced to constantly deal with the problem of ensuring its own security. It should be noted that the provision of banking services is inextricably linked with the use of funds and financial products with various functions and qualities. Moreover, a credit institution is a product of a complex of financial services, both for passive and active tasks, and the main task of any bank is to offer customers a whole range of products that fully meet their needs.

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