Evaluation of deposit market competition: basis for bank marketing improvement

Abstract

EVALUATION OF DEPOSIT MARKET COMPETITION: BASIS FOR BANK MARKETING IMPROVEMENT Business strategy and market communication of financial intermediaries, including banks require a transformation under the significant impact of the innovation's development and a highly competitive landscape. The article considers bank marketing improvement through evaluation of deposit market competition. Key trends of the deposit market by Ukrainian case were analysed by authors. More than 60% of the total deposit portfolio of Ukraine is concentrated in 5 largest banks making market highly concentrated. Comparative matrix of the existing approaches and models for assessing the level of competition in the banking market was presented in the paper. Using nonstructural Panzar-Rosse model (by calculating the H-statistics as an indicator of the level of competition on the market) and input quarterly data on the bank's financial performance in Ukraine for the period 01.01.2005-01.04.2016, four main factors for bank competition level on the deposit market were identified. They include the rate of bank liquidity; factor describing the effectiveness of bank funding strategy; a factor assessing the availability of the bank's reserve funds and a factor that combines all the key indicators of the country's banking system stability (the ratio of equity capital to total assets, the ratio of the volume of customers' deposits to total assets, the ratio of total unpaid assets to assets, the ratio of total administrative expenses of the bank to its assets). Evaluation results point out on the monopolistic competition with frequent deviations towards absolute monopoly or oligopoly on the deposit market of Ukraine. This trend is consistent with the characteristic of the European Union indicating a further reforming of the banking sector in this segment (for example, full implementation of Basel II, Basel III). Suggested and empirically tested approach for evaluation of deposit market competition could expand tools of bank marketing strategies.

Residential Complexes Built Behind the State Industry Building in the Structure of the Capital’s Administrative Centre of Kharkiv in the 1920s and 1930s

“…Серед сучасних дослідників архітектури раннього модернізму у Харкові найбільш значимими є архівні матеріали [1] та публікації Державної архівної служби України [2], матеріали міжнародних конференцій «Вивчення й охорона спадщини вітчизняного модернізму», започаткованої Харківським національним університетом будівництва та архітектури у 2012 р., що проводиться спільно з Українським осередком DOCOMOMO вже понад 10 років, серед них роботи О. Буряка [3], К. Черкасової [4], О. Ремізової [5], О. Швиденко та ін. Для написання даної роботи значними є публікації науковців, що висвітлюють специфіку професійної роботи за часи архітектурного авангарду (О. Лейбфрейда [6], М. Мєєровича, К. Діденко, А. Антоненко [7], О. Гелли та Л. Качемцевої [8]), графічні матеріали і факти, що наведено у літературних та історичних джерелах, виданих у 1930-х рр. [9,10].…”

Readiness for implementing innovations in banking in advanced and emerging economies

“…First, the latest technologies allow for the acceleration of many banking operations and, accordingly, make it possible to simplify and optimize both operational activities and banking in general (Wolnicki & Piasecki, 2019;Leonov et al, 2019;Ijaz et al, 2020). Second, transformational changes in banking activities (Didenko et al, 2018), namely the reduction of departments and staff involved in customer service and communication, lead to a reduction in bank costs (Dovha and Boychenko, 2017) and the number of direct customer contacts with bank staff, thus limiting the impact of the "human" factor in relationships with customers (Naroș, 2019;Székely et al, 2020). Third, innovations provide a significant competitive advantage for a banking institution in the financial services market (Kozmenko and Vasyl'yeva, 2008;Vasylieva et al, 2014;Adeyinka et al, 2019;Karaoulanis, 2018;Liu et al, 2019), contribute to increase in its profitability (Adeyinka et al, 2019;Goncharenko and Lopa;2020) and the capitalization level (Obidjon, 2017), etc.…”

Creation of Users’ Screen Forms of the Financial Monitoring Automated Information System for Economic Development and Economic Growth

“…Fig.5shows the screen form for entering information about the financial documents of the client an individual[9]. The following data is entered: «ID_Client» (customer ID in the banking system); «Balance» (client's balance sheet); «Transcript_Of_Balanc_Sheet_Items» (transcripts of…”