“Smart Technologies” as a Mechanism for Regulating Bank Competition in Cross-Border Markets

Abstract

Purpose: The purpose of the study is to verify the hypothesis and determine the prospects for regulating the competition of banks in cross-border markets based on «smart technologies».Design/Methodology/Approach: The methodological apparatus of the study is based on the application of the method of correlation analysis, which determines the relationship between various manifestations of bank competition in crossborder markets with the globalization index and the digital competitiveness index in 2020. Countries, whose banks were included in the world's 100 largest banks according to Standard & Poor in 2019, were chosen as objects for the study.Findings: Cross-correlation of competition indicators of banks in cross-border markets with the globalization index and with the using of «smart technologies» (digitalization) was calculated. Perspective «smart technologies» are identified and the advantages of their application for regulating the competition of banks in cross-border markets are substantiated.Originality/Value: It's proved that «smart technologies» allow people to improve the mechanism for regulating the competition of banks in cross-border markets. Currently, globalization has a much stronger impact on the banking sector than digitalization. Because of this, the opportunities of the digital economy and industry 4.0 are used to a small extent in the banking sector, which impedes the development and «recovery» of competition in the banking sector. For example, banks are expanding the network of ATMs and offices to increase customer focus, although smart technologies allow the development of electronic banking services that are in high demand. The most perspective technologies are smart banking, the Internet of things (IoT), ubiquitous computing (UC), artificial intelligence (AI), and blockchain technology (distributed registry). They provide the advantages of «smart technologies» for regulating the competition of banks in cross-border markets in all «5P» in the marketing mix model. Keywords: «smart technologies» Á Digital economy Á Industry 4.0 Á Regulatory mechanism Á Competition Á Banks Á Banking sector Á Cross-border markets