Academic journal article Journal of Economics and Economic Education Research

Electronic Banking: Tool of Transforming the Interaction between Banks and Clients and Improving the Service Quality of the Russian Banks

Academic journal article Journal of Economics and Economic Education Research

Electronic Banking: Tool of Transforming the Interaction between Banks and Clients and Improving the Service Quality of the Russian Banks

Article excerpt

INTRODUCTION

Financial globalization and accelerating improvement of the financial and information technologies have a strong impact on the banking business; expand innovative and technological capabilities of banks; qualitatively change the needs of clients in banking services; form new demand on the quality of banking services.

During the process of its development, banking services have evolved from simple to complex services, satisfying related customer needs. The development of electronic banking services is a consequence of the transformation of individual banking services to a wide range of standardized automated services. Electronic banking service is a new technological way of production of the banking products that meet the needs of customers via electronic banking technologies .

Despite the fact that electronic banking services are the result of the development of information technology, it still has all the features of banking services sold in the traditional way: inconstancy in the quality of services, contractual nature of the banking services, service length, secondariness of needs satisfied via banking services.

Among the features of electronic banking services, as the way to implement a new phase of the relationship between banks and their customers, it should be noted the following: abstractness, impersonality, accessibility, extraterritoriality, service interactivity, multiple channels of access.

The features of the modern market of electronic banking services consist in the fact that the new opportunities created by widespread adoption of e-finance, on the one hand, move banks near to customers that allow offering new products and services. This enable both significantly simplify and speed up a great amount of transactions and establish control over their implementation. On the other hand, the banking sector and the economy as a whole have to be changed. In the banking business these changes affect the way how banks work with clients and transform the system of relations "Client-Bank" .

The development of e-banking service provides a number of advantages to financial organizations, such as:

* cost savings and its optimization;

* increase in average cash balances in the clients' accounts;

* increase of the customer satisfaction and loyalty, also by improving the quality of banking services;

* expansion of the customer database and the number of operations and services provided;

* revenue growth due to the bank's ability to provide services to customers twenty-four hour a day, as well as by expanding the customer database and the number of operations and services provided.

The quality of banking services is considered as one of the effectiveness factors of commercial bank performance, so-called triad: operational capabilities - service quality - performance (C-SQ-P). Other researchers specify that the most important is the analysis of the three drivers of efficiency (operations, service quality and profitability) at the same time within the common framework of efficiency benchmarks.

Other researchers proves the need of changes in the traditional concept of commercial bank in Russian practice from financial intermediaries to a company that produces specific financial products, effectiveness of which depends primarily on the degree of the customers' needs and society as a whole. Good e-service performance impacts customer satisfaction positively, but does not override unsatisfactory performance in other areas. In the increasingly competitive market, one of the way for banks to increase their productivity and improve service quality, while reducing their cost, is the investment in information technology [9]. Accordingly, there has been a growing trend to switch from personal banking services to electronic services with a matching improvement in service quality.

THEORY

The market of electronic banking services in Russia in recent years shows a reasonably high dynamics both in qualitative changes in trends and quantitative indicators. …

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