Evolution of theoretical approaches to the bank essence as the background for the bank business model formation

Onyshchenko Yulia
PHD in Economy, Associated Professor of Banking Department, Odessa National Economic University, Odesa, E-mail:yulia51984@gmail.com

Cite this article:

Onyshchenko Y. (2020) Evolution of theoretical approaches to the bank essence as the background for the bank business model formation. Ed.: D.V. Zavadska (ed.-in-ch.) and others [Doslidzhennya evolyutsiy teoretychnykh pidkhodiv schodo sutnosti banku yak osnova formuvannya biznes-modeli banku; za red.: D.V. Zavadska (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 3-2(276-277), pp. 69-81.

Abstract

The purpose of the article is to study the evolution of theoretical approaches to the essence of the bank as a basis for forming a bank business model. The object of the research is the processes of development and formation of banks in the historical context, as well as the evolution of the bank essence as an economic entity, which contributed to the formation of the background for business model using in bank activity. One of the main problems of the research is the grounding of the advisability of business model forming in the bank's activity. The information base of the study is the Law of Ukraine "On Banks and Banking", as well as scientific publications on the problems of defining the essence of the bank. During the research, general scientific and special methods were used, such as: scientific abstraction, induction and deduction, analysis and synthesis, logical-historical. On the basis of theoretical generalizations in the article it is determined that with the evolution of banking there was an evolution of people's ideas about the essence of banks and their role in the economy. It is proved that the basis for the successful implementation of banking activities at each stage was the trust in the institution that performed the role of the bank. In the article the author proposes a new concept of a banking firm - a bank as a socially responsible institution. The bank's interaction with society should be based on a clear understanding of the bank's social mission. Thus, the concept of "bank as a socially responsible institution" is implemented by coordinating the bank's development strategy with the strategy of financial sector development in the country, which brings the bank closer to its customers and makes its activities more open, accompanied by financial inclusion and financial literacy. The theoretical value is that the theoretical basis for the feasibility of forming and evaluating the bank's business model, as the assessment of changes in the business model allows you to analyze the basic logic of how the firm will change over time to remain profitable in a dynamic environment. The results will be further used to study the essence of the concept of "business model of the bank" and implement a methodology for its use not only in the formation of the model of banking supervision in the country, but also in the activities of each bank as an effective tool for evaluating its development strategy.

Keywords

bank, banking activity, banking system, banking supervision, financial intermediation, banking firm theory, bank business model.

JEL classification: G20, G21, L21, L25

UD classification: 336.7

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