Methodological basis for the bank business model formation

Onyshchenko Yulia
PHD in Economy, Associated Professor, Associated Professor of Banking Department, Odessa National Economic University, Odesa, Ukraine e-mail: : yulia51984@gmail.com, ORCID ID: http://orcid.org/0000-0002-3114-4504

Cite this article:

Onyshchenko Y. Methodological basis for the bank business model formation. Scientific Bulletin of the Odessa National Economic University. 2021. № 5-6 (282-283). pp. 27-33.

Abstract

Introduction. In recent years, banks have made significant investments in the financial technology development, which reflects their expectations for significant changes in the banking sector. Increasing the pace of financial technology implementation in the bank activity is gradually leading to changes and complicating of their business models. And the viability of banks' business models will determine future of these banks in the next 10 years. Purpose.The purpose of the study is the substantiation of theoretical bases of bank business model formation on the basis of bank mission. The object of the research is the processes of bank business model formation with understanding of main basic elements of this proccess. Results. In the article the development of theoretical thoughts in understanding the essence of the concept "business model" has been researched. There are three theoretical approaches to the interpretation of this concept: structural-logical, systemic and strategic. In the structural-logical approach, business model is defined as conceptual tool (scheme) that allows to describe the logic of creating and obtaining value in the firm. The systemic approach is based on the definition of business model as system that manifests in components and related processes and relationships. The strategic approach assumes that business model formation is related to the strategy of the firm and is its reflection. It is proved that these approaches can complement each other in the bank business model formation, but it is necessary to take into account the main elements of this process. It is justified that the key role in the formation of effective business model plays bank mission. Conclusions. With the development of the digital economy, business processes in the financial market are accelerating, which requires the search for new tools of strategic management and planning, one of which may be the " bank business model" in the case of its clear formalization at the legislative level. For most domestic banks, it is possible to clearly trace the construction of the chain "mission → purpose of the bank → strategic goal", but business model hasn`t been used yet, and has been identified with the bank development strategy.

Keywords

bank, business model, business model of the bank, mission, activity purpose, strategic goal.

JEL classification: G200, G210, L210, L250 DOI: 10.32680/2409-9260-2021-5-6-282-283-27-33

УДК: 336.713:005.3

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