Customer-centric approach in the banking sector based on blockchain principles

Vasyltsiv Nadia
PHD, Associate Professor Department of Marketing and Logistics, Lviv Polytechnic National University, Lviv, E-mail:Nadiia.M.Vasyltsiv@lpnu.ua, ORCID ID: https://orcid.org/0000-0002-4127-2163

Cite this article:

Vasyltsiv N. (2023) Customer-centric approach in the banking sector based on blockchain principles. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Kliiento-oriientovanyi pidkhid bankivskoi sfery na zasadakh vykorystannia blokcheinu; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 10 (311), pp. 23-29.

Abstract

The article presents the results of a study on the customer-centric approach in the banking sector based on blockchain principles. Various general scientific and specialized research methods were applied in the process of writing the article. The description of information and communication technology (ICT) tools was carried out using inductive and deductive methods. A graphical method was employed to schematically represent blockchain technology. An abstract-logical method was used in theoretical generalizations and conclusions. The main directions of development in the banking sector based on blockchain were investigated, including payment services and artificial intelligence systems. ICT tools that allow banks to automate transaction processing and calculation processes, analyze customer data, and provide personalized services based on their individual needs and behavior were explored. The enhancement of security and information protection systems was also discussed. The need to study and develop possible diversification options in banking activities, accompanied by appropriate legislative acts and focused on the practical implementation of a customer-centric approach, was justified. It was argued that the overall effectiveness of blockchain implementation in the banking sector depends on a correct understanding and integration of this technology into banking processes, as well as collaboration with regulators and standardization in the blockchain industry. Problems in the Ukrainian banking fintech market were identified, including economic instability in the country, significant currency exchange rate fluctuations, deficiencies in national fintech-related legislation, unfavorable domestic investment environment (foreign and Ukrainian), lack of interest in the investment process by enterprises, insufficient quality and uneven development of existing infrastructure (telecommunications and the Internet), a shortage of experts in new finance and information technology fields, and insufficient attention to the technical capabilities of the banking system, among other issues.

Keywords

customer-centric approach, banking, blockchain, fintech market, fintech innovations.

JEL classification: E440, G140, G210; DOI: 10.32680/2409-9260-2023-10-311-23-29

UD classification: 338.46

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