Development of adaptive assessment of business model in bank’s strategic management system

Serhieieva Olena
PhD (Economics), Associate Professor, Department of Banking, Odesa National University of Economics, Odesa, Ukraine, E-mail:lenasergeeva2007@ukr.net, ORCID ID: https://orcid.org/0000-0002-5523-3894

Cite this article:

Serhieieva O., (2024) Development of adaptive assessment of business model in bank’s strategic management system. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Formuvannja adaptyvnoi ocinky biznes-modeli v systemi strategichnogo menedzhmentu banku; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 9 (322), pp.47-53.

Abstract

The use of the business model as an element of the bank’s strategic management is a fundamental approach that ensures the alignment of market activity goals, available resources with the landscape and dynamics of the operating environment and stakeholders’ expectations. Transforming and adapting the business model according to the strategic goals and changes in the operating environment, banks can ensure their competitiveness, financial stability and success in the long-term. The analysis of research of adapting the business model of banks under conditions of uncertainty proved that the substantiation of proposals for determining the conditions under which banks work in order to initiate effective management decisions is an urgent issue. It is proposed to develop a model for adaptive assessment of the bank’s business model in the strategic management system with the systematization of tools, which will allow to create the information basis for making effective management decisions at the strategic level. As a result of its introduction, banks will be able to: optimize the allocation of resources, capital and productivity management; improve risk management and increase resilience to external shocks based on internal resources and management mechanisms; better meet the needs and expectations of customers. Understanding customer preferences, behaviors and demographics, using new technologies, banks can adapt products, services and sales channels to provide the highest value and service quality, which in turn increases customer loyalty, contributing to the bank’s sustainable competitiveness. It is noted that the development and implementation of the bank’s business model, caused by changes in the banking industry, are largely shaped under the influence of factors that are formed at the national and global levels and have a diverse nature of origin. Considering the above, the banks’ business model assessment is closely related to the strategic management, which calls for adaptation or radical transformation as a means of ensuring long-term sustainability and competitiveness.

Keywords

bank, bank business model, identification of bank business models, strategic management.

JEL classification:E580; G210; C510; DOI: https://doi.org/10.32680/2409-9260-2024-9-322-47-53

UD classification: 336.201.2:336.01

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