Social banking in the conditions of digitalization

Nianchuk Natalia
PhD in Economics, Associate Professor of the Department of Banking, Odesa National University of Economics, Odesa, Ukraine, E-mail:natalya.nyanchuk@gmail.com, ORCID ID: https://orcid.org/0000-0001-7686-4727

Velykotskyi Viacheslav
Lead Software Engineer, EPAM Ditigal, Digital Engagement Practice, Kyiv, Ukraine, E-mail:viacheslav.velykotskyi@gmail.com, ORCID ID: https://orcid.org/0000-0002-0442-6837

Cite this article:

Nianchuk N., Velykotskyi V. (2024) Social banking in the conditions of digitalization. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Socialnyj banking v umovah didzhytalizacii; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 11 (324), pp.49-54.

Abstract

The modern world is characterized by uncertainty, an increase in the number of geopolitical and climatic risks. Therefore, in recent years, we can observe an increase in the number of regional military conflicts and climatic disasters, the consequences of which are increasingly becoming global in nature. In this case, the social problems of poverty, housing provision, preservation of the level of culture, regardless of technological development, do not acquire the necessary solution. This contributed to the formation of the paradigm of sustainable development, which is attracting more and more attention from scientists around the world. The basis of the development of this paradigm is financial provision, where banks as institutions play a key role. This article is devoted to the study of social banking as a special type of banking activity focused on ensuring sustainable development. The purpose of the article is to consider how social banking develops in conditions of digitalization. Digitalization as a modern all-encompassing phenomenon permeates all spheres of human life, therefore today the development of any indirect activity cannot be considered through the prism of this phenomenon. During the scientific research, the methods of analysis, synthesis, generalization, comparison and graphic method were used. On the basis of the conducted research, it was established that social banking forms a new type of thinking aimed at obtaining primarily socially important effects, and not financial results. The conducted analysis made it possible to establish that the balance between the development of digital technologies and social banking exists in high-income countries, while in countries where social banking is particularly important, that is, poor countries, digital technologies are used by a much smaller number of the population. However, the spread of digitalization in such countries creates conditions for faster and larger-scale development of social banking services. It is practically justified that in Ukraine there are elements of the introduction of social banking against the background of cooperation between the state and the banking sector. Prospects for further scientific research should be aimed at solving the issue of creating independent social banks in the banking system of Ukraine in the future.

Keywords

bank, social banking, digitalization, social effect, sustainable development.

JEL classification:G210; L860;DOI: https://doi.org/10.32680/2409-9260-2024-11-324-49-54

UD classification:336.71:004.738.5

References

1. Bogashko O.L. (2019). Social banking as a promising direction for improving the efficiency of commercial banks. Konferencii dergavnogo universitetu “Gitomirska politechnika”. Retrieved from https://conf.ztu.edu.ua/wp-content/uploads/2019/01/219.pdf. (accessed 13 Octoder 2024). [Іn Ukrainian].
2. Savluk S., Dubas A. (2023) Social banking in post-war reconstruction. Scientia fructuosa. No 3. S. 4-16. DOI:10.31617/1.2023(149)01 Retrieved from https://journals.knute.edu.ua/scientia-fructuosa/article/view/1836/1709. (accessed 25 October 2024). [Іn English].
3. Ilykiv N.V., Tvorudlo O.I .(2022) Analysis of the banking social lending market in Ukraine. SCIENTIFIC COLLECTION «INTERCONF» №105, S. 67-84. DOI: 10.51582/interconf.19-20.04.2022.007 Retrieved from https://archive.interconf.center/index.php/2709-4685/article/view/51. (accessed 10 October 2024). [Іn Ukrainian].
4. Primostka O. (2016) Theoretical approaches to defining the essence of social banking. Visnik ONU imeni I.I. Mechnikova. Ch. 21. Issue 3. Retrieved from http://visnyk-onu.od.ua/journal/2016_21_3/38.pdf (accessed 27 October 2024). [Іn Ukrainian].
5. Primostka O. (2016) Identification and optimization of social banking risks. Naukoviy visnik Ujgorodskogo nacionalnogo universitetu. Issue 6. Part 2. S. 175-178. Retrieved from http://www.visnyk-econom.uzhnu.uz.ua/archive/6_2_2016ua/45.pdf (accessed 5 October 2024). [Іn Ukrainian].
6. Definition of “Social Banking” (2022) University of social banking. Retrieved from https://www.social-banking.org/wp-content/uploads/2022/01/ISB_Definition_Social-Banking-2021_FINAL.pdf. (accessed 1 October 2024). [Іn English].
7. Digitalisation of finance (2024). Basel Committee on Banking Supervision. Retrieved from https://www.bis.org/bcbs/publ/d575.pdf. (accessed 25 September 2024). [Іn English].
8. Global Digitalization in 10 Charts.(2024) World bank group. Retrieved from https://www.worldbank.org/en/news/immersive-story/2024/03/05/global-digitalization-in-10-charts (accessed 29 September 2024). [Іn English].
9. The Global Findex Database 2021: Financial Inclusion, Digital Payments, and Resilience in the Age of COVID-19.(2021) World bank group. Retrieved from https://www.worldbank.org/en/publication/globalfindex#sec3 (accessed 17 September 2024). [Іn English].
10. What is the eOselya affordable housing loan program? Retrieved from https://lun.ua/uk/faq/eoselia?srsltid=AfmBOoq6V4eQPmtwSTmsFuv3Io0drh0fPd4fQGLKOk4bc2ui6yPpNCNj. (accessed 19 October 2024). [Іn Ukrainian].
11. The volume of mortgage lending in Ukraine reached 1.2 billion. UAH in September. Retrieved from https://fintechinsider.com.ua/obsyagy-ipotechnogo-kredytuvannya-v-ukrayini-dosyagly-12-mlrd-grn-u-veresni/ (accessed 27 October 2024). [Іn Ukrainian].