Changes in Banking Business Models Driven by Technological Innovations

• Published in: International Conference on Actual Problems of Electronic Instrument Engineering proceedings pp. 447 - 451
• Main Authors: Stepanova, Svetlana V., Karakchieva, Viktoria L.
• Format: Conference Proceeding
• Language: English
• Published: IEEE 01.10.2018
• Subjects: Bank; Biological system modeling; business model; innovative technologies; Online banking; Organizations; Standards organizations; Technological innovation
• ISSN: 2473-8573
• DOI: 10.1109/APEIE.2018.8545543

The article presents the findings of a research on the impact of technological developments on business models in banking organizations. Technological advancements create added value for the recipients of financial services. In this context, credit risks continue unabated, while cyber and operational risks are only increasing. Innovations spur the banks to reinvent their distribution channels, key partners, resources patterns, and revenue streams. Ignoring the changing business landscape may produce customers' dissatisfaction and backlash or result in innovative risks exposures. The authors identify the factors that shape the corporate governance arrangements with banking organizations, emphasize the importance of developing a new risk management framework that could adequately meet the technological challenges and outline the key factors that are likely to shape banking technological development patterns in the nearest future.