Pavlo M. Rubanov, Serhiy V. Lyeonov
Transformation of the Bank's Credit and Investment Activities in the Digital Economy: Participation in Peer-to-Peer Lending Models
(original language – Ukrainian)
https://doi.org/10.21272/mer.2018.81.03
The article analyzes the main directions of the impact of digital economy on the credit and investment activity of banking institutions, namely: the transformation of existing types of financial services and the emergence of new products; improvement of banking technologies and processes; the emergence of a new intermediary in the financial market – FinTech startups. The authors carried out a comparative analysis of peer-to-peer loans and traditional bank lending in 4 groups of criteria: the nature of the mediation function; the performance of the function of assets transformation, providing liquidity and conducting payment transactions; participation in monitoring and processing of data, assessment of credit quality; participation in credit risk management. Based on comparison of banks and FinTech startups, the following advantages of banks were defined: large client base, powerful personnel potential, work experience and customer loyalty. A comparative analysis of banks, FinTech startups and peer-to-peer lending platforms made it possible to identify the main ways of adapting banks to the transformational changes in the financial market in the digital economy: acceptance of new principles of credit platforms by banks (convenience, flexibility, low cost and manufacturability) and development of partnership with Fintech-segment. The authors proposed to consider the following options for participation of banks in peer-to-peer lending models and cooperation with FinTech startups: a clear separation of activities between the bank and a technology partner with consumers of financial services (the technology partner accompanies the online platform, the bank provides a full range of financial products); close cooperation between the bank and the technological partner (joint creation of alternative traditional financial products); active exploration and use of innovative mobile and other virtual channels of customer interaction by the bank.
Key words: bank lending, banking, digital economy, FinTech startup, peer-to-peer lending, peer-to-peer technology.
Placed in №3, 2018.
Affiliations:
PAVLO M. RUBANOV, C.Sc. (Economics), Associate Professor, Associate Professor of the Department of Finance and Entrepreneurship, Educational and Scientific Institute of Finance, Economics and Management the name of Oleg Balatsky, Sumy State University
SERHIY V. LYEONOV, D.Sc. (Economics), Professor, Department of Economic Cybernetics,
Education and Research Institute for Business Technologies «UAB», Sumy State University
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