REINVENTION OF NEW BANKING BUSINESS MODELS IN REPUBLIC OF NORTH MACEDONIA
Research Article
REINVENTION OF NEW BANKING BUSINESS MODELS IN REPUBLIC OF NORTH MACEDONIA
ABSTRACT
Banks represent the foundation of every financial system. However, their role as main intermediate and liquidity provider starts fading and many authors argue that “brick and mortar banks” would even disappear. The digital economy brought in rapidly changing technologies, increased knowledge intensity and led to creation of new models of businesses and service delivery channels. The financial landscape in developed countries has already started to change with the entrance of Fintech companies, challenger and neo banks, which in turn meant actual threat to incumbent players. As a response, the traditional integrated corporate banking model started shifting towards diverse digital banking ecosystem of bank and non-bank players. This research paper identifies and analyses the key drivers that are changing the banking business model in developed countries and correspondingly describes three possible scenarios for Macedonian banking system which will imply changes in the current banking business models. Within the scenario framework, special attention is given to the opportunities and threats that banks may face in their main group of activities (services and products). Additionally, through conduction of SWOT analysis this research paper shows the advantages and weaknesses that Macedonian banks would have in the new digital banking ecosystem. The customer preferences, advanced technology, the entrance of new competitors and changes in regulation will initiate drastic changes in the banking sector where Macedonian banks must rethink their business model in order to remain competitive. Therefore, the main purpose of this research paper is to propose reinvention of bank business models in the new digital banking ecosystem.
B. DANEVSKA, A.,
(2021). REINVENTION OF NEW BANKING BUSINESS MODELS IN REPUBLIC OF NORTH MACEDONIA. Trends in Economics, Finance, and Management Journal, 3(2), 42-51. Arrival Date Posted By:https://tefmj.ibupress.com/articles/reinvention-of-new-banking-business-models-in-republic-of-north-macedonia
