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Abstract

If the previous decade in the banking business was marked by excessive credit expansion, today we are talking about a decade of its digital transformation. Under the influence of digital media and tremendous changes in technology and consumer needs, banks are exposed to digital disruption of their business models both from the inside and outside, which all leads to innovations in products, services, sales and distribution channels, business models and ultimately organizational culture. Sector analyses are showing that future profits will be redirected towards those financial organizations which successfully deploy digital technologies for process automation and as analytical tools, create new services and values for their clients who want their bank to be accessible at all places and all times, and which transform their organizational culture to an agile and innovation-oriented one. Successful banking strategies will be based on understanding how digital business transformation can create new value - on market changes brought by fin-tech innovators, on comprehensive understanding of customer habits and expectations, and setting up investments into digital business as the key priority.
originalni naučni rad

Bankarstvo, 2016, vol. 45, br. 2

      















Rezime

          
  


 

    




Ključne reči
JEL




 Bankarstvo, 2016, Vol. 45, Issue. 2
original scientic paper













Summary




 







Keywords
JEL







Uvod
    
Clayton
Christensen     
     
     
     
     

      
    
      

     
     


      



     

   
      
    
    

      
  

     



      

     
    
      
      


  


   

    



    


     

     
     
   
     
     
      

    


    
     
    


 
    
    
     
    
    
    
    
    
    
      

Fidor Smart Account
 
     
Fidor Smart Community   


 

      
 


      
   


   



Krstić N., Tešić D.


Bankarstvo, 2016, vol. 45, br. 2 
Introduction
    
      
,     
    
     
     
     
     
 






  
     



    
    
     



 


 
 

    
 

 


     

     
      



     




  


 


       

   
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

    
     
 
    
    
    
      
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  

  
     



    

Fidor Smart Account
      

Fidor Smart Community





ibid
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     


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


  

    

 
Krstić N., Tešić D.

  Bankarstvo, 2016, Vol. 45, Issue. 2
   




    
  


 


     

   
 

     
    

      
       

asset-
light    
   

     
    


Pozitivne promene koje nastaju
digitalnom transformacijom
   
  

     

 

       
      
   
    
    
   

   
   



  multichannel integration
  
 customer experience 
    



   
      

     

   
     
    
    
 cost
to serve      

   branch experience

 
     
   
 
   
   
Societe
Generale
    
 
     
   
    
 Easy
 





    

   

    
    
automation of servicing and fulllment
processes
Krstić N., Tešić D.


Bankarstvo, 2016, vol. 45, br. 2 
     
 



 



      
  
       

      
     
      
    


  
  



Positive Changes Arising from
Digital Transformation
   
    
   

 
 
 



     

 
    

     
   
 


    




 
   

 

     

 

ibid





  
    
 Societe Generale   
     



 
   Easy  
     

      




      
    


    





        







    


Krstić N., Tešić D.

  Bankarstvo, 2016, Vol. 45, Issue. 2
    

   
   


      
    cash point 



   

  
     
cost-to-serve
   
   



    
   
   
 
Safaricom


     


     
 
telco-bank partnership
    
CaixaBank, Santander, Telefónica
 

    



 customer
journey   
 


    
claud
   

    
      
   

    
      
     
     
    






Conversation suite


    
    



    


     
 
   
    
     




Krstić N., Tešić D.


Bankarstvo, 2016, vol. 45, br. 2 



  
   

Safaricom   



    
 

   


     



     
       
   
   

 
   
   
  
 
 

   
  
    
   
  

   
  
      

     
    
 
      


    
    
Conversation suite”



 




     


    

  


       
      


     



Krstić N., Tešić D.

  Bankarstvo, 2016, Vol. 45, Issue. 2

  
 
    
 

Novi konkurenti narušavaju
dosadašnji model bankarskog
poslovanja
    



    
 
  


    


    
 
   
  
  Kickstarter
   
Google Wallet  
  
SquareFundbox


Apple Pay
   
     

 

Paypal

   
 

  
   


 
 
 crowdfunding
 
 
 
  
 
  
  Amazon Lending 
    
 
       
     

      
PayPal Working Capital    
     
  peer-to-peer
lending  





 



  



  






  

   
Krstić N., Tešić D.


Bankarstvo, 2016, vol. 45, br. 2 
New Competitors Disrupt The
Current Banking Business Model

    





    

M-Pesa
    Zopa   
     
    Kickstarter
  Google Wallet  
  Square Fundbox 

Apple Pay      

      


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     
      
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     
 
PayPal  
 
PayPal
Working Capital
  
 
  
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 
  
 
 
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     
     
      
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      
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      
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    
  


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
     

ibid
Digital Banking Transformation -
Outside And Inside
  
  
    
     
      
     
    


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 


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  

   





  

   
Krstić N., Tešić D.

  Bankarstvo, 2016, Vol. 45, Issue. 2




     
    
      
    
      
      



      



   




Sberbank


Digitalna transformacija banaka -
spolja i iznutra
    
    

 




 




   


     
   

 
   
 
life-time value

 


     

  


      





    
     

 
    



   
omnichannel experience 

   
    
customer journey


    


    
    
  



    



    

 





   

   


Krstić N., Tešić D.


Bankarstvo, 2016, vol. 45, br. 2 

     




    
     


     
     


life-time value per new customer
(LTV)

     



  
  
 

   


    
    
   
    

   


    

    




      
    
 



    






   


    
    
   
    
    





     

      




Digital Transformation Demands A
New Type Of Bank Executives


       
    
     




  
  

     
     
      






Krstić N., Tešić D.

  Bankarstvo, 2016, Vol. 45, Issue. 2
Digitalna transformacija zahteva
novi tip bankarskog rukovodioca
   
    
   
    
    
    

  
   
  

     
 
     







   
  
    


   




   






   
   


 
   

 

  
   


 
   


venture
capitalists


      
    


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 
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   
     

     




    

     
      
    
   


Krstić N., Tešić D.


Bankarstvo, 2016, vol. 45, br. 2 

     
   
     
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      
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    
   
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       

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   
      
       
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       
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 
    




  
     
 


    
      

Krstić N., Tešić D.

  Bankarstvo, 2016, Vol. 45, Issue. 2
    
     
     



Google Wallet
   
    
 





     

   
     
 
     

 
      
     
     


      


   

   
  
    
    
   

Digital Banking Hub



      
 
    



    


      

   
     


    
 

     
  


    

 
    
    


    
    
   
    
    


 
    
     

    
     
 
     




      

    


Strategije za odbranu od digitalnog
narušavanja u bankarskom
poslovanju
    
 
     
     
    
Krstić N., Tešić D.


Bankarstvo, 2016, vol. 45, br. 2 

    

       
  





     
 



 


 

   
     
    



      


      
    



      
     
     
   


     

 
     

Digital disruption defense strategies
in the banking sector
      
     

      

        








    




 
  












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

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





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





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




Krstić N., Tešić D.

  Bankarstvo, 2016, Vol. 45, Issue. 2
   
     

    


    


     

   
   
   
     
     
   contextual
engagement     



     
 
    
    
     


     
    
   

     
    

     
   
    
   

     
   
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
Zaključak
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 
     
    
      



   
 

  

     

    
    
      
     

 

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
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Krstić N., Tešić D.


Bankarstvo, 2016, vol. 45, br. 2 
      





      
     
 

     
 

      

ibid

     
 







Conclusion
      
     
        
     


   



    
      
     
     


    


     
 

 

Krstić N., Tešić D.

  Bankarstvo, 2016, Vol. 45, Issue. 2
 



      
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    
      
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    
    
     
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       
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      
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 
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   
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  
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     
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    
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      
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 
       
   
    







Krstić N., Tešić D.


Bankarstvo, 2016, vol. 45, br. 2 

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   
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
 

ibid






      
 


    

 

       
      
 
  


   
    
    



    


 

      
 


Literatura / References

     

 





    

  





 
 


  


      
    
    




    
   
 





  


    
 



 
     






Nastavak na strani 32
Krstić N., Tešić D.

  Bankarstvo, 2016, Vol. 45, Issue. 2

     
      
 



 
     




    
 


    
    
    


 


  
    




      
   


   
   
    
      








 


  










      
  







 


 

Disruptive Innovation in
Banking: A Business Case in Low Cost Finance


    
   





   


   




   
 



    
   
 





  



 
 



Nastavak sa strane 31
Krstić N., Tešić D.


Bankarstvo, 2016, vol. 45, br. 2 

     


      
     
  



     
      
   







 
 






   

 


   
 
    
     
 








    
 


     






    
 


 


     
  
      












  


    
    
    



    


 


  

Krstić N., Tešić D.

  Bankarstvo, 2016, Vol. 45, Issue. 2
... This supports Philippon's (2016) argument that banks' innovations were not enough to improve the banking system's efficiency. Post-crisis regulations were preventing technological innovations to avoid further system disruption (Krstić & Tešić, 2016). Not long after that, regulators realized the limitations of overregulating the system and softened those regulations to allow for a more flexible market (Krstić & Tešić, 2016). ...
... Post-crisis regulations were preventing technological innovations to avoid further system disruption (Krstić & Tešić, 2016). Not long after that, regulators realized the limitations of overregulating the system and softened those regulations to allow for a more flexible market (Krstić & Tešić, 2016). ...
Chapter
With the constant development in FinTech globally, Saudi Arabia is a late arrival in the FinTech world. However, the FinTech growth pace in Saudi is fast and not slowing down. This fast pace is confusing stakeholders, including bankers. This chapter unpacks how FinTech is developing in Saudi Arabia, considers the challenges and opportunities that FinTech may be facing in Saudi, and discusses how these changes may affect current bankers and how future bankers can be ready to enter the new market. The study draws on interviews with professionals in the banking and FinTech industries and makes two contributions: It suggests that FinTech is affecting retail and long-tail clients of banks (i.e., the effect on core banking operations, such as corporate banking and treasury). Findings also highlight that professionals should upgrade their knowledge around matters necessary to retain their jobs in the sector. The study has implications for future bankers (i.e., university students), suggesting that university curricula should be updated to include relevant knowledge and professional placements.
... This supports Philippon's (2016) argument that banks' innovations were not enough to improve the banking system's efficiency. Post-crisis regulations were preventing technological innovations to avoid further system disruption (Krstić & Tešić, 2016). Not long after that, regulators realized the limitations of overregulating the system and softened those regulations to allow for a more flexible market (Krstić & Tešić, 2016). ...
... Post-crisis regulations were preventing technological innovations to avoid further system disruption (Krstić & Tešić, 2016). Not long after that, regulators realized the limitations of overregulating the system and softened those regulations to allow for a more flexible market (Krstić & Tešić, 2016). ...
Chapter
With the constant development in FinTech globally, Saudi Arabia is a late arrival in the FinTech world. However, the FinTech growth pace in Saudi is fast and not slowing down. This fast pace is confusing stakeholders, including bankers. This chapter unpacks how FinTech is developing in Saudi Arabia, considers the challenges and opportunities that FinTech may be facing in Saudi, and discusses how these changes may affect current bankers and how future bankers can be ready to enter the new market. The study draws on interviews with professionals in the banking and FinTech industries and makes two contributions: It suggests that FinTech is affecting retail and long-tail clients of banks (i.e., the effect on core banking operations, such as corporate banking and treasury). Findings also highlight that professionals should upgrade their knowledge around matters necessary to retain their jobs in the sector. The study has implications for future bankers (i.e., university students), suggesting that university curricula should be updated to include relevant knowledge and professional placements.
Preprint
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In recent years, we have seen an increase in the implementation of innovative financial projects. Fintech projects are gaining more and more importance in the financial industry, determining the direction of its development. However, the fintech area has not been covered thoroughly in the literature and much remains unclear about this influential phenomenon. This graduation thesis aims to make a contribution to the study of the fintech phenomenon, by answering the question of what the fintech product development process looks like. Therefore, the main goal of this work was set, which is to determine the general characteristics of the fintech product management process and its phases and activities, necessary in that process. The content of this thesis and the data presented in it were obtained through a systematic search and a detailed review of the academic literature. A total of 296 papers were reviewed, from which, by means of revision, applying the comparative method and synthesis, material from 163 papers was selected, which was included in this specific paper. The research resulted in the definition of the general methodology of product management, which is applied in the fintech industry. This work established a product management process consisting of three phases: conceptualization, implementation and commercialization. In this way, the different views of other authors regarding the phases in product management were included. Also, this paper represents a contribution in terms of distinguishing the taxonomy of fintech projects. Important limitations in research are primarily caused by the insufficient coverage in literature on fintech and the lack of measurable data and information from practice. Final conclusion of this research is that the management of fintech products essentially represents the implementation of the process of managing the development of software products in the financial industry, and that there are no significant differences in its application. All other researchers, as well as practitioners, who embark on research into fintech and product management fields can benefit from the views supported in this thesis.
Thesis
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Poslednjih godina videli smo porast implementacije projekata inovativnih finansijskih proizvoda. Fintek projekti dobijaju sve veći značaj u finansijskoj industriji i određuju pravac njenog razvoja. Međutim, fintek oblast nije ni izbliza dovoljno obrađena u literaturi i mnogo šta u vezi sa ovim uticajnim fenomenom ostaje nedoumica. Ovaj rad teži da da doprinos izučavanju fintek fenomena, odgovorom na pitanje kako izgleda proces razvoja fintek proizvoda. Prema tome je i postavljen osnovni cilj ovog rada, a to je utvrditi opšte karakteristike procesa upravljanja fintek proizvodom i njegove faze i aktivnosti, koje su neophodne u tom procesu. Do sadržaja ovog rada i podataka iznetih u njemu, došlo se sistematskim pretraživanjem i detaljnim pregledom akademske literature. Pri čemu je ukupno pregledano 296 radova, od čega je pomoću revizije, primenom komparativnog metoda i sinteze, selektovana građa iz 163 rada, koja je uvrštena u ovaj konkretni rad. Rezultat istraživanja je definisanje opšte metodologije upravljanja proizvodom, koja se primenjuje u fintek industriji. Ovim radom je ustanovljen proces upravljanja proizvodom koji se sastoji iz tri faze: konceptualizacije, implementacije i komercijalizacije. Na taj način su objedinjeni različiti pogledi drugih autora u pogledu važnosti i redosleda faza u upravljanju proizvodom. Takođe, ovaj rad predstavlja i doprinos u pogledu razlikovanja taksonomije fintek projekata. Važna ograničenja u istraživanju su pre svega uzrokovana malim brojem kvalitetne literature o fintek oblasti i nedostatkom merljivih podataka i informacije iz prakse. Naposletku, da se zaključiti da menadžment fintek proizvoda, suštinski predstavlja implementaciju procesa upravljanja razvojem softverskih proizvoda u finansijskoj industriji, i da ne postoje značajnije razlike u primeni. Korist od ovog rada mogu imati svi drugi istraživači, ali i praktikanti, koji se upuste u istraživanje fintek oblasti i oblasti upravljanja proizvodom.
Article
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Digital transformation is the permanent improvement of business processes within a bank by available digital tools and technologies in order to survive in the market. It is driven primarily by the clients' needs, new competitors, regulations, and strategy based on the existing tradition. The aim of the paper is to determine whether there is a link between the money invested in digitalization and the achieved result of the bank through the relevant financial indicators. The results of the research show that the banking offer of alternative distribution channels' products in the Republic of Serbia (RS) follows world trends and it can be considered developed. Furthermore, the level of investment in digitalization has a direct impact on the achieved result of the banking sector. Moreover, the banking sector generates more revenue than traditional products offered, and investments in digitalization, innovation and IT technology are inevitable if they want to survive on the market, which is, due to global trends, the need of clients and requirement of the regulator. It is certainly an imperative for all banks in RS to continue investing in education of employees and clients, improvement of business processes, and new tools in order to survive on the market and be competitive.
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