USV Annals of Economics and Public Administration (Jun 2023)
CONTEMPORARY DIRECTIONS ON HOW CONSUMERS INTERACT WITH FINANCIAL-BANKING SERVICES
Abstract
The emergence of Open Banking and the COVID-19 pandemic have caused disruptions in the global economy and the way consumers use financial-banking services. As consumers avoided visiting branches, banks and other financial service providers, who were hesitant to change their traditional models, had to embrace technology and other changes to stay competitive and meet customer demands. For numerous financial organizations, the current situation has led to a hastening of their digitization efforts both internally and externally. However, for some, it has exposed shortcomings in fulfilling the needs of their customers. As online banking has transitioned from a “nice-to-have” feature to an essential way of life, many new banks have taken advantage of the technological gap. // With online banking evolving from a "convenient option" to a crucial necessity, numerous emerging banks have capitalized on the gap in technology. Therefore, PSD2 has presented a chance for traditional banks to expand their market share and offer their products to customers who were previously unreachable. In recent times, Open Banking has emerged as an emblem of the financial sector's digital and transformative progress. The fundamental principles of the Internet age aim to empower consumers with control over their financial services and lower the obstacles to accessing them. Digital and neo banks represent a new breed of banks that operate solely online with the primary goal of making financial transactions easier for consumers. They offer round-the-clock availability and enable quick and effortless execution of all kinds of operations, aligning perfectly with the current trend towards digitalization. The digital transformation of banks necessitates a fundamental shift in their organizational culture, beginning with the understanding that banks must continuously evolve to meet customer expectations for comprehensive, seamless, and agile services. This article emphasizes the impact of current economic conditions on the actions of financial-banking service consumers and the development of financial intermediaries
