The essence of retail and development of retail banking innovative mechanisms in Ukraine

Anzhela Kuznyetsova1, Natalia Kozmuk1, Iryna Zherebylo1, Olena Sydorova1, Marta Zvarych1
1. Banking University (Ukraine)
316 - 331
Cite as:
Kuznyetsova, A., Kozmuk, N., Zherebylo, I., Sydorova, O., & Zvarych, M. (2018). The Essence of Retail and Development of Retail Banking Innovative Mechanisms in Ukraine. Marketing and Management of Innovations, 4, 316-331.


In the context of the dynamic development of retail banking business and competition growth, domestic banks are beginning to pay special attention to their customers, realizing that their success in the future will depend on a long-term close partnership with customers and on the level of satisfaction with the services provided. An important feature of modern banking taking into account form and technologies of cooperation is increasingly approaching of banking services for individuals to retail. Banks create a customer-oriented business model by offering specific services to specific groups of clients, trying to implement the principle of individual service for mass clientele. The ability of banks to respond to changes and the emergence of new consumer needs is increasing. Thus, the purpose of the article is to summarize and reflect the main theoretical aspects and development process of banking retail in Ukraine, to search for ways to optimize and increase the volume of banking products and services sales. It is determined that in order to achieve banking retail development banks need to keep deposits on their accounts by offering depositors more favourable conditions than other banks; to increase the resource base by attracting population deposits. A number of specific features of the banking retail sector are presented, such as: local assortment policy, which means the need of banking products portfolio adjustment, depending on the location of a banking institution; banking services complexity, which requires from clients a certain educational level; the need to support each client individual liquidity which makes possible to carry on further credit activities, ensure funds circulation; banking services individualization means taking into account the needs and interests of banking institution clients when forming a banking services package; banking services diversification what provides both an individual approach to the client and an expanding range of opportunities in choosing one or another action and perspective. During the scientific research the methods of logical generalization and scientific abstraction, the statistical method, the tabular method (for displaying of traditional banking services and banking retail features), the schematic method (for the main trends of online retailing and the benefits of innovative banking business technologies reflection) were used. The results of the study give grounds to assert that introduction of innovative measures in banking institutions activity which provide the latest approaches to banking retail policy development plays an important role in increasing the volume of banking products and services sales.

retail, retail banking, commercial banks, innovations, deposit portfolio, innovative retail banking mechanism, banking service.

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