About the Value Chain in Banking

Abstract

The relevance of the research is due to the fact that technological innovations allow not only to accelerate current production processes and increase their efficiency, but also contribute to the emergence of new products and business models, significantly complicating competition and forcing the company’s management to think about how to ensure its sustainable development in conditions of increasing uncertainty, which is also influenced by climatic and geopolitical factors. This problem affects credit institutions, for which uncertainty is expressed in increasing risks in credit and

settlement operations that threaten their stability, capital and the process of value generation itself. Therefore, the subject of the article is to establish compliance with the theory of value creation in banks with their current practice.

The purpose of the work is to determine the influence of these circumstances on the process of value creation in banks, to identify differences from value creation in manufacturing companies.

The article demonstrates that risk management in credit institutions, rather than the generation and sale of banking products, is the core of banking activity in modern conditions, exerting a decisive influence on the efficiency and sustainability of credit institutions. The article proposes a new model of the value chain in banks, analyzes the interrelationships of individual links of the value chain, types of value generation and types of competition. The conclusion is made about the expediency of improving approaches to servicing corporate clients by banks through the transition from the sale of banking products to a comprehensive customer service, taking into account the fact that the success achieved by customers in business is the main condition for the return of borrowed funds and, as a result, expanding the bank’s opportunities to generate income and profit.