Tliis article describes some theoretical aspects related to the competitiveness of Banks, the main factors affecting their competitiveness are considered. Special attention is paid to the Cliaracteristics of the external and internal enviromnent in relation to the Bank. The authors of the article formed their own classification of factors that have the greatest impact on the competitiveness of the Bank and clarified the definition of "factors of competitiveness of the Bank", "external factors of competitiveness of the Bank", "internal factors of competitiveness of the Bank." On the basis of the conducted research, the idea is substantiated that all factors both external and internal are interrelated and interdependent: it is never possible to gain a strong position in the market, to ensure stable and profitable functioning of the organization, to create a competitive Servicewithout Iiigh- quality; it is impossible to Iiave a good financial position and ensure a normal Bank profit and the strong position of the Bank in the Hiarketwithout competitive banking services.
Today, competitiveness is an integral part of effective activity and improvement of social welfare. Forthe banking sector, competitiveness is often similar to stability.
The level of competitiveness of the Bank determines its ability to function effectively in the modem market of banking services and in the current economic, political and social conditions. Competitiveness of the Bank is an opportunity to carry out effective economic activities and achieve practical profitable implementation of services in a competitive market. In this regard, it is necessary to determine the factors affecting the competitiveness of the Bank in the external environment and within the organization. In general, competition can be defined as the rivalry of market actors interested in achieving the same goal.
The purpose of each Bank is to make the customer choose and purchase its specific service. Market representatives are either sellers or buyers. It is especially important to respond quickly and adequately to changes in customer behavior, their tastes and benefits. In fact, the Bank's competitiveness is determined by its ability to achieve its goals [1, 58].
The external environment is the source that feeds the organization with the resources necessary to maintain its internal capacity at the appropriate level. The Bank is in a state of constant exchange with the external environment, thus providing a possibility of survival. But the resources of the external environment are not unlimited, there is always the possibility that the organization will not be able to get the necessary resources from the external environment. This can weaken its potential and lead to many negative consequences. The main task of the office is to ensure such interaction of the organization with the environment, which would allow it to maintain its potential at the level necessary to achieve its goals, and thus give it the opportunity to survive in the long term [2, 27]. As a result of the research we offer our classification of factors affecting the competitiveness of the Bank:
- Economic factors combine the national conjuncture, the state and dynamics of payment demand, the mechanism of state regulation of the economy, the characteristics of the state budget and the balance of payments, the level of development of market infrastructure, the nature of monetary policy, the formed system of taxation, economic reform.
- The set Ofpolitical factors includes political stability in the country; the frequency and duration of political conflicts; the effectiveness of decisions of public authorities and management, affecting the nature of decisions taken by business entities in General and banks, in particular, (the principles of monetary policy; the stated principles of budget formation and its proportions; the principles of taxation; implemented in practice the principles of development of the national economy and its individual sectors, the attitude to entrepreneurship, to banking).
- State—legal factors include the current legislation regulating the activities of business entities, including banks, its compliance with environmental conditions. At the same time, the legislation provides for the impact on the development of the banking system by special rules for the regulation of certain banking operations or transactions, allowing them or prohibiting them.
- The socio-psychological factors include: the confidence of the majority of the population in the correctness of economic reforms, in the stability of tax, customs, currency legislation, in the stable development of the economy as a whole and its individual sectors.
- Technologicalfactors (innovations and discoveries; priority areas of science and technology; man-made disasters).
- Environmental factors (global changes in nature, the state of the ecosystem, the effectiveness of environmental measures).
- Resource factors (availability of raw materials) [4, 87].
The internal environment of the organization has a permanent and direct impact on the functioning of the organization. The study of the internal environment is aimed at identifying the strengths and weaknesses of the organization. The internal environment has several sections, the state of which together determines the potential and the opportunities available to the organization [2, 36]. From the point of view of competitiveness, these factors characterize the possibility and effectiveness of adaptation of the Bank to the external environment and are the object of managerial influence in the system of ensuring the competitiveness of the Bank. If possible, the internal factors of competitiveness are manageable.
The key quantitative and qualitative factors of the Bank's internal environment are:
- financial resources (assets and liabilities of the Bank, their dynamics and structure, financial results, performance indicators of the Bank);
- personnel (professionalism, productivity, moral and material motivation of employees);
- business processes of the Bank (formation of the range of banking products, setting tariffs, sale of banking products, marketing, image creation, advertising, management and other processes);
- innovations (introduction of innovative products and services, advanced training);
- information and communication technologies;
- customer base (structure, loyalty, commitment);
- relations with the authorities and the regulator .
Thus, it can be concluded that the Bank, like any other organization, have many factors that affect its competitiveness. Therefore, it is advisable to identify the most important factors of competitiveness, the impact of which has the greatest impact, both positive and negative. This will make it possible to manage competitiveness more effectively, as well as to develop measures to improve it, without wasting the Bank's available resources on minor improvements. Minimization of costs, on the one hand, and the marketing campaign aimed at increasing the value of the service to the consumer, on the other, contribute to the growth of the so-called reserve competitiveness of the banking product.
The main thing for a credit institution - to meet the needs of customers. And as practice shows, the main factors determining the value of the Bank for the client are: the Bank's tariffs, the time spent by the client, the effect of using the Bank's services.
- F. Shpig. Competitiveness of the Bank: Factor and Criteria / F. Shpig // Problems and Prospects for the Future of the Bank. T.16: Collection of scientific works: Scientific publication.- Sumy: UBS of the NBU, 2006 - 334 p. - P. 57- 62.
- N. Abaeva. Competitiveness of the organization / N. Abaeva, T. Starostina; by ed. T. Starostina. - Ulyanovsk: UlSTU, 2010. - 91 p.
- P. Kolesov. The main factors affecting the competitiveness of banks // Modem scientific research and innovation. 2012. № 11 [Electronic resource], URL: http://web.snauka.rn/issues/2012/ll/18351.
- O. Miroshnichenko. Investigation of factors of the bank's competitiveness / O. Miroshnichenko, O. Krykly // Economic analysis: Sb. sciences works. - 2012. - Issue 10. - Part 3. - P. 83- 89.
- N. Chetyrkina. Management the competitiveness of organizations in the service sector: Tutorial. St. Petersburg: Publisliing House of St. Petersburg State University Ofeconomics and finance, 2009. - 128 p.