How can we call the current banking model after the financial crisis?

Dear Colleagues and Friends from RG,

The above discussion inspired me to formulate the following question:

Are the development of ICT, Internet and Industry 4.0 information technologies the main determinants of the development of electronic online banking?

On the basis of the above considerations and conclusions from the discussion on interesting issues discussed, I formulated the following thesis that the development of ICT, Internet and Industry 4.0 information technologies are the main determinants of the development of electronic online banking. The key issue of this development is the security of classified data transfer and the development of technological facilities for customers making electronic payments. Below I have described the key determinants confirming the formulated research thesis. To the above discussion I would like to add the following conclusion formulated as a summary of my earlier considerations on this topic: technological determinants of the development of electronic internet banking.

In my opinion, the development of electronic online banking into which specific ICT and internet information technology solutions and Industry 4.0 are implemented can be written according to the following formulas:

a) Banking + Security + Internet ICT and advanced information processing Industry 4.0 = mobile smart e-banking 4.0?

b) Banking + Internet ICT + Internet of Things + Artificial Intelligence + Big Data + Business Intelligence Security = mobile smart e-banking 4.0?

c) Internet mobile banking + technologies Industry 4.0 = fintech Internet banking?

Will the combination of currently developed Industry 4.0 technologies, i.e. mainly advanced information technologies: Internet of Things Big Data Business Intelligence and Internet ICT and ICT security systems as well as data transfer on the Internet and their application in the field of electronic banking will lead to the situation in the next years in which customer service of banks in over 90 percent. will it be implemented remotely via the Internet as part of online mobile banking?

Online mobile banking is currently developing intensively in many countries. Therefore, will traditional banking cease to function and will be fully replaced only by electronic online banking, including mobile banking?

Will cash be withdrawn completely and will only be used with electronic money? Accordingly, will only electronic internet banking develop in the future?

The parallel development of e-commerce is an important determinant of the development of electronic banking. E-commerce is currently one of the fastest growing branches of commerce. The development of trade in some assortments is significantly increasing thanks to e-commerce.

Some retail outlets and store chains, including large-format stores, significantly improve their profitability and financial results thanks to the development of e-commerce.

In the following years, a continuation of the upward trend in the share of e-commerce against the background of the overall trade sector is forecast in many countries.

One of the rapidly growing fields of implementation of ICT and Industry 4.0 information technologies into economic processes is online electronic banking and e-commerce. The key determinants of the globally developing e-commerce relate primarily to the implementation of ICT information technologies and advanced data processing technologies, i.e. industry 4.0 typical for the current technological revolution to computerized, automated transaction systems supporting online trading. In addition, the use of blockchain technology for transaction security systems and data transfer on the Internet. The use of ICT information technologies and advanced data processing technologies i.e. typical for the current technological revolution Industry 4.0 to e-commerce online transaction systems already applies to almost all the functioning of online stores, from computerized sales support systems, logistics, accounting, reporting, risk management to Internet marketing activities and improving security systems for online transactions. Another important determinant of e-commerce development is the development of online mobile banking available on mobile devices and new solutions related to the Internet of Things technology. Online banking is starting to dominate, whose development is determined by technological progress in the field of ICT and Industry 4.0 information technologies. Computerization is also increasingly affecting public sector institutions servicing tax systems and settlements of business entities. In addition, Business Intelligence analytical platforms supporting the management processes of companies operating also in the e-commerce sector have been developed for several years. The analyst of large information sets in Big Data databases is also developing. Big Data Analytics and Data Science analytical systems are also used by businesses operating also in the field of e-commerce. In recent years, new internet marketing instruments have also been developed, mainly used on social media portals, and are also used by companies operating in the e-commerce sector. Internet technology and fintech companies are also emerging that offer information services on the Internet to support marketing management, including the planning of advertising campaigns for products sold via the Internet. To this end, sentiment analyzes are used to survey Internet users' opinions regarding dominant awareness, recognition, brand image, mission and the offer of specific companies. Sentiment analysis is carried out on large data sets downloaded from various websites, including millions of pages of social media portals collected in Big Data systems. The analytical data collected in this way are very helpful in the process of planning advertising campaigns carried out in new media, including social media portals. These campaigns advertise products and services sold via the Internet, available in online stores. In view of the above, the development of e-commerce is determined mainly by technological progress in the field of ICT information technologies and advanced data processing technologies Industry 4.0 and new technologies used in securing financial transactions carried out via the Internet, including e-commerce related transactions, e.g. technology blockchain. To sum up, ICT and Industry 4.0 are an important factor for economic development, primarily in emerging knowledge-based economies. In many countries there are investment programs financed also from public funds to activate the development of applications in the ICT and Industry 4.0 industries. In this way, individual developing countries whose economies are largely based on such production factors as technology, information, innovation, entrepreneurship and knowledge build their comparative advantage. Building comparative advantage in knowledge-based economies includes investments in new technologies, including Internet, ICT and Industry 4.0. Investments implemented in modern internet technologies, ICT and Industry 4.0 increase the efficiency of production processes, logistics, management, marketing, risk control etc. in enterprises operating in various branches of the economy. I have described the above issues of various aspects of the application of information systems and ICT, including Big Data, Business Intelligence in companies operating on the Internet in my scientific publications available on the Research Gate portal. I invite you to cooperation.

Currently, in many countries there is an intensive development of computerized technologies typical of the current technological revolution referred to as industry 4.0. i.e. artificial intelligence, data processing in the cloud, development of applications in science and business analytics Business Intelligence, data analysis in Big Data database systems, implementation of BlockChain technology for billing systems and electronic transaction security, use of the Internet of Things technology, machine learning etc. in various fields of scientific and business activity. In connection with the above, if the technologies typical for Industry 4.0 are implemented in online mobile banking, will electronic online banking be able to develop towards a business operating in the fintech formula?

The directions of development of applications of Industry 4.0 technology, including artificial intelligence in online banking, including in the field of development of electronic internet and mobile banking are huge. Has anyone of you conducted comparative research in the field of security analysis of the use of online mobile banking on smartphones equipped with different operating systems and various security systems for data transfer via the Internet? In addition, maybe someone of you investigates the issue of managing the risk of processing and transfer of classified data in electronic banking systems, including online, mobile banking with access to bank accounts via smartphone? If so, I invite you to discuss and cooperate because I am researching this issue. Currently, I am also conducting research in the field of correlation of integrated credit, operational and technological risk management systems as well as security risk of data transfer in online mobile banking. Some online technology companies, including, for example, antivirus software companies are conducting cybercrime research on online mobile banking.

In principle, the financial sector belongs to those sectors in the national economy in which the possibilities of using ICT, Internet and Industry 4.0 technologies including artificial intelligence, learning machines, Internet of Things, Business Intelligence, Big Data, Data Analytics etc. are the largest. Some of the ICT, Internet and Industry 4.0 information technologies have been implemented for many years in sales systems, electronic internet and mobile banking systems, for banking analytics, for financial risk management etc. in financial institutions. However, the use of the huge opportunities offered by artificial intelligence in the field of finance is just beginning, but the potential for this use is huge.

On the other hand, large commercial banks generate high financial surpluses enabling the implementation of modern integrated IT systems, online banking, Business Intelligence data analysis systems, data processing platforms in Big Data database systems, etc. There have already been situations of unethical use of modern ICT solutions, analysis of comments contained on social media portals, during which the bank verified the customer data entered in the loan application also by scanning the information that the potential borrower enters in the social media comments. This informal verification took place without the knowledge of the potential borrower and then may be the basis for suing the bank. However, the bank's client is not always aware that he can be monitored in such a way by public trust institutions as the bank should be. Of course, these types of cases, which we know from the media is supposedly a margin of the entire banking, which can be one of the categories of a new type of unethical practices typical of the so-called Shadow Banking. However, only part of this type of information gets into the media. Perhaps it is only so-called the "tip of the iceberg" of this problem. The situation is similar in the situation of cybercriminals' attack on banking ICT systems or electronic banking platforms. If this type of event can be kept secret, customers do not find out. This is because the media only receives information about some of these types of events.

However, the development of artificial intelligence applications in the financial sector makes it possible to continue to improve the techniques of selling financial products through electronic online and mobile banking. The development of artificial intelligence generates the building of additional tools on websites that facilitate communication with a potential customer. Electronic advisors appear on the websites of corporations providing financial, insurance, consulting services, etc. are these types of customer support tools designed to reduce personnel costs or rather to activate sales of a company's product or service offer?

In line with the above, in my opinion, the development of ICT, Internet and Industry 4.0 information technologies is one of the main determinants of the development of electronic online banking.

I conduct research in this area. The conclusions of the research I published in scientific publications that are available on the Research Gate portal.

I invite you to discussion and scientific cooperation.

thank you very much

Best wishes

Dariusz Prokopowicz

Abbas Nawar Al- Musawi Popular answer

I agree with Milan B. Vemić

Dear László Vértesy,

The development of current banking is determined by the implementation of Industry 4.0 information technologies for automated, computerized transaction systems, electronic banking systems and, increasingly, computerized analytical tools in risk management processes. The global financial crisis of 2008 has been triggered by many factors, including mistakes made in shaping monetary policy, excessive deregulation of credit markets, lack of full credit risk control in the mortgage process, unethical practices of brokers selling credit derivatives and others, etc. the source of this crisis also includes the use of modern-day analytical tools in credit risk management processes, including complex formulas for estimating the risk value, but without the necessary control procedures. The currently used information technologies Industry 4.0 in banking should be fully controlled so that the effects of their application in banking do not generate further crises. In addition, nowadays banking is becoming more and more similar in its functioning as part of mobile online banking to online technology companies called fin-techs. I described many of the above aspects and sources of the global financial crisis in 2008 in my scientific publications.

Sudindra vr

Dear Prof. Milan,

In era of Industry 4.0 the how quickly banks adopt the technology and facilitate customers, asset quality (% of NPA) , types of borrowers, identifying the financial statement mismatches and other variables can be consider to analyse the data through logistic multiple regression. Its my opinion.

Adamu Garba Zango

The quantum of toxic assets through non-performing loans in the books of banks in developing capital markets is alarming. An effective identification of the factors leading to these systemic crisis for instance through the application of a potential risk disclosure and monitoring model (i.e. IFRS 7) could go along way in eliminating or at least drastically reducing the incidence of the crisis.

Good Luck.

András Póra