The impact of digitalization on the formation and implementation of bank's deposit policy

Abstract

The article considers the efficiency of banks in Ukraine, which in turn depends on sufficient volumes of resources. Given the rapid pace of innovation and unstable dynamics of investment, it is not enough to artificially reduce the cost of deposits and increase the cost of loans to sustain the successful operation of banking institutions. It is necessary to create an effective management system that will be able to develop a deposit policy and respond adequately to all events in society. Issues of deposit policy in banking, which is influenced by the complexity of financial relations, in particular in the context of globalization, are becoming increasingly relevant. Therefore, the article examines the peculiarities of the formation and implementation of deposit policy in terms of the digitalization of business processes. The authors analyzed the allocation and dynamics of deposits by volumes, currency, sectors of the economy and terms of repayment. The results of the study allow claiming that banks’ deposit policy needs constant improvement. To increase its efficiency, there are several ways, such as creating favourable conditions to meet customer needs in deposit services; ensuring the protection of depositors' interests, which, in turn, will increase the reliability of banks and the efficiency in the process of converting savings into investments; active digitalization of banks' relations with clients in solving all financial issues, including in the deposit sphere, which will simplify customer service processes and increase the banks’ resources by attracting new categories of customers due to innovative deposit products with favourable terms.