Page 42 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.76, # 1, 2019, pp. 34-47

determined; the influence of communications on the development of innovative
financial technologies of banks in the agrarian sector is described.

Banks are interested in developing and mastering innovative financial technologies in the
agrarian sector which contribute to the improvement of the quality of service solutions, as
well as the modernization of competitive market positioning tools to minimize operating
costs and optimize pricing policies that would meet the growing competitive position.
However, despite the banks active development of loyalty concepts it should be noted that
they now have some drawbacks and peculiarities of implementation that reduce their
effectiveness and don’t allow to achieve the desired tasks, in particular:

-the meaning of many loyalty concepts is focused on VIP-servicing of corporate
customers due to relatively high incomes that the banking structures receive from
their interaction with them; a deficit in domestic banks of high-tech, individual that
is focused on a certain cluster of consumers of the bank, costly, integrated loyalty
concepts due to insufficient development of innovative financial technologies of
banks and a lack of understanding of the importance of their mastery by senior
management of banks;

-loyalty of consumers is closely intertwined with the quality of service provision
by the bank and given the low quality of service in domestic banks, the effectiveness
of the implementation of these loyalty concepts is also considered low; the lack of
feedback from the client, limited awareness of domestic banks about requests,
values, wishes and problems of their own consumers reduce the productivity of the
development of loyalty concepts, prevent the formation of partnerships between the
banking institution and the client and often lead to a client's transition to another
banking institution.

It is emphasized that in general the effectiveness of the development of innovative
financial technologies in the agrarian sector in the domestic banking business is
rather low (Table 1).

Therefore the diagnostics of the achievements of the development of innovation and
financial technologies in the agrarian sector by domestic banking institutions has
been carried out, indicating that currently Ukrainian banks individually implement
separate elements of innovation and financial technologies in the agrarian sector and
have a number of applied problems in establishing partnerships with customers,
namely: shortage of developed chain of realization of perspective client-oriented
strategies with outline of stages, parameters, conditions of their development in the
bank; low level of customer service and the expediency of mastering a complex of
special measures to increase the quality of banking services.
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