The Market of International Banking Services and their Implications on the Economy of the Republic of Moldova

Abstract

By progressing technological and scientific revolution it enters in various fields of the economy. The banking sector is able to compete with large high-tech companies, online banks ensuring effective and inexpensive communication with customers. The banking sector in the future will compete with large high-tech companies such as Facebook or Amazon, considering online banks on the forefront of the competitive fight due to efficient interaction with the customers and lower costs. The main difference between online banks and traditional is the absence of large office network: interaction with customers is mainly realized through websites, mobile banking, social networks or by phone. These banks usually develop their own high-tech platforms. Since the last decades, Moldovan banks have aligned their activities with the new legislative framework in relation to the implementation of Basel III standards by implementing the CRD IV package, which will be implemented in stages by 2020. At the same time, the National Bank of Moldova continues the process of promoting the banking sector reforms, focusing on shareholders 'transparency to attract new investors to meet higher quality requirements, establishing strong corporate governance in the banking sector, identifying bank affiliates and timely reflecting unfavorable loans in banks' balance sheets. The IT Park is set up in Moldova. The main objective of the initiative is to accelerate the development of the IT industry by accelerating the implementation of technologies in various fields, opening new jobs, attracting both internal and external investments and specialists. The concept of the Moldova IT Park model claims to be an ambitious and landmark project for the development of other areas; a community that will grow every year, to which new companies and projects will join and who will make new successes. All project actors want Moldova IT Park to become a useful and efficient project offering rich digital content and advanced information services, which in turn will increase the level of economic competitiveness and welfare of the population. Lately we witness spectacular changes in banking services. The banking system cooperates with IT companies to gain a competitive advantage. Thus, any bank is able to develop and deliver innovative solutions to consumers, streamlining the work and concept of banking services. These innovations offer unprecedented opportunities in financial activity. In the future, banking cards will be excluded, bank cards, branches and subsidiaries will be optimized, and banks will turn from service / product vendors to developers of consumer options and dreams. Any whim and transaction will be possible from any corner of the Earth.

This research aims to elucidate trends in the global banking market and prospects for the Moldovan market.

Keywords: banking sector, the future of banks, virtual banks, bank mergers, bank competitiveness