კონფერენცია

∘ Leila Ghudushauril ∘
SELF-SERVICE BANKING IN GEORGIA: REALITY AND PERSPECTIVE

Abstract

For commercial banks, the introduction of innovative technologies and projects is an integral part of the work process. As the discussed example of JSC Procredit Bank showed, despite the fact that the bank actively uses innovations in the process of banking services, at this stage, the transition to a self-service model is not a tool for competitiveness, because society is still lagging behind the pace of technological development, which can be overcomed over time. In 2018, the majority of Procredit Bank customers were not ready for the changes that the bank introduced. It is a fact that even today many bank customers prefer to visit a branch. Especially in the case of older people, it is difficult to change their behavior and switch to remote channels.

In addition, the concept of Direct Bank in Procredit Bank JSC led to a reduction in staff over time. Also, for some clients, the lack of a physical connection and different approaches are unacceptable. However, innovation trends and technology development in the Georgian banking sector are taking place at a fairly fast and growing pace, and perhaps in the future, as a result of a generational change, the demand for branches and traditional banking services will no longer be relevant in the modern world.

Modern banking activity is unthinkable without information and technological innovations, their competitiveness and profitability are fully associated with the use of modern technologies. The development and implementation of remote banking products has accelerated especially in regards of the Covid-19 pandemic, when the world has moved to the online space and the main priority of banks has become the provision of a variety of remote banking services to customers and the transition to the self-service model of traditional banking branches.

Procredit Bank JSC is one of the first banks in the Georgian market to start the digitalization process and at the same time distinguish itself by sharing European experience.

The paper considers and analyzes: the process of transformation of traditional bank branches to a self-service model on the example of Procredit Bank, namely: the introduction of the concept of Direct Bank; Formation of a self-service zone - 24/7; Implementation of video identification service. In addition, attention is focused on the features and results of the implementation of innovative projects to promote credit products, and an opinion is expressed in the direction of their further improvement.

Keywords:Pro Credit Bank; Technological innovation and remote banking; Concept of Direct Bank; Self-service area 24/7; Video identification.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Leila Ghudushauril ∘ SELF-SERVICE BANKING IN GEORGIA: REALITY AND PERSPECTIVE Abstract For commercial banks, the introduction of innovative technologies and projects is an integral part of the work process. As the discussed example of JSC Procredit Bank showed, despite the fact that the bank actively uses innovations in the process of banking services, at this stage, the transition to a self-service model is not a tool for competitiveness, because society is still lagging behind the pace of technological development, which can be overcomed over time. In 2018, the majority of Procredit Bank customers were not ready for the changes that the bank introduced. It is a fact that even today many bank customers prefer to visit a branch. Especially in the case of older people, it is difficult to change their behavior and switch to remote channels. In addition, the concept of Direct Bank in Procredit Bank JSC led to a reduction in staff over time. Also, for some clients, the lack of a physical connection and different approaches are unacceptable. However, innovation trends and technology development in the Georgian banking sector are taking place at a fairly fast and growing pace, and perhaps in the future, as a result of a generational change, the demand for branches and traditional banking services will no longer be relevant in the modern world. Modern banking activity is unthinkable without information and technological innovations, their competitiveness and profitability are fully associated with the use of modern technologies. The development and implementation of remote banking products has accelerated especially in regards of the Covid-19 pandemic, when the world has moved to the online space and the main priority of banks has become the provision of a variety of remote banking services to customers and the transition to the self-service model of traditional banking branches. Procredit Bank JSC is one of the first banks in the Georgian market to start the digitalization process and at the same time distinguish itself by sharing European experience. The paper considers and analyzes: the process of transformation of traditional bank branches to a self-service model on the example of Procredit Bank, namely: the introduction of the concept of Direct Bank; Formation of a self-service zone - 24/7; Implementation of video identification service. In addition, attention is focused on the features and results of the implementation of innovative projects to promote credit products, and an opinion is expressed in the direction of their further improvement. Keywords:Pro Credit Bank; Technological innovation and remote banking; Concept of Direct Bank; Self-service area 24/7; Video identification.