THE BANKING SECTOR CAPITAL CONSOLIDATION FACTORS IN INDUSTRY 4.0 AND COVID-19 CONDITIONS
Abstract. The paper is devoted to examination of consolidation factors in the banking sector in the context of Industry 4.0 and the complex global conditions associated with the global pandemic caused by COVID-19. The authors determine that the processes of consolidation in the banking sector were especially intensified in the XX century. The impetuses for this were namely the consolidation of industrial capital and expanding capacity of global markets, the growth of multinational corporations, the need to increase market capitalization of banks to expand lending capacity, increasing competition in the global banking market.
The correspondence of banking sector development stages to the waves of «mergers and acquisitions» and «industrial revolutions» (Industry 1.0 — 4.0) was established during the research. It is substantiated that the influence of Industry 4.0 in the COVID-19 era provides opportunity to expect further growth in both the number and value of transactions in the banking sector.
Examining the processes of banks consolidation in the global transformation of economic development, the authors found out that the main factors of Industry 4.0 and the COVID-19 pandemic influencing mergers and acquisitions in the banking sector are the following ones: impact of technology, introduction of artificial intelligence in customer service virtual banking and subordination of the goals of banking institutions to public values. The authors note that in the conditions of intensification of modern globalization processes, scientific and technological progress there is a negative impact of crisis phenomena on achieving the desired economic result, so considering the peculiarities of consolidation in the banking sector it is useful to take into account a number of current economic dynamics factors that will depend on the quality of economic situation assessment at different time intervals. The article considered numerous methodological approaches to assessing the factors influencing economic processes, which differ in the quality of information support, algorithms and mathematical complexity. Methodical tools are defined by the authors as a direction of further research.
As a result of the research, the authors established that in order to understand the success of the consolidation process of bank capital, it is necessary to have a certain criterion that can demonstrate the degree of adaptation of the banking sector to the current economic environment.
The obtained results indicate that it is system efficiency that should be chosen as such a criterion. The authors believe that in the modern technological way, the current concept of managing the activities of economic entities will be the «management of efficiency indicator», and not the management of the business as a whole or its individual business processes.
Keywords: banking sector, consolidation, COVID-19, Industry 4.0, industrial development, mergers and acquisitions.
JEL Classification G21, G32, G34, O14, O16
Formulas: 0; fig.: 3; tabl.: 1; bibl.: 24.
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Copyright (c) 2021 Я. Глущенко, О. Корогодова, Т. Моісеєнко, О. Сосновська, Н. Черненко
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