Functioning and Development of Retail Banking in Russia

Abstract

The article shows the results of research of functioning and development of retail banking in Russia. The article views topical issues related to specifics of this segment of banking sector. Experience in retail business allows banks to develop goods and services which are in highest demand by population and have a huge social importance, which is the basis for the study of the role of banking services as a social component. Successful development of retail banking requires constant perfection of channels of promotion and distribution of products and services, which leads to emergence of automatized offices of self-service and online bank offices in the Internet. The notion of infrastructure of retail banking is revealed, which should be understood as synergy of classical infrastructure and virtual implementation of the processes of realization and promotion of goods and services. The article views the models of evaluation and forecast of credit risk and shows principle of managing the retail credit risk, which are the foundation of the organization of system of retail credit risk management. The authors formulate the priorities of development of the system of management of retail credit risk. The conclusions substantiate that active development of retail banking is accompanied with high risks and high level of competition in the market of banking services, which leads to necessity for constant search for actual and effective solutions in the sphere of organization and development of retail banking.

DOI: 10.5901/mjss.2015.v6n6s4p274