Economic Themes (2017) 55 (3) 4, 353-376


Valentina Nestorov

Abstract: In recent decades, the main characteristics of developed countries have been numerous changes in the banking industry, which led to the emergence of new trends. We are faced with the continuing trend of creating new banking products, as a result of the demands and desires of consumers, as well as stronger competition between banks and non-banking financial institutions. Due to increased competition, banks are losing a significant share of the financial market. Due to the new situation, banks are increasingly, in the context of their banking products, including newer services, in order to counter the competition of non-banking financial institution, i.e. banks are beginning to offer non-banking operations. In this way, banks engage in high-risk zone, which, if not directed in the right way can jeopardize banks’ operations. The aim of this writing is to highlight the importance of convergence of banking and non-banking financial institutions, which is still underdeveloped in the Serbian market. The purpose is to raise awareness with banks and other non-banking financial institutions that joint cooperation in reference to connectivity can bring benefits financially and in terms of increasing mutual trust of clients and suppliers of services. It could be beneficial to both banks and non-banking financial institutions as well as to final users - customers.

Keywords:  development tendencies of banking; operations of non-banking institutions; synergy effects; the level of convergence

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