Development of Mobile Banking in Open Joint-Stock Company MTS Bank

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2. Introduction

The main objective of this paper is to identify possible ways for development of mobile banking in Open Joint-Stock Company “MTS-Bank” (MTS-Bank) that thwart realization of retail business strategy.

MTS-Bank is a private Russian bank and was established in 1993 as a corporate bank for Joint-Stock Financial Corporation “Sistema” (“Sistema”).

Sistema is the main shareholder of MTS-Bank. Sistema is the largest publicly traded diversified holding company in Russia and CIS. The group owns a diverse set of public and private companies, which it holds in several distinct portfolios (Sistema, 2014).

In 2010 bank changed its strategy cardinally. The strategy of MTS-Bank development stipulates the creation by 2017 a large universal bank on a federal scale with a developed and diversified retail network, extensive and loyal client base formed on the basis of up-to-date product offers, modern IT-platforms and accurately positioned brand (MTS-Bank, 2014).

MTS-Bank has the unique retail business strategy based on collaboration with one of the largest telecommunication carriers in the Russian Federation – Open Joint-Stock Company “Mobile TeleSystems” (MTS) (MTS is a part of Sistema).

According to retail business strategy it is expected to attract 60% of new customers (approximately 3 mln new customers) through mobile channel. This goal could be achieved through synergy between the bank and the telco.

In order to ensure target results it is necessary to upgrade mobile banking. To analyze possible ways for mobile banking development COBIT 5 Goals Cascade was used as widely-accepted business framework for the governance and management of IT (ISACA, 2014).

3. Methods

Each enterprise conducts business in its own environment...

... middle of paper ...

...work for the Governance and Management of Enterprise IT. Available at: http://www.isaca.org/COBIT/Pages/default.aspx?cid=1003566&Appeal=PR (Accessed: 04 April 2014).

8) J’son & Partners (2013). Divelopment prospects of remote services in the Russian Federation. Internal report for MTS-Bank.

9) J’son & Partners (2013). Russian market of mobile payments (October 2013). Available at: http://www.json.ru/files/reports/2013-10-16_Mobile_Payments_MW_RU.pdf (Accessed: 05 April 2014).

10) Jones Lang LaSalle (2012). Global Retail Banking: KeyTtrends and Implications for Retail Banking Real Estate. Available at: http://www.joneslanglasalle-mena.com/ResearchLevel1/JLL_Global_Retail_%20Banking_low_res_5_July.pdf (Accessed: 06 April 2014).

11) Willcocks, L. P., and Lester, S. (eds) (1999). Beyond the IT Productivity Paradox. Available at:
http://ebusiness.mit.edu/erik/bpp.pdf

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