Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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30 FEATURES OF THE DEVELOPMENT OF BANKING INFORMATION SYSTEMS IN AND FOREIGN COUNTRIES Lilia M. Yusupova1 Tatyana V. Nikonova2 Irina A. Kodolova3 Mariya A. Musailova4

Abstract: One of the areas of activity in abroad, and have characterized the above modern economy, where information mentioned systems, outlined the current technology value is traditionally high, is trends in the IT development in credit the financial and credit sphere. Computer organizations of modern Russia. The banking networks provide a research allowed the authors to drawa communication function and provide conclusion that information technologies access to shared resources. Information play an important role in attracting new systems of credit institutions allow to customers to banks and ensuring provide remote customer service. This interaction with them.. Information article examines the peculiarities of banking technologies directly determine banking information systems in Russia the credit organization's ability to and abroad in two main areas: remote develop business and improve internal banking services and information processes and customer service systems. technologies for the management of In this connection, the article suggests commercial banks. The authors have the further development of IT sphere as studied into the features of banking a factor of improving the quality of information systems in Russia and

1 Federal University, Institute of Management, Economics and Finance, Kazan, 420008, Russia. Email address: [email protected]. 2 Kazan Federal University, Institute of Management, Economics and Finance, Kazan, 420008, Russia. Email address: [email protected] 3 Kazan Federal University, Institute of Management, Economics and Finance, Kazan, 420008, Russia. Email address: [email protected] 4 Kazan Federal University, Institute of Management, Economics and Finance, Kazan, 420008, Russia. Email address: [email protected] Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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31 services and increasing the profit of remote databases and remote task banks. launch). Local and corporate networks unite the various departments of a bank, Key words: banking information thus increasing the efficiency of the systems, computer banking networks, credit institution and providing a various remote banking services, information protective tools measures against technologies of commercial bank unauthorized intrusion to banking management, electronic banking information. [1] Information systems allow to INTRODUCTION organize remote customer service e.g. Internet banking, card payment system, The widespread use of "Client-Bank" system; interstate, information technology has long been interbank cooperation in the territory of considered as necessity. The range of the CIS countries; international applications of IT sphere is extremely settlements, via the SWIFT system. The broad. One of the areas of high value is transfer of information can be conducted the financial sector. Despite the fact that via computer, telephone and mobile ten years ago, lending institutions used networks. manual methods of information The sphere of credit processing, nowadays almost any bank is organizations activity is mostly suitable obliged to use computers, electronic for the introduction of new computer terminals and electronic technologies, since almost all the tasks communications. that arise in the course of the bank's IT helps to maintain external operations are easily managed interactions with customers, bank automatically. Fast and smooth branches, correspondent banks in Russia processing of significant information and in CIS countries, with international flows is one of the main goals of any banks and other lending institutions. major financial institution. Computer networks provide a communication function and access to METHODS shared resources (file transfer, access to Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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32 The authors consider the features of information banking systems RESULTS in Russia and abroad in two main areas According to the IDC of application: remote banking services consulting agency data on November (RBS) systems and information 2015, world IT costs have increased in technologies for the commercial bank 2016 as in 2013 they have marked the management. worst dynamics since the recent financial RBS are one of the most crisis. At year-end 2015 world IT costs promising areas for the banking business have increased by 4% reaching 2,04 development. It allows to reduce trillion dollars (while in 2013 the growth operating costs significantly, as well as reached 5%) due to the reduction on the transaction thereby front-office key markets such as Chinese and personnel it saves the time of a hick is Russian. The volume of the world IT spent on communication with clients [2, banking market in 2015 reached 179,4 3]. bln dollars. (See fig. 1.5)

200 179,4 181 180 173,4 160 140

120 $ . . 100 World total expenses bln 80 Russia 60 40 20 1,046 1,127 1,23 0 2014 year 2015 year 2016 year

5Kovalev A. Banking engineering - a new world of finance // Financial director. - 2010. - No. 2. Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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33 Fig. 1. The share of expenses for information banking technologies in Russia from the total share of world expenditures

The banks of Asian-Pacific Thus, European banks, following the region spend on IT more than other example of their American counterparts, institutions. It is expected that this year started to provide the planning of their expenses are going to increase by personal annual expenses service which 5,9% reaching 62,3 bln dollars while is used for payment of public and other next year they will peak 66,5 bln dollars. compulsory services [6]. IT budget of North American banks has Currently, the amount of increased by 4% reaching 56,9 bln electronic banking in Western Europe dollars in 2015 while it reached 59,4 bln (Germany, Spain, France, the dollars in 2016. The lowest indicators are Netherlands), twice as big as amount in shown by European banks – 0,4% of the US. In Europe, a new branch in the growth. According to Forrester Research development of remote maintenance data banks spend on IT average of 7,3 % systems is gaining popularity. It is a from their profit [4]. merger of RBS for individuals and small RBS first was introduced in the businesses. In the Russian financial USA and was very well developed there. sector, there are different opinions on the Taking into consideration that almost need to connect these functions. The every American family has a PC, they prospects of this approach were use the Internet to communicate with supported by 57% of the polled banks, their bank rather calling there. Nowadays while the remaining 43% are sure that it almost 90% of American banks provide is unclaimed [7]. their customers with RBS [5]. The most important sphere in Despite the fact that the remote the development of remote banking service system has been invented in the services in foreign banks is Internet United States, it was widely used in banking. In Western countries, Internet Europe. European Internet banking banking provides the following copied a lot from the US banking system, opportunities [8]: but also has added something new to it. - payment of bills in real time; Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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34 - crediting; estimates of the functionality of the - cash management. Internet bank a sing a scale of 0 to 10 Along with the web- points and an assessment of the usability representative offices of traditional using a scale of 1 to 5 points. banks in America, there is a relatively For the past year large number of Internet banks Credit Bank, Zapsibcombank, Trust specializing particularly in Internet Bank, Russian Standard Bank and Bank banking. [9] of St. Petersburg have left the top ten of The number of traditional banks the Internet bank rating. The following that provide Internet services 89. Out of banks entered the list of the top 10: the 100 largest US banks, more than 70 , Bank Uralsib, Mail percent provide online services. In the Bank, Raiffeisenbank and Sovkombank. spring of 2017, Markswebb conducted The Internet banks of Binbank (formerly an Internet banking survey in Russia and Internet bank of MDM Bank), Tinkoff issued evaluation to 36 credit Bank, Promsvyazbank, Alfa-Bank and institutions. Functionality and usability VTB, were recognized as the most were assessed, and overall scores efficient Internet banks in terms of according to a 100-point scale were also interface and functionality. Table 16 published. In brackets, there are

Table. 1. Rating efficiency of Russian Internet banks Place Bank Scores 1 Tinkoff Bank 77,4 (8,2 / 3,9) 2 Promsvyazbank 73,5 (7,9 / 3,7) 3 Alfa-Bank 66,3 (7,2 / 3,4) 4 VTB 65,5 (6,6 / 3,6) 5 Sberbank of Russia 64,3 (6,1 / 3,7) 6 Bank Uralsib 64 (6,3 / 3,6)

6Information resource Markswebb [electronic http://markswebb.ru/e-finance/internet- source]: The effectiveness rating of Russian banking-rank-2017/ Internet banks. 2017. Access mode: Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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35 7 Mail Bank 63 (7,2 / 3,1) 8 Raiffeisenbank 62,5 (6 / 3,6) 9 Sovcombank*** 61,8 (6,8 / 3,2) 10 MKB 61,5 (6,3 / 3,4) 11 Zapsibcombank 61,3 (6,7 / 3,2) 12 Bank Trust 60,2 (6,7 / 3,1) 13 Russian Standard 59,1 (6,3 / 3,2) 14 BCS 58,6 (6,2 / 3,2) 15 VTB24 58,5 (5,7 / 3,4) 16 Renaissance Credit 58,4 (5,4 / 3,5) 17 Bank of St. Petersburg 58,2 (6,9 / 2,8) 18 Bank Eastern 57,3 (5,7 / 3,3) 19 Bank Absolut 57,3 (5,7 / 3,3) 20 Bank of Kazan 54,7 (5,9 / 3) 21 Home Credit Bank 54,3 (5,6 / 3,1) 22 UBRD 53,3 (5,4 / 3,1) 23 UniCredit Bank 53,1 (5,6 / 3) 24 Rosselkhozbank 52,8 (5,3 / 3,1) 25 AK Bars Bank 52,3 (5,2 / 3,1) 26 Bank Avangard 50,6 (6,1 / 2,5) 27 MTS Bank 47,8 (4,8 / 2,9) 28 Rosbank 45,7 (4,1 / 3) 29 Bank Zenit 41,6 (3,8 / 2,8) 30 OTP Bank 40,5 (3,2 / 2,9) 31 Citibank 39 (3,2 / 2,8) 32 Credit Europe Bank 37,1 (3,4 / 2,6) 33 Bank Vozrozhdenie 36,7 (3,3 / 2,6) 34 Gazprombank 33,7 (3,9 / 2,1)

Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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36 Internet is presented the results of a study of the more focused on legal clients. For them, Russian market of remote banking based on European counterparts, banks services to retail customers. The survey developed such applications as "Bank- showed that more than half of banks are Client" and "Internet-Bank". With their satisfied with their RB systems without help, businesses and banks save a lot of having the functionality and time on moving documents, filing characteristics that are assigned the applications and transferring funds. highest importance. Priority RBS The most widespread system of systems of development of in the near RBS of legal entities is the "Internet future is the management of personal client" - it is installed by 90% of Top 50 finance (PFM). 43 %of banks will invest and Top 100 banks. The second place is in this area until the end of 2017. taken by a system of "bank-client" type: All surveyed banks have 84% of Top 50 banks and 73% of Top official websites on the Internet, but only 100 banks offer it to users. The system of 10 percent of them have a mobile version "centralized management of corporate that allows users to get information about finances of holdings" is used by 40% of the bank and its services via a mobile Top 50 banks and 27% of Top 100 banks phone conveniently. [10]. Thus, the RBS is a key to the Currently, almost half (46%) of activity of banks both, in Russia and in residents of Russian cities regularly use banks of Western countries, but the banking services on the Internet. Over development of this system has begun in the past year, the Russian Internet our country recently. At the same time, banking market has grown by almost 40 the main growth in the turnover of the % - up to 590 billion rubles. Taking into Russian market of banking non-mobile account the current trends by 2017, the is forecasted in the domestic Internet banking market can next 3-4 years. Thus, the growth of the grow by almost three times - to 1.6-1.8 market of banking non-mobile remote trillion rubles. financial services is expected to triple in In November 2016, the 5 years. company "Technoserv Consulting" Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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37 However, there are differences banks and assessing the possibility of between them: Western banks prefer to automating their activities, we have to outsource their organization and services state there is a lack of unification and to their RBS, while domestic banks standardization of banking technologies prefer to organize the entire system in Russia [11], which causes problems themselves, spending additional money with training personnel with information for the purchase of expensive equipment technology work on common for RBS systems. requirements. First of all, it should be noted Technologies for performing that the development of informatization the above mentioned banking operations in the banking sector depends on a large differ in various banks. There is a number of normative documents of discrepancy between the goals and regulators (the ) functions for the same automated and federal legislation (for example, the sections, the diversity in the technology federal law on personal data). On the one of documenting of the same operations, hand, reduces various risks, on the other the different forms of reporting, the hand, financial organizations are forced frequency of their presentation in to constantly find a balance between the different areas of management connected requirements of regulatory documents to the specialization of employees. This and the use of technology for business. led to the appearance of a large number Another important feature of of software tools on the market that banking informatization is special provide partial automation of banking security requirements. Russian standards activities. in the banking sector are already of the In many banking information same level with international ones, and systems only the most basic, most compulsory compliance with the same important tasks are automated according PCI-DSS standard obliges our banks to to system developers` point of view of. provide protection at a sufficiently high This can be explained by the absence of level. some services factoring, leasing, card Comparing the work of various services; but there are management tasks Russian banks with US and European that are solved in any bank which, as a Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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38 rule, are absent in most domestic tasks in the integrated BIS takes into banking information systems, for account their grouping simultaneously example, automated loan portfolio using three characteristics: quality analysis, forecasting and - management structure; planning of credit resources. - transformation of resources; In order to determine the - management functions. current world system-technical trends in the development of information DISCUSSION technology in the banking sector, we have to analyze the most widely known It should be noted that an and widely spread integrated banking important place in the functioning of automation systems offered on the banking information systems is taken by international market on a regular their protection. We came to the commercial basis. Partnership Leaders conclusion that Russia and the United are: IBM (USA), DEC (USA), Siemens States have a number of differences in (Germany), Oliwetti (Italy), Bull the security of banking information (France). systems (BIS), which we presented in - Analysis of the software Table 2. products of the Russian market (Sistema, BANKIR, ELBRUS, DORA, SADKO, Mercury SOFT, etc.) shows that the practical allocation of subsystems and Table 2. Differences in the security of banking information systems in Russia and the United States Russia USA 1 Assessment for strategic FSTEC (Federal Service for No problem risks Technical and Export Control) has no publications. 2 Availability of In Russia there is practically NIST (National Institute methodological no control after the of Standards and documents for protection certification of the system, as Technology (USA)) has Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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39 well as between the various already produced more stages of its certification. than one hundred special publications on this subject. 3 The result of the US government agencies implementation of the are accompanied protection system and its throughout the life cycle attestation of the existence of their information systems. And even at their last stage, decommissioning, NIST offers its recommendations.

The first difference is the risk The second difference in the assessment. Until recently, it was not total absence strategic risks assessment common in Russia to entrust owners of in Russia and other input data. Personnel information systems with assessment of absenteeism, weak communication risks. A set of protective measures was channels, lack of financial resources, determined, and it had to be territorial distribution, obligatory shift to implemented under any circumstances. cloud computing, the need for interaction At the same time, additional information with foreign organizations. [12] systems (mobile devices, wireless The third difference is the huge technologies) were either banned, or number of methodological documents on regulators ignored them. Now the the protection of one or another situation is gradually change, operators information technology or the and owners of information systems are implementation of a particular protective allowed to simulate the risk by process. NIST (National Institute of themselves. Standards and Technology (USA) has already issued more than 100 special Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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40 publications on this issue.) FSTEC (the and offered services, increasing the Federal Service for Technical and Export speed of settlement operations, and Control) has no publications, given the organizing electronic access of shortage of specialists, especially in the customers to banking products. In the regions, the methodological assistance of future it will contribute to the active the regulator is not enough. Central Bank introduction of the latest achievements in of Russia Federation is trying to correct the field of computer technology, the situation. network and information technologies, The fourth difference is what methods of information protection and happens after the implementation of the data processing into banking sphere. protection system and its attestation. In Russia there is practically no control SUMMARY after the certification of the system, as well as between the various stages of its In this research, the topic of certification. In the US, the situation is using information technologies in different: there are recommendations for banking has been considered. Within the building a process to monitor the level of framework of this topic it was proved security, responding to incidents, raising that the transition to the use of modern staff awareness, patch management, etc. technologies is justified not only due to In other words, US government agencies the additional functionality that is absent are accompanied throughout the life in the old technologies, or due to the cycle of their information systems. And increase the productivity of the system as even at their last stage, a whole, but also often due to a decommissioning, NIST offers its significant reduction in the regular costs recommendations, for example, SP800- of the production process accompanying. 88 Guidelines for Media Sanitization (a Evolutionary development of guide to destroying the carriers of the banking sector changes the protected information). requirements for the decision-making Thus, the main trends for both process, which entails changing the domestic and foreign IBS are improving requirements for the surveyed the quality and reliability of the products information, the development of Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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41 processing methods, and the business development and the visualization methods. Not only the improvement of internal processes and volume of processed information has customer service system. increased, but its qualitative composition In the consideration of the also has changed. Analytical information foregoing, in order to improve the is gaining importance in banking quality of services and the profit of characterizes the objects and entities banks, the following IT directions are involved in the business process. proposed: • optimization the banking CONCLUSIONS services and improvement of the customer service quality; Putting the survey, the authors • introduction of innovative accomplished the following tasks: banking technologies; - types of information banking • implementation of service technologies have been considered; standards quality; - have been considered the • increase of domestic banks features of banking information systems expenses for IT infrastructure. in Russia and abroad; A key approach to IT - have been analyzed modern management is the need for ongoing trends in the development of information improvement and optimization. Another technology in Russian credit institutions. component of the proper IT organization The research allowed us to come and management is the documented to a conclusion that the IT play a reflection of the main aspects of its dominant role in the new client attraction introduction and operation. At the same and integration. The issues concerning time, during the process of IT banking IT services are of great infrastructure improvement and new importance and should be thoroughly technologies introduction, the bank considered by top management of should also pay increased attention to the financial institutions. security of its information systems. Information technology directly determine the possibility of organizing ACKNOWLEDGEMENTS Periódico do Núcleo de Estudos e Pesquisas sobre Gênero e Direito Centro de Ciências Jurídicas - Universidade Federal da Paraíba V. 8 - Nº 04 - Ano 2019 – Special Edition

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42 The work is performed according to the Khubaev NG. - M: Publishing Center Russian Government Program of March, 2012. Competitive Growth of Kazan Federal Feofanov V.Yu. Preparation for University. automation: the human factor / /

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