Demchenko A. Innovative mechanisms of retail in the banking sector of Ukraine

The theoretical generalization and the actual scientific problem solution is proposed, which deals with deepening of theoretical and methodological positions, improvement of scientific and methodical approaches and development of practical recommendations concerning the functioning of innovative retail mechanisms in the banking sector of Ukraine. The scientific approaches to the definition of “retail”, “banking retail”, “the innovative mechanism of banking retail” are analyzed, and own interpretations of these concepts are grounded, which are based on specific approaches to the organization of bank innovation activity and take into account the customer-oriented policy of providing banking services. The approaches to the division ofinnovativebanking retail mechanismstypes are substantiated, taking into account the range of innovative methods, principles and functions used in the bank's innovation policy in the process of forming its business models and business processes. The classification of banking retail risks is developed, external and internal factors influencing them are distinguished. The essence and structure of the innovative banking retail mechanism is specified and approaches to the distinguishing of its types in the context of specifying goals and objectives are systematized. Risks arising from the operation of innovative retail mechanisms in the banking sector are identified, their classification and ways of minimization are substantiated. The current state of the banking services and banking innovations market in Ukraine is analyzed, peculiarities of the banking retail developmentand factors that inhibit it are revealed. Methodical approaches to identifying business models of banks in the context of increasing the efficiency of banking products sales channels are developed. The methodical approach to distinguishing six stages of the client-oriented innovativebanking retail mechanism functioning is improved: 1) assessment of the general situation on the banking services market; 2) analysis of the bank competitive environment; 3) determination of consumer demand for banking services; 4) research of individual banking services and their analogues; 5) modeling of banking services; 6) assessment of the banking services introduction feasibility. The consistent implementation of these six stages will ensure achievement of the maximum correspondence between banking products / services and ways of their realization in the structure of clients’consumer preferences. The directions of the innovative retail banking mechanisms development are substantiated, which in the theoretical context allow to develop the theoretical and methodological provisions for the functioning of the bank sales integrated system, and in the practical aspect are oriented towards improving the quality of individualclients service; reducing risks associated with the retail banking services provision; improving the bank's performance with each client and profitability of the retail business in general. The approaches to distinguishing the innovation banking retail mechanism are envisaged, which are based on the grouping of theinnovative methods, principles and functions involved in the bank's innovation policy in the process of forming its business models and business processes, and allow for the three types of mechanisms allocation: 1) one type is oriented towards the creation of an efficient banking product sales system; 2) second type is aimed at creating the maximum consumer value for a client; 3) third type is aimed at creating a system for interaction between the bank and clients; such an approach will contribute to the development of a modern banking theory stage. The methodical approach to calculating the bank's productivity by increasing the share of retail sales is developed by calculating the ratio of the provided banking services volume index to the corresponding labor costsindex, the implementation of which will contribute to improving the innovative banking retailmechanisms efficiency. The directions for improving the innovative banking retailmechanismtools are substantiated, such as: improvement of the individual clientsservicequality; reducing risks associated with the retail banking servicesprovision; improving the bank's performance with each client and the retail business profitability in general. The peculiarities of innovative retail banking mechanisms functioning abroad are analyzed and proposals on the possibilities of their application in Ukraine are developed.