COMPETITIVENESS OF NON-BANKING FINANCIAL INSTITUTIONS ON THE FINANCIAL SERVICES MARKET

Abstract

The importance of financial market entities in solving the problem of providing financial resources for the development of the real sector of the economy is shown. The importance of non-banking financial institutions in eliminating the shortage of financial resources, the revealed potential of their development and the possibility of competing with banking institutions under certain conditions was noted. Development problems of non-banking financial institutions and macro- and microenvironmental factors that reduce their competitiveness on the market of financial services are revealed.

The conditions for the emergence of competition between non-banking and banking financial institutions have been studied, and the zones of their monopoly and competitive activity in the market of financial services have been determined. The peculiarities of the activity of non-banking financial institutions, which has a highly specialized nature and its negative and positive sides, are revealed. Certain competitive advantages of non-bank financial institutions compared to banks have been identified, which makes them serious players in the financial services market. Those types of financial services where non-bank financial institutions are a serious competition to banks are defined. Factors that ensure the competitiveness of non-bank financial institutions and the potential for its growth are also revealed. Ways to increase the competitiveness of non-banking financial institutions have been investigated, the main ones being: the introduction of digital financial technologies, the organization of advertising support for financial services, the minimization of the risks of intermediary activities, the state regulation of the activities of non-banking financial institutions, the introduction of new lending schemes and the reduction of the price of loan capital, the use of the experience of European countries in the field of non-banking financial services.