Economic efficiency of payment card system from bank`s point of view: evaluation specificity
Abstract. The article is devoted to the study of specific features of collecting and processing financial information in order to assess the effectiveness of a bank`s card payment system. The article discusses the features of estimating income and expenses in projects for the production and sale of card products, as well as the specifics of determining the financial results of such projects. Based on the results of the study, recommendations were developed to optimize the evaluation process. In particular, it is recommended to use traditional methods for evaluating investment projects, but taking into account specific banking risks and the complexity of forecasting financial returns on investment. Special attention in project management in this case is paid to the stages following the implementation stage: completion, maintenance of systems, training of employees, implementation of marketing programs. The assessment of financial indicators of card projects should be carried out as part of a comprehensive analysis of the bank`s activities, examining the relationship of the card payment system with other systems of the bank and evaluating income, expenses and financial results in the context of various activities of the credit institution and various banking products. The proposed approaches to valuation are flexible, adaptable to the conditions of specific banks and can be implemented within the framework of modern automated financial analysis systems. The research is based on a systematic approach. General scientific methods are used: analysis, synthesis, ascent from the abstract to the concrete. The research is based on information from secondary sources, as well as on the author`s personal practical experience. The results of the research can be used in practical activities (in the process of analysis, forecasting and decision-making) by managers of credit organizations that implement projects on the payment card market.
Keywords: payment cards, card payment system of a bank, the card project, the economic efficiency, the costs of the implementation of the card project, the revenues from the implementation of the card project
Highlights:
♦ the article examines the existing approaches to assessing the effectiveness of the bank`s payment card system; in particular, the features of estimating income and expenses in projects for the production and sale of card products, as well as the specifics of determining the financial results of such projects, are considered;
♦ it is recommended to use traditional methods of evaluating investment projects, but taking into account specific banking risks and the complexity of forecasting financial returns on investments;
♦ in this case, special attention in project management is paid to the stages following the implementation stage, such as refinement, maintenance of systems, training of employees, implementation of marketing programs;
♦ the assessment of financial indicators of card projects should be carried out within the framework of a comprehensive analysis of the bank`s activities, examining the relationship of the card payment system with other systems of the bank and assessing income, expenses and financial results in the context of various activities of the credit institution and various banking products;
♦ the proposed approaches to assessment are flexible, adaptable to the conditions of specific banks and implemented within the framework of modern automated financial analysis systems.
Georgy V. Khetagurov, North-Caucasian Mining and Metallurgical Institute (State Technological University), Vladikavkaz, Russia