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).
Each enterprise conducts business in its own environment. This environment is determined by internal and external factors. Thus management and governance systems have to be built with allowances made for factors relevant for the given enterprise (ISACA, 2014).
Stakeholder needs have to be transformed in a strategy. COBIT 5 Goals Cascade is a tool for conversion of stakeholder needs to specific, practical and bias enterprise goals, IT-related goals, enabler goals. This conversion allows establishing and choosing specific goals on each level and in each area of management for optimal congruence of stakeholders, enterprise and IT-related goals (ISACA, 2014).
4.1. Current situation with mobile banking in MTS-Bank
Mobile banking was launched in MTS-Bank in April 2011. At this stage number of remote channel users is 2 mln customers.
Mobile banking in MTS-Bank has some weaknesses that don’t allow to get competitive position:
6) Low level of usability comparably to competitive environment.
7) Limited capacity of functional services development (because of I-platform).
8) Lack of instruments for analyzing client’s data.
9) Impossibility of targeted communication.
10) Weak business logic of IT-platform.
4.2. Stakeholder drivers
At the present time retail banks all...