Exam Task №2. American Express Redefines Its Strategy Transport & Communication Institute, 2022 Vitalijs Goncarenko Abstract This work will allow the reader to get acquainted with the study on the improvement of money transfer systems, as well as the difficulties faced by entrepreneurship in the field of banking. The purpose of this work is to consider one of the main economic products of the financial market - a modern system of money transfers. The reader will get acquainted with the main activity of which is a comprehensive service for individuals and legal entities, and will also have knowledge and understand the mechanisms and tools for improving modern money transfer systems, where new levers of influence and development of payment systems are required in connection with the development modern money transfer systems in the global economic market. Introduction The rapid and sustainable development of the country's economy depends not only on the introduction of new, more efficient production and financial technologies, but also on the willingness and ability of the population to accept and use such technologies. Thus, it is necessary to constantly take care of improving the financial literacy of citizens. The effectiveness of public participation in the modern economy directly depends on understanding how new financial products can be used. Therefore, the main task that the banking system is solving today is to increase the availability of financial services for citizens of the country. The modern system of money transfers (VISA, MASTERCARD, AMERICAN EXPRESS) allows citizens of the country to have access to financial services of the banking sector. In other words, any banking system, expands remote banking (Internet access to the bank account of an individual or legal entity), which makes it possible to increase the availability of banking services. Clients of the banking sector, entrepreneurs and persons who are interested in the banking sector will be able to have a concept of modern money transfer systems, including types of money transfer systems. The massive use of bank cards allows credit institutions not only to expand their business, but also to start providing financial services based on payment systems. One of the main advantages of payment cards is that international cards can, under certain additional conditions, remain operational even when the bank cannot conduct either international or domestic settlements. For many clients, this may be the first time they have access to legal financial services, since legal services are usually much safer and cheaper than their alternatives. For many clients, funds received through the system make it possible not to be left without money at a difficult moment. Those, for each client there is an opportunity to choose a service or product presented at a financial institution, which is one of the positive aspects of the introduction of plastic cards. In addition, there are many places in the world on our planet where banking systems are limited due to low economic interest, the legislation itself or other conditions. In accordance with this, there is a category of the population that is outside the power of banking systems. Therefore, there is no possibility of providing of money transfer. The main functions of modern monetary systems Payment cards are in demand in the retail payment market. The main characteristic features of modern monetary systems translations are: Funds in money transfer systems are “transported” to electronic form, but are accepted and issued in cash. The transfer does not require opening an account. There is a reliable security system that guarantees the transfer of funds only to the recipient specified by the sender. Various tariffs for money transfer, thus the client has the right to choose a money transfer system; The money transfer market leaders specializing in money transfers across different countries are WesternUnion and MoneyGram, which have the commission for the transfer does not depend on the direction of the country where the money is sent. The difference between state banks and non-state. What is pros and cons? Any financial product has its advantages and disadvantages. For example, the presence of a large number of service points provides an opportunity to serve a large number of customers. Preferential programs allows to raise the rating, therefore, customer has the lowest percentage of money transfers. Today, the card business for credit institutions, according to their own assessment, is profitable. Therefore, the development prospects of the payment card market is a priority for the use of cards in everyday payments. One of the main factors is an increase in the level of income of the population and an increase in the number of trade and service points and ATMs. At present, along with classical bank transfers, banks offer money transfer services without opening an account. For example, WesterUnion: 1. 2. Points of deposit / withdrawal Availability of service points for sending and receiving funds, which is available in any city or any country where there are branches of the system. Online translation - In connection with the transition to the Internet, many banks are switching to the possibility of providing services transfer funds electronically, it saves time by not visiting bank branches. 3. Speed - Cash available for collection within a few minutes after sending, which is a hallmark of a state-owned bank. 4. Transaction security security is a priority. - transaction The non-profit banks, unlike state banks, face one of the main problems that concerns the legislation itself. 1. This is the lack of transparency of the money transfer system for individuals or legal entities. In other words, non-profit banks do not give customers the opportunity to compare services. 2. The second factor is the concealment of information that may lead to unfair competition. 3. Weaknesses in infrastructure - providing a large number of points of issue of money transfers, which require a large amount of investment. 4. Insufficient level of development of financial infrastructure - such a definition is given for third world countries. Another important problem is the development of the legal framework for money transfers, because for many countries the internal legislative acts are different, so there are technical problems with money transfers in a transactional operation (senderreceiver) Phishing – A new way of scamming of payment systems and banking systems A lot of time ago, various electronic payment systems appeared in the banking sector, which began to offer Internet banking. A new scam scheme, the purpose of which is to defraud users of card numbers and passwords for accessing bank accounts and payment systems accounts. This method has become very popular and profitable way to steal information. The real purpose of this attack was access to other people's accounts. Those. recipients received fake messages asking them to provide a password to enter the system in order to modify the information. Of course, just so confidentialities, no one will leave. How it works? For these purposes, scammers buy a database of users' email addresses and send out e-mails that contain information or a false website that is asked to enter personal data. Most ignore, and some lose access to their accounts. Therefore, the scammers are developing a new website that repeats the design elements of the bank. Emission. A new strategy approach in the card business Card issuance (emission) is the most common business strategy in the world. The main reason for using it is the low investment for entering the market. The policy of payment systems encourages issuing activity. The profitability of operations has changed over the past few years, and now many people have different points of view: some believe that the issuance is profitable, others – it’s non. The difference in the emission market is based on several types, namely: Local; International (Visa, MasterCard) Exclusive ( American Express, Diner Club ) Among all issued cards by AmEx cards, American Express achieved the highest level of income. Such a card is a financial instrument that includes: 1. Traditional financial services; 2. Settlement services; 3. Savings services; 4. Credit services. 5. Currency exchange services; In other words, emission is a tool, but also a service for the accumulation, saving and storage of funds in various currencies on the accounts of individuals or legal entities. Conclusion The system of money transfers is in demand in the market and is an important tool for many people to use of monetary transactions. It is based on a strategy to find the needs of customers, which leads to an increase in the profitability of banks. According to banking specialists, banks can implement a strategy to increase the profitability of their operations by up to 50% per client. The main reasons that the development of payment systems as a direction of banking, where various bank divisions offer products to the same group of customers, focusing on one product, in addition to low costs. Therefore, it turns out that there is no general development plan. On the other hand, payment systems are in demand in the market. Money transfer systems, in my opinion, are convenient because of the speed of transfer, reliability, i.e. confidentiality, the minimum amount of the commission fee and the possibility of online transfer with a simplified system identification.
