engleski

The Impact of Financial Services Development on the Living Standard of Population in Bosnia and Herzegovina

The development of new financial services represents a major challenge for financial institutions. There are more and more competitors in the market, it is becoming easier to move from one bank to another, and customers are looking for better value. The economic crisis, scandals and pandemic also affected the distrust of users in financial institutions. On the other hand, the living standard in this part of Europe is quite low, compared to Western Europe and developed countries. Credit products are in high demand in this area due to the existential needs of the population. Non-purpose loans, as the most expensive loans in developed and socially stable environments, are used exclusively for personal entertainment, such as going to restaurants, wellness programs, entertainment tickets and similar events. This paper confirms that in Bosnia and Herzegovina most non-purpose loans are spent for existential purposes, what leads in a large percentage of the socially vulnerable population. By increasing the offer of special-purpose loans, which are much cheaper than non-purpose loans, customers would be more satisfied and it would be easier to repay the loan financially.

financial services, new product development, living standard

nije evidentirano