INTERNET BANKING: ANALYSIS OF INFLUENCE OF PENETRATION FACTORS IN KAZAKHSTAN AND BULGARIA

Author:

V. I. Blagoev
Professor, PhD, Vice-rector,
Varna University of Management (VUM),
149B Tsarigradsko shose, 1784, Sofia, Bulgaria
ORCID iD: https://orcid.org/0000-0003-3422-7951
Scopus Author ID: 26433077600
e-mail: blagoev@vum.bg
P. N. Zhelev,
Аssociate Professor, PhD, Vice-Rector,
Korkyt Ata Kyzylorda State University (KKSU),
29-A Aiteke Bi Str., 12000, Kyzylorda, Republic of Kazakhstan,
Scopus Author ID: 57207193999
e-mail: pzhelev@unwe.bg
E. P. Shustova
Сandidate of Еconomic Sciences, Аssociate Professor, PhD,
Head of the International Cooperation Department,
Kazakh Humanitarian Law Innovative University
11 Lenina st., 071400, Semey, Republic of Kazakhstan,
ORCID iD: https://orcid.org/0000-0003-1685-912X
Scopus Author ID: 57204011490
e-mail: shustova_yelena@mail.ru

Abstract:

Introduction. The main objective of this study is to analyse the influence of factors that determine the level of penetration of Internet banking among the population in the two countries – Kazakhstan and Bulgaria.The main objectives of the study include the analysis of such factors as demographics (population density, age structure), density of coverage of settlements by bank offices, Internet penetration rate, digital literacy, confidence in the banking system and technical devices related to the information security system.

Methodology. The methods of logical, statistical and graphical analysis were used. The statistical da-ta of the World Bank, the National Bank of the Republic of Kazakhstan, the Statistics Committee of the Republic of Kazakhstan, the National Bank of the Republic of Bulgaria, Eurostat were used for the analysis. For the first time we analysed the influence of density of distribution of banking offices on the territory of Bulgaria, studying the data presented on the websites of each Bulgarian bank. In addition, the sociological survey method (primary research) was used was used to identify the main factors influencing the develop-ment of electronic banking in Kazakhstan and Bulgaria. Four hypotheses were proposed, and have been confirmed or rejected based on the analyses.

Results and conclusions. All factors influencing the degree of penetration of internet banking among the country’s population can be divided into factors with direct and indirect impact.
The level of digitalization does not directly affect the level of penetration of information security in the country, but is an important condition for its development.
The level of financial literacy of the population, knowledge of major banking products and services, the possibilities of using remote banking channels, as well as receiving other financial services online is an important factor in the development of information security. Raising the level of financial literacy of the country’s population is a strategic task requiring comprehensive study through the lens of successful inter-national experience.
The age structure of the population does not have a direct impact on the development of information security among the population of the country.
The density of coverage of settlements by bank offices is not a decisive factor for the development of Internet banking in the country, although it indirectly affects it.
The level of consumer confidence in the banking system, in the bank they use, in technical systems and devices that are associated with the promotion of Internet banking services, is a key factor in the devel-opment of information security.

Keywords:

Internet banking, mobile banking, factors of Internet banking development, banks’ cover-age, computer literacy, financial literacy.