Doctor of Economics, Professor at the Finance Department of Kyiv National University of Trade and Economics
Postgraduate student at the Finance Department of Kyiv National University of Trade and Economics
ECONOMIC NATURE OF CREDIT SERVICES
Background. The rapid development of the service sector is inherent to modern economies. Credit services are an important component of the service sector, the consumption of which increases under the influence of the constant growth and the transformation of human needs because of the changes in production conditions of consumer goods, people’s views on consumption, fashion, social status, income and technology improving. That is the reason of necessity for further researches of the essence of credit services.
The aim of the article is to study the specificity of credit services as their type.
Material and methods. The study was conducted using such basic methods as theoretical generalization, system analysis, induction.
Results. The emergence of credit services is partly caused by human desire to accelerate the satisfaction of the perspective needs. The essence of credit service is largely determined by the definition of "service". Specific features of credit services to individuals are defined by their components. The analysis of scientific literature proves that credit service has the following components: the need for it, purpose of its receipt, motive of activity (the object on which it focuses), actual course of activity, means to achieve the goal, performance.
Credit product as a result of human activity on providing by financial institutions of the particular type of credit that satisfies concrete needs of individuals, should be considered as primary in relation to credit service. Credit product is realized in a credit service, which is made for continuous sale and becomes a commodity on the market of credit services to individuals. Taking this into account, credit product should be considered as the initial step in the creation of credit services. At the same time the credit transaction is a set of ordered actions of the financial intermediary staff concerning customer’s satisfaction in getting credit service and credit service is the result of industrial activity of financial intermediary’s employees as the process of customer’s credit satisfaction. Credit services are realized through the implementation of credit and support operations that collectively acquire consumer value and satisfy the needs of the consumer-borrower that is an individual.
Classification of credit services should be made by the following features: the content of credit service, the type of credit service, the subject of service, the place of service providing, their sellers, their standardization, the level of their availability.
Conclusion. The conducted study enables to state that credit service is an economic weal that meets the needs of the household. It’s a type of financial services. Credit service to individuals is an activity of financial intermediaries of credit transactions performance with financial assets in the interests of the consumer-borrower.
Credit service to individuals is, on the one hand, the result of interaction between the seller and the consumer-individual, on the other hand it’s an internal operation of the financial intermediary that creates credit products. Distinguishing special features of credit services to individuals and their classification will facilitate the creation and the implementation of marketing strategy of financial intermediaries in the future.
Keywords: credit service, credit product, credit operation, components of credit services to individuals, direct credit services, indirect credit services.
FREE FULL TEXT (PDF)