INSTITUTION OF CREDIT CONSUMER COOPERATION: RESTRICTIONS AND COMPETITIVE ADVANTAGES

Author:

GOLOVKO Vadim B.1

Affiliation:

1. University of Tyumen

Abstract

The article provides a general description of the essence and specific characteristics of consumer credit cooperatives (CCC) as well as the assessment of degree of relevance of the issue of CCC development in the context of increasing financial accessibility in different territories of the Russian Federation. The author defines the scale of activity of credit consumer cooperation in relation to the microfinance sector, the savings and loan market of the Russian Federation as a whole and in relation to the sector of credit cooperation in other countries, including the percentage of involvement of the population of different countries in the processes of mutual financial assistance of the CCC. The historical context of the development of credit consumer cooperation in Russia is also briefly reviewed, and its quantitative parameters in the past and current periods are compared. The author determines the place of the modern institution of the CCC in the financial market of the Russian Federation in the context of the concepts of mass and niche, taking into account the specifics of the target audience and the predominant area of activity of credit cooperatives. In this regard, the following limitations and potential advantages are highlighted. The research has resulted in proposals to increase the competitiveness of the CCC in the savings and loan market. These suggestions are made in order to transform the sector towards a growth trend through the preservation of the key mechanics of the traditional service of credit cooperatives, which determine a high degree of loyalty of shareholders. The author’s ideas are combined with the addition of the practice of CCC activities with a set of modern functions, the provision of which is conditioned by both the cooperatives technological platforms and the form of organizing key internal processes. The final conclusion of the present work is that it is the implementation of such a dual strategy that will increase the competitiveness of the institution of credit cooperation and will ensure a return to the trend of its quantitative growth and qualitative development.

Publisher

Tyumen State University

Reference14 articles.

1. The Central Bank of the Russian Federation. 2021. The Bank of Russia Has Developed a Draft Roadmap to Improve the Regulation of Credit Cooperation for 2021-2024. Accessed on 25 December 2021. https://cbr.ru/press/event/?id=9719 [In Russian]

2. Golovko V. B. 2015. “The role of the institution of credit consumer cooperation in the processes of socio-economic development of the regions of the Russian Federation”. Proceedings of the 4th International Extramural Scientific and Practical Conference “Theoretical and applied research of socio-economic systems in the context of Russia’s integration into the world economy” (2 November 2015). Pp. 455-459. Tyumen: Tyumen State University. [In Russian]

3. Golovko V. B. 2015. “Evolution of cooperative philosophy and development of credit consumer cooperation”. Universum: Economics and Jurisprudence, no. 7 (18). Accessed on 25 December 2021. http://7universum.com/ru/economy/archive/item/2310 [In Russian]

4. Issues of Credit Cooperation (Appendix to the Journal). 2012. “From the history of the development of credit cooperation in Russia. ‘ABC of a shareholder’ from A to Z”. No. 1, p. 33. [In Russian]

5. The Central Bank of the Russian Federation. Microfinance. Analytics. Accessed on 25 December 2021. https://cbr.ru/microfinance/analitics/ [In Russian]

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