Banking Products and Services as Crucial Drivers of Bank Competitiveness Within the Financial Market: A Review Approach

Purpose: This paper aims to comprehensively examine the significance and characteristics of banking products and services, emphasizing their function as competitive instruments within the financial market. Design/Methodology/Approach: This paper addresses the issue of banking products and services, defining their meaning and identifying differences between them. Furthermore, it presents the key characteristics of banking products and services that mostly impact a bank's competitive position. The study is theoretically descriptive and is based on an extensive review of the relevant literature. The research methods included a critical literature review, comparative analysis, and synthesis. Relevant articles were identified through searches on Web of Science, Google Scholar, BazEkon, and other databases. Findings: Generally, the range, quality, and price of banking products and services are the main determinants of banks' competitive position. Understanding bank competitiveness requires considering three key dimensions: the diversity of banking products, customer service quality, and the efficiency of IT transaction systems. Practical Implications: The research findings may prove valuable for bank managers seeking to develop effective bank competition policies that enhance their competitive advantage in the market. Furthermore, the results provide a foundation for empirical scientific research on banks' competitiveness. Originality/Value: The paper provides a comprehensive examination of banking institutions’ competitive position and competitiveness based on the range, scope, quality, and prices of their products and services. It proposes a theoretical model of customer satisfaction, trust, and loyalty stemming from e-banking products and services use.