Open Access Peer-reviewed Research Article

Ensuring risk-free e-banking services in Russian-economy: Policy guidance

Main Article Content

Akim M. Rahman corresponding author
Saadi Islam


In today’s e-banking, customers compete for comparative time-saving-options. Banks compete for maximizing profits. But many factors are unpredictable. These are perceived risks factors (PR) that undermines growth trends of e-banking in economy country-wise such as Russia. Bank-deposits, bank-accounts are covered by Deposit Insurance System (DIS) in Russian-economy. However, PR-factors are not covered. It causes abuses. Addressing the dilemma, application of Akim’s model – Voluntary Insurance (VI) as a product can be instrumental attracting more individuals using e-banking. Welfare Analyses are used as guidance for ensuring efficiency-cost or competitive pricing of the VI so that it becomes appealing to both customers and Banks. When bank is an insurance-provider, under asymmetric-information, existence of adverse-selection-group is detected where estimated welfare-cost associated with inefficient pricing created by adverse-selection is small. However, advantageous-selection-group in market results opposite. The findings can be helpful in policy-design ensuring risk-free digital-banking, which can attract policy-practitioners in Russia. Using customers-opinions can facilitate empirical studies.  

e-banking, perceived risk, digital banking, voluntary insurance, adverse selection, advantageous selection

Article Details

How to Cite
Rahman, A. M., & Islam, S. (2022). Ensuring risk-free e-banking services in Russian-economy: Policy guidance. Frontiers in Management and Business, 3(2), 207-218.


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