Mobile Banking, Rating Agencies and Letters of Credit: Synergetic Effect

Tyumen State University Herald. Social, Economic, and Law Research


2017, Vol. 3. №1

Mobile Banking, Rating Agencies and Letters of Credit: Synergetic Effect

For citation: Breev I. V., Breeva A. V., Rudnaya L. V. 2017. “Mobile Banking, Rating Agencies and Letters of Credit: Synergetic Effect”. Tyumen State University Herald. Social, Economic, and Law Research, vol. 3, no 1, pp. 251-265. DOI: 10.21684/2411-7897-2017-3-1-251-265

About the authors:

Igor V. Breev, Director of Trade Finance and Correspondent Banking Division, West-Siberian Bank (Sberbank of Russia Branch; Tyumen);

Alla V. Breeva, Cand. Sci. (Eng.), Associate Professor, Department of Applied Mathematics, Ural State University of Economics (Yekaterinburg);

Larisa V. Rudnaya, Senior Lecturer, Department of Applied Mathematics, Ural State University of Economics (Yekaterinburg);


This article presents an analysis of the current state of mobile and internet banking, as well as evaluation the efficiency of integration with the third-party rating agencies. The authors reviewed and revealed the Buyer’s risks, assessed them on a general basis, examined possibilities for rating agencies to provide information about counterparty’s risk level, as well as considered various banking instruments to minimize risk such as bank guarantee and letters of credit.

The aim of the study is to research the synergy effect that arises from bringing mobile banking, rating agencies and banking instruments into a cohesive whole, as well as to measure the effect from such integration. The project examines prerequisites and technical facilities for implementing the counterparty-checking service into the mobile banking with an automatic offering to bank’s client to issue a cash-covered letter of credit.

The client way looks as follows: while making a payment through the online banking the client receives information from a rating agency about the counterparty’s risk level, for example low, medium or high risk level. In case of medium or high-risk level, the client will be automatically offered to mitigate these risks by opening a cash-covered letter of credit.

The study was carried out by means of correlating bank’s data on clients’ payments with rating agencies’ data on the beneficiaries’ risk levels, in addition to sociological survey and calculation of the potential effect.

The implementation of the proposed process solves issues both at the macro-level: development of a new market, reduction of losses in economy, promotion of public’s financial literacy, raising attractiveness for investments, and at the micro-level by increasing the net fee and commission income.


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