Efficient internal communications in the banking sector: significance, functions, and techniques of their implementation
DOI:
https://doi.org/10.51599/is.2023.07.02.13Keywords:
communications in banking organizations, internal communications, SMCR communication process model, interpersonal communication and the social-organizational framework, the Code of Corporate Ethics.Abstract
Purpose. The objective of the research is to evaluate the internal communications process within Ukrainian banks using a critical literature analysis methodology. This analysis aims to examine the structure and essential functions of internal communication, as well as strategies for enhancing communication while considering the nature of this process.
Results. Communication is crucial for the survival of financial institutions, as it helps them gather, analyze, and organize information about the external environment and transfer processed messages to the external environment. By addressing the challenges faced by employees in the banking sector, banks can create a positive internal and external image, fostering employee motivation, engagement, and success. Communication is the process of signals interchanging between the sender and receiver through a coding-decoding system, aiming to influence the recipient’s knowledge, attitudes, and behavior. The SMCR model, which includes the components of Source (or Sender), Message, Channel, and Recipient, is fundamental in communication studies. Effective communication involves receiving information from the receiver and responding to the sender’s prognosis. To improve the overall efficacy of the communication system, it is necessary to eliminate obstacles such as individual-personal, social, and cultural filters. The SMCR model identifies critical conditions for effective communication, including communication objectives, application preparation, channel selection, and appeal effectiveness. In banks, communication is related to both interpersonal processes and the social-organizational framework, resulting in predictable and stable communication between subordinates and managers. The analysis of communication networks in banks allows for an examination of the system’s integrity, connection with the external environment, and susceptibility to innovation.
Scientific novelty. The primary contribution of this work is its comprehensive elucidation of the concept and significance of external and internal communication within the context of financial institutions, along with the strategies employed to attain effective communication. The banking industry has a well-defined classification system for internal communication, which allows for the systematic analysis of the key advantages and disadvantages associated with such communication methods. This paper presents a comprehensive analysis of the strategies used to build efficient internal communications inside a banking institution.
Practical value. The study provided has practical value, as it helps in evaluating internal communication inside Ukrainian banks, specifically in terms of communication quality and the efficacy of tools used for its implementation. The findings of this study have the potential to inform future advancements in the integration of internal communication practices inside banking institutions.
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